Wells Fargo & Co. (NYSE: WFC) has joined two other major banks in ending financing for oil and gas projects in the Arctic region.
Wells Fargo said it would stop financing oil and gas projects on Alaska’s North Slope on Monday, according to Anchorage Daily News, a newspaper based in Alaska.
The banking company claims the Arctic National Wildlife Refuge on Alaska’s North Slope is an area it will avoid. Wells Fargo joins its peers Goldman Sachs Group Inc. (NYSE: GS) and JPMorgan Chase & Co. (NYSE: JPM) in stopping investments for oil projects in the Arctic.
Why It Matters
The Trump administration had cleared the way for oil drilling in a part of Alaska’s Arctic National Wildlife Refuge, claiming it would have a “negligible” environmental impact.
According to the Anchorage Daily News, Gwich’in tribal members and conservation groups had exerted influence on banks to reject financial investments in the Arctic refuge due to environmental concerns.
Oil industry insiders have expressed worries that diminished financial support for drilling would impede future projects in the area.
The decision of Goldman Sachs to withdraw financing from the protected area, led to the Alaskan administration dropping the state from its billion-dollar bond plan, reported Marketwatch.
Wells Fargo shares traded at $42.26 higher at 3.45% on Monday in the regular session. The shares were unchanged in the after-hours session.