Heritage Foundation Leadership for America

REGULATION IN BRIEF: 
The Arctic National Wildlife Refuge (ANWR)

December 2, 2005                                                No. 23
Background:  The Arctic National Wildlife Refuge (ANWR) covers approximately 19 million acres in northeastern Alaska’s North Slope region. Cited for its potential to supply domestic oil, ANWR has been at the center of a fierce debate in Congress over whether drilling in the refuge should be permitted.

Status:   In November, the House and Senate hammered out their budget bills, which are now in conference. As a revenue-raising measure, the Senate’s bill includes a provision to lease drilling rights in ANWR. So did the House’s budget bill, initially. Twenty-four “moderate” Republicans in the House, however, pledged to oppose drilling in ANWR (despite the fact that many of them had voted in favor of the measure previously), and so the House leadership axed it, lest the provision endanger survival on the floor. Every other time that drilling in ANWR has come up—as recently as in this year’s Energy Bill—the Senate has been the stumbling block. Now, with the situation reversed, the matter will have to be addressed in conference in a way that House leadership can be confident won’t block passage of the final bill.

Discussion:  ANWR is the largest untapped source of American oil, with 5.7 to16 billion barrels of recoverable crude oil, according to a U.S. Geological Survey estimate. Assuming the middle of this range, ANWR could provide nearly one million barrels per day, every day it is in operation, for several decades. This level of production would require drilling on only 2,000 of ANWR’s 19 million acres which would occur only during the time of year when the ground is frozen and wildlife is scarce in the region.  Still, drilling opponents contend that oil extraction would damage the local ecosystem. Thirty years of drilling in Alaska's Prudhoe Bay, however, has not had a significant effect on the area's wildlife. Moreover, today's drilling technology is far more environmentally sensitive than what was available 30 years ago.

Should Congress move to open ANWR, not only would the U.S. benefit from increased domestic oil production, but the federal government would receive an estimated $2.5 billion in oil leasing revenues. Alaskans, who overwhelmingly favor opening ANWR to drilling, also stand to benefit, by job creation and increased revenues to the Alaska Permanent Fund.

Action item:  Opening ANWR would be the federal government’s first significant pro-energy measure in years and a sign that Washington is finally ready to start addressing the nation’s future energy needs.Lawmakers should recognize the benefits of domestic oil production and ANWR’s potential to reduce U.S. dependence on foreign oil.

This brief was prepared by Heritage Research Assistant Nancy Marano.

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