Energy package before Senate includes ANWR drilling provisions
Published Sunday, May 11, 2008
WASHINGTON, D.C. -- The Senate is set to consider competing energy packages on Monday or Tuesday, including a Republican proposal that would allow drilling in the Arctic National Wildlife Refuge.
Republican and Democratic leaders recently unveiled separate energy packages designed to show voters Congress is serious about tackling high gasoline prices at the pump. Analysts, however, have given both proposals the thumbs down for containing little that's actually likely to be signed into law.
Republicans – including Sens. Ted Stevens and Lisa Murkowski – are pushing a plan to boost domestic production off the Atlantic and Pacific coasts and in Alaska.
Murkowski, a member of the Senate Energy and Natural Resources Committee, has said she believes oil companies should be allowed to drill for oil along the coast of the Arctic National Wildlife Refuge and that it can be done in an environmentally sound way.
Republicans claim opening new areas to drilling offshore and in Alaska would produce an additional 24 billion barrels of oil, or enough to satisfy U.S. consumption for five years, which could help knock as much as $63 off the price of a barrel of oil.
The price of West Texas Intermediate light sweet crude oil closed Friday at a record $125.96 a barrel.
"Opening ANWR would allow us produce more here at home, help wean us off foreign oil and provide capital and tax revenue to invest in alternative energy projects" said Aaron Saunders, spokesman for Stevens.
The GOP package includes a number of measures that have failed to pass muster in the past – even some Republicans acknowledge the package is not likely to get out of the starting gate.
The ANWR proposal faces stiff opposition from Democrats and their environmental allies, but Stevens and Murkowski insist it will provide a shot in the arm to the sluggish economy and provide additional domestic oil supplies in the future.
"Opening ANWR is part of a long-term approach to dealing with an energy crisis that is apparent every time consumers fill up their gas tanks or pay their home heating bills," Saunders said. "Americans are simply tired of paying astronomical energy prices because Congress would rather import oil than produce it domestically. It just doesn't make sense."
Allowing oil companies to tap ANWR would eventually add 1 million barrels of oil a day to the nation's supply, but environmentalists argue that new oil is at least 10 years away from reaching the market and will do little to ease energy prices in the near term.
"At some point Congress must change course and do what is best for America," Saunders said. "Yet attempt after attempt is blocked by one party. At some point, this opposition, which is based primarily on misinformation, has to end."
Democrats, meanwhile, introduced their own energy package last week to combat soaring gasoline prices. It focuses on reducing market speculation and reducing drilling incentives for major oil and gas companies.
Big Oil's loss would be renewable energy's gain as Democrats are proposing using revenue from repealing tax breaks for the oil and gas industry to invest in alternative forms of energy.
Members of both parties are expected to support a measure calling for a temporary halt to squirreling away crude oil in the nation's Strategic Petroleum Reserve while prices remain at record levels.
Senate Majority Leader Harry Reid, D-Nevada, is expected to offer an amendment to flood insurance legislation that would suspend filling the reserve if the 90-day average price of crude oil remains above $75 a barrel.
Republicans have already offered a similar measure to stop placing oil in the reserve, however it's expected to face opposition from Democrats because it includes language opening ANWR. The flood insurance bill is expected to come up on the Senate floor as early as Monday night.
Both parties say taking oil off the market tightens supply and exacerbates already high gasoline prices.
The U.S. Department of Energy is putting about 70,000 barrels of oil a day in the reserve as a hedge against future supply disruptions. President George W. Bush has rebuffed calls to halt the program, saying the amount of oil being taken off the market is not enough to affect prices.
Democrats are also unlikely to win support for their broader energy package because of measures that Republicans and the Bush administration see as targeted to punish the oil and gas industry.
The Democrats' plan includes a repeal of $17 billion in tax incentives for oil and gas companies and smacks the biggest oil companies with a tax on windfall profits.
Democrats are not expected to have the votes in the Senate to overcome a Republican filibuster threat or a potential White House veto.
Lawmakers have two weeks to finish work before the start of the Memorial Day recess when they have to go home to face voters frustrated over skyrocketing prices at the pump.
Regular unleaded reached $3.92 a gallon at some stations around Fairbanks over the weekend.
The motorist advocacy group AAA expects the average price in the Lower 48 to reach the $4 a gallon as the summer driving season heats up, which only means higher prices around Fairbanks.
Community Discussion
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Any idea for this planet that has George W. Bush as an author or co-author is a bad idea. The man is a "turner."
An entire branch of government full of no one but unrepentant liars. The idea that opening up additional leases in Alaska would bring world oil prices down by $63 per barrel is a dream worthy of an acid trip. A tax on windfall profits will only increase prices. A pox on both parties and I'm going to ride my bicycle.
Why are we Alaskan putting up with the high fuel prices. Why are other foreign oil producing nations only paying around .80 cents a gallon and we are paying $4. Something is wrong with this picture and sometime needs to be done. But our own state legislature is scared to even touch the problem. They could have capped the cost of fuels several years ago to around $1.50 a gallon and still reap the benefits of the high barrel cost. Let the liberal, and none support for oil exploration and refinery building liberal pay $8 a a gallon to cover the difference. ANWR or any other potential field will never be open. You have politicians, like Obama, Clinton and Polesi that would never allow to open it. So enjoy our $6 or $8 dollar a gallon heating oil this winter.
