Congress now has
the best-and possibly the last-opportunity to open up a portion of
Alaska's Arctic National Wildlife Refuge (ANWR) to oil exploration
and drilling. The Senate is set to include ANWR drilling provisions
in its budget resolution, which should come to a vote before the
end of the week. Doing so would help boost domestic oil supplies
and send an important signal that the United States is serious
about addressing its future energy needs.
New Politics
Objections to
drilling in ANWR, mostly from environmentalists, have stymied
efforts to open up the refuge ever since a 1980 change in federal
law allowed for oil and gas exploration there. At the time,
Alaskans were under the impression that production would start
soon. Sen. Ted Stevens (R-AK), who recently toured the remote North
Alaska site, said that for "24 years I've argued to get Congress to
keep its word to us."
Over the last four
years, the only holdup has been in the Senate. The most recent
version of the Senate energy bill, which fell two votes shy of
breaking a Democratic filibuster, did not even contain ANWR
provisions. The Senate had voted 52-48 to keep ANWR out of the bill
entirely.
ANWR's prospects
in the Senate now look considerably brighter. Though still unlikely
to survive a filibuster, ANWR could probably pass a simple majority
vote. The Senate's budget resolution may accomplish this. It
includes expected federal revenues from oil leases in ANWR,
estimated to bring in about $2.7 billion dollars, and a provision
to lift the current restrictions on drilling. ANWR's opponents
tried to strip these provisions from the budget but failed in at
51-49 vote on Wednesday. Because the budget cannot be filibustered,
that was their final chance. A vote on the whole budget could come
later in the week.
In Washington,
support for opening ANWR falls mostly along party lines, with only
a few Democrats in favor. But that is not so in Alaska. In the
Alaska's 2004 Senate race, both candidates accused each other of
not being sufficiently pro-drilling. Republican Lisa Murkowski won,
but only after fending off attacks from Democratic challenger and
former Governor Tony Knowles that she failed to deliver ANWR
drilling to the Alaskan people. Alaskan residents would share in
the leasing revenues, as they have with Prudhoe Bay, located west
of ANWR. Prudhoe Bay has delivered billions of barrels of crude
through the Alaskan oil pipeline since the 1970s.
Good Energy Policy
The Prudhoe Bay
experience also presents strong evidence that drilling can be done
with only a modest impact on the environment. Decades of drilling
on a scale much larger than that envisioned in ANWR have not harmed
the porcupine caribou herds near Prudhoe Bay or caused any of the
other environmental problems that were predicted. Thirty years
makes a difference, too. Drilling in ANWR would be done with much
better environmental safeguards than were available in the 1970s.
And today's technology is far more environmentally friendly than
that available 30 years ago.
ANWR is the
largest single untapped source of American oil. The US Geological
Survey estimates that it contains 5.7 to16 billion barrels of
recoverable crude oil. Assuming the middle of this range, ANWR
could provide nearly a million barrels per day, every day it is in
operation, for several decades. This drilling would occur on only
2,000 acres of ANWR's 19 million acre expanse and only during the
time of year when the ground is frozen.
If Prudhoe Bay is
any guide, ANWR probably contains more oil than is currently
estimated. Prudhoe Bay has provided several billion barrels above
initial predictions and is still producing today, years longer than
expected. As with ANWR, Prudhoe Bay had its opponents at the time
it was commissioned, but without its oil, gas prices today would be
even higher.
With oil currently
at $55 per barrel-an inflation-adjusted level not seen since the
early 1980s-public support for opening ANWR is also stronger than
in the past. Supporters should remember, though, that ANWR drilling
is a long-term project, not a short-term solution. It will take at
least seven years of work before the first barrel becomes
available, and so ANWR will not affect current oil and gasoline
prices. On the other hand, had President Clinton not vetoed an ANWR
proposal in 1995, we would have that oil today.
Conclusion
ANWR alone will
not dramatically bring down the global price of oil, but it will
help more than any other single measure within the federal
government's control. Perhaps more importantly, it would signal a
real shift in Washington's approach to energy. For the past decade
or more, the federal government has been a hindrance rather than a
help in expanding America's domestic energy supply. Opening ANWR
would be the federal government's first major pro-energy measure in
many years and would be a real sign that Washington is finally
ready to start addressing the nation's future energy needs.
For these reasons,
the Senate would be wise to use this opportunity to include ANWR in
its budget.
Ben
Lieberman is Senior Policy Analyst in the Thomas A. Roe Institute
for Economic Policy Studies at The Heritage Foundation.