Congress should open a
small part of Alaska's Artic National Wildlife Refuge (ANWR) to oil
exploration and drilling. H.R. 5429, the "American-Made Energy and
Good Jobs Act," provides Congress with the opportunity to take this
important and overdue pro-energy step.
The
Great Frustration
Both the House and the
Senate have supported opening ANWR many times before but have
repeatedly failed to do so in the same bill. The House tried
several times to include ANWR in the energy bill that finally
passed last year, but the Senate could not overcome a filibuster
against it. In the end, ANWR drilling was left out of the final
version of the Energy Policy Act of 2005. Then the Senate managed
to include ANWR in the recent budget reconciliation bill (which is
not subject to a filibuster), but the House was unable to include a
similar provision in its version of the bill.
The frustrating bottom
line is that ANWR, America's single most promising untapped source
of domestic oil, remains off-limits, though opening it enjoys
majority support in both Houses of Congress and among the American
people.
H.R. 5429 is ANWR's next
big chance, and given the proximity to the November elections, it
may be its best chance for a long while. Proponents hope that this
time things will be different. For one thing, the prices of oil and
gasoline are even higher now than during the previous times ANWR
came up for a vote. And government estimates of the economic
benefits from drilling for the estimated 10 billion barrels there
have also risen.
For the first time,
polling shows that a majority of Americans support drilling. The
public has been able to see past critics' exaggerations of the
environmental risks of Alaskan drilling, as well as the claims of
those who say that ANWR contains too little oil to make any
difference. Alaskan residents, who know first-hand that
oil-drilling causes little environmental harm, continue to support
ANWR by wide margins. This includes the native Inupiat Eskimos,
some of whom live close to the area where the drilling is likely to
occur.
Lessons
from Prudhoe
Alaskan oil drilling has
been a success story, both economically and environmentally. The
800-mile trans-Alaska pipeline built in the 1970s recently sent its
15 billionth barrel of oil to the lower 48 states. Most of this oil
came from Prudhoe Bay, about 80 miles west of ANWR in northern
Alaska.
The Prudhoe Bay experience
presents strong evidence that drilling can be done with only a
small impact on the environment. Decades of drilling on a scale
larger than that envisioned in ANWR has not harmed the porcupine
caribou herds near the drilling sites or caused any of the other
predicted environmental problems. Furthermore, ANWR drilling would
be done with technology and environmental safeguards far more
advanced than those available decades ago when Prudhoe Bay was
developed. ANWR drilling would also be far less sprawling than in
Prudhoe Bay. The surface disturbance would be limited to a few
thousand acres of the 1.5 million acre coastal plain, leaving the
vast majority of the 19 million acre refuge untouched.
The Prudhoe Bay experience
should allay environmental fears, and it provides other lessons as
well. The amount of oil found in Prudhoe Bay turned out to be
several billion barrels above even the most optimistic early
estimates. ANWR's estimated 10 billion barrels is more than enough
to make this a worthwhile project, but it could prove to contain
more oil, possibly much more.
It is difficult to say how
much ANWR could affect the market price of oil. However, the
experience of the past two years shows that, in a tight market with
limited spare capacity, just a little additional production can
make a noticeable difference in price. And ANWR's estimated one
million barrels per day is more than a little-that's two-thirds of
the amount of oil taken offline by Hurricane Katrina, which caused
a significant price spike.
At this point, opening
ANWR is both good politics and good policy, especially given the
public frustration over a Congress that has failed to do anything
useful about stubbornly high oil and gasoline prices. Granted, the
oil would take years to come online, and so ANWR is not a
short-term solution. Nonetheless, it would represent the first
truly useful step Congress has taken on the issue and a real
indication that Washington is ready to do more than just
grandstand.
If past is prologue, H.R.
5429 will likely pass the House and then run into difficulties
overcoming a filibuster in the Senate. But close votes on Alaskan
oil are nothing new. The Alaska pipeline, though in retrospect a
great success for domestic oil production, barely passed during the
Nixon Administration. Americans are fortunate it did. One day, the
same thing could be said of ANWR.
Ben
Lieberman is Senior Policy Analyst in the Thomas A. Roe
Institute for Economic Policy Studies at The Heritage
Foundation.