The US Senate has voted against President Bush's plan to open up some of the Arctic National Wildlife Refuge in Alaska to oil exploration.
The motion was defeated by 54 votes to 46.
Senator Frank Murkowski of Alaska, the measure's chief sponsor, says he is disappointed by the outcome of the vote. Senator Murkowski says that, sooner or later, the US is going to open up the wildlife refuge (ANWR).
George W Bush made oil and gas exploration in the refuge the central element of his energy policy in his presidential campaign.
In a statement last month, the White House said the area in Alaska is "by far the largest untapped source of domestic petroleum potential."
Oil and gas there, the statement continued, "would equal nearly 40 years of imports from Iraq." Some experts dispute those figures.
Mr Ari Fleischer, President Bush's spokesman, said the Senate "missed an opportunity to lead America to greater energy independence.
"The president will continue to fight for the tens of thousands of jobs that are created by opening ANWR, as well as, more importantly, for the need for America to be able to achieve more energy independence that would result from opening ANWR."
The 1.5 million acre Arctic wildlife area was established by President Dwight D Eisenhower in 1960.
Geologists have estimated that six billion to 12 billion barrels of oil could probably be produced there, depending on the price.
The US uses about seven billion barrels of oil a year, nearly two-thirds of it imported.
PA