Nobody outside of
the Administration knows for certain the contents of Tuesday's
State of the Union address, but President George W. Bush will
likely devote several minutes to energy issues. Many predict he
will announce a big boost in funding for federal energy research,
with plenty of optimistic rhetoric about future breakthroughs in
alternative energy sources and the like. However, the best energy
measure the President could put forward is to call for legislation
allowing oil drilling in Alaska's Arctic National Wildlife Refuge
(ANWR).
Common sense
almost won out on ANWR in 2005, but provisions to open it to
drilling were narrowly defeated. At a time of high oil prices and
political turmoil in so many oil-producing nations, Americans must
make maximum use of domestic oil reserves. ANWR, which is currently
off-limits to energy production, represents the single largest
untapped source of onshore oil in the country. Its estimated 10.4
billion barrels are concentrated in a very small part of this 19
million acre piece of Northern Alaska. This is an area with a long
track record of environmentally-responsible drilling, and the oil
is conveniently located near the Alaska pipeline, which can bring
it south to West Coast refineries.
Not only would the
extra oil help bring down prices and add stability to the oil
market, but ANWR drilling would also be an economic boon in other
ways. The project would create thousands of private sector jobs,
and assuming the current price of $65 per barrel, ANWR's estimated
10.4 billion barrels would create over $650 billion in wealth over
the next few decades.
Both the House of
Representatives and the Senate passed ANWR provisions in 2005, but
they could not manage to do so in the same bill. First, the House
placed drilling provisions in its version of the energy bill.
However, the Senate, unable to muster the 60 votes necessary to
overcome a filibuster, left ANWR out its version, and the Energy
Policy Act of 2005 was finalized without it. Then pro-drilling
Senators placed ANWR in the budget reconciliation bill, which is
not subject to a filibuster, but the House was unable to support it
in that vehicle. At the end of the year, the House successfully
added ANWR to the defense appropriations bill, but the Senate could
not overcome a filibuster against it.
As frustrating as
this turn of events was, 2005 nonetheless was the first year in
which both Houses of Congress expressed majority support for ANWR.
Congressional supporters have vowed to try again in 2006, and it
will likely be a close vote again. Support from the President in
the State of the Union, highlighting the benefits of ANWR drilling
and reiterating his longstanding support for it, could very well
make the difference.
Whether or not he
mentions ANWR, the President will probably announce new efforts to
fund energy research, as he has in previous State of the Union
addresses. However, it would be a mistake to see our energy future
as an either/or proposition between current fuels like oil and
potential new ones like hydrogen or cellulosic ethanol. Whatever
new energy research programs the President announces, it will be at
least a decade or two (if ever) before anything useful results from
them. Meanwhile, Americans will continue to be dependent on current
fuels and technologies, and for transportation, that means
petroleum. The age of oil will be with us for at least a while
longer, and Washington has an obligation to the American people to
ensure that it is as affordable as market forces will allow. For
this reason, drilling in ANWR should be a part of the State of the
Union address and a part of Congress's legislative agenda for
2006.
Ben
Lieberman is Senior Policy Analyst in the Thomas A. Roe
Institute for Economic Policy Studies at The Heritage
Foundation.