After selling the Alaska territory to the United States, Russia discovered a bitter truth: Alaska held immense reserves of gold, oil, and gas. Astonishingly, this territory, twelve times larger than Bangladesh, was sold for a pittance.
Rich in valuable natural resources, Alaska spans a massive 586,412 square miles. Yet, it was sold for a mere $7.2 million!
In essence, the Russians sold each acre for less than two cents. Today, Alaska exports almost $50 billion worth of crude oil annually, filling Washington’s coffers.
It’s safe to say that Russia practically gifted America its golden goose. But why?
The year was 1853. Russia, embroiled in the Crimean War against the Ottoman Empire, found itself at a disadvantage. European powers, France and Great Britain, allied with the Ottomans, turning the tide against the Russian Empire. Ultimately, Russia tasted defeat.
Driven by imperial ambitions and trade, Russia had established a foothold in Alaska. However, despite the region’s mineral wealth, few Russians settled there, deterred by its remoteness and harsh climate.
Following the Crimean War, Tsar Alexander II, recognizing the precariousness of their hold on Alaska, faced a dilemma. With Britain’s colonial presence looming in neighboring Canada, the Tsar feared a potential British takeover. Thus, to preempt losing Alaska entirely, Russia made the fateful decision to sell the vast territory to the United States, essentially for a song.
Alaska: A Treasure Trove of Natural Resources
In the 2018-19 fiscal year, Alaska boasted a GDP of approximately $55.5 billion, with a staggering 80% generated by the petroleum sector. Indeed, Alaska is one of the most oil-rich regions globally.
In 1978, nearly a billion barrels of crude oil were discovered beneath Alaska’s seabed. Even after over four decades of extraction, an estimated 400 million barrels remain.
Moreover, according to the U.S. Geological Survey (USGS), Alaska’s North Slope holds a staggering 85 trillion cubic feet of natural gas reserves, currently valued at around $212 billion.