Wonder why oil got so high? Started by scares of hurricanes hitting the rigs near Florida. How was Gov. there? Then slowly it the lies got bigger and even more unbelievable. That's why where at the place where at now the lies you hear from the President and his right hand man Chaney have been concocting lies for years that now the truth if it ever was said we'd say it's a lie. We have enough oil... the prices are made not by who you think it's regulated by the World Bank that sets prices. So, the only things that are being paid is the his WAR and Chaney Halliburten amazing that there even involved in Alaska the wars over seas I thought but where one of the first rigs up there. Just have to go in Chaneys funds and follow the money from there. Then you'll know who's making money.
Here's what the World Bank says about oil.
High and volatile oil prices threaten economies of oil-exporting and oil-importing developing countries, and pose challenges to financial sector stability, growth and poverty. Meanwhile, new players emerged in the oil market such as Sovereign Wealth Funds and oil hedge funds with varying degree of transparency. Policymakers the world over are looking for information and analysis on oil-price dynamics as well as instruments for risk management.
In responding to client demand, the World Bank Institute and George Washington University jointly organized this global finance forum to provide a
platform for global policy dialogue, enhance skills on risk management instruments, and look ahead to likely future scenarios. Invited speakers include world renowned economists, prominent experts and strategists from the energy sector, investment banks, sovereign wealth funds, and major multinationals as well as staff from the IMF and World Bank Group.
The fee for attending this event is US$1,200. This fee includes the expenses of the welcome reception, instructors’ fees, books, training materials, light lunches and coffee breaks during the days of the conference.
Ten years ago under Clinton, the environmentalists argued that it would take 10 years before the oil would reach the market, and would do little to add to what is already available. Sounds familiar in this article. What does it take for these ------- to wake up and protect the future from OPEC?
Most oil price contracts are denominated in dollars. The dollar has fallen in value by more than 30 percent against a Federal Reserve index of major currencies since 2002. This means that the price of imports, including oil, have gone up. To some extent, the chief of the Organization of Petroleum Exporting Countries (OPEC) Chakib Khelil was correct when he said earlier this week, "What's happening in the oil market is due to the mismanagement of the U.S. economy."
Does this sound like mismanagement in congress? Since the dems have taken congress, the price has had a steady rise.
Mismanagement in congress on a massive level. All Democrats and a few misguieded republicans can do is say what is "bad", however, they can rarely offer any alternatives. I say DRILL ANWR NOW! Afterall, what's a few hundred more holes in the ground? The North Slope oil production needs a shot in the arm and this will do it.
95% of the Arctic Slope is already open to drilling.
Opening the Arctic Refuge will do NOTHING to lower the price of fuel at the pump.
If drilling is opened up, then it may lower fuel prices by 1¢, 10 years from now- and last for only about 6 months until the oil runs out and scar the last pristine wildland in North America.
We could have an IMMEDIATE fuel savings equal to or greater than drilling in the Arctic Refuge just by ensuring that our tires are properly inflated & drive no faster than 55 MPH.
We must find a suitable replacement of oil, not just for fuel used for transportation & heat our homes, but to replace petrochemicals- i.e. plastics, that is used in almost every consumer product made and/ or shipped.
We've reached peak oil production and without that replacement, our global economy will collapse & revert to a pre-industrialized society.
Ya might as well start learning those lyrics to Hank William jr's song "A country boy can survive".
I am so sick of the environmentalist scare tactic view points and influence. I say ditch the environmentalist and do what should be "being" done......DRILL IN AMERICAN SOIL! How many times are the dems gonna say "if you start drilling now it'll be 10 years before we see it!" If we had drilled 10 years ago we'd be seeing it now! And riding a bike is not a possibility for most of Alaskas residents, not to mention bicycles dont heat houses!
The dollar started falling long before the Democrats took Congress, and it is a direct result of deficit war spending and other bankrupt Republican policies. Falling dollar=rising oil prices.
The reason other countries see lower prices at the pump is because their governments subsidize it, to keep their populations fat dumb and happy so they can stay in power.. The countries with cheap gas are totalitarian societies, people. You think the US should subsidize oil?
Most Americans don't know a darn thing about world markets and the true reasons behind gas prices, which is a real shame. They'd rather parrot what their favorite TV or radio commentator with an agenda feeds them.
I can skin a buck and run a trot line and a country boy can survive.
Everyone that thinks where they are going to drill in ANWR (and eventually they will), is pristine wilderness needs to wake up. It is tundra, covering perma frost, on top of a big oil field, and has already been disturbed by man.
As an Alaskan, I say leave it in the ground as long as we can keep the idoits fighing about it. Lets keep it in our big mason jar burried in the wooly swamp. Look around folks, that is our grand kids' 401K and at the current rate oil is increasing in value, we are doubling our savings every year we keep it burried. I don't see any other investment gaining value this fast.
Let big oil keep raising the price. We will reap the benefits in the long run. Tighten your belts now though, it looks like it's going to be a bleak tourist season, and winter is only four months away.
"and winter is only four months away..."
Wow, that is harsh!!
Okay Oyegi. Maybe you can clarify some of your claims and allegations for us.
"""95% of the Arctic Slope is already open to drilling."""
Really? Then why are there no producing wells outside of the Prudhoe Bay area? Are the NPR-A and the 1002 areas really open?
"""Opening the Arctic Refuge will do NOTHING to lower the price of fuel at the pump."""
I'm not foolish enough to guess how little or how much putting an extra million barrels down TAPS every day would help, but I know a basic economic principle is that you can't make something cheaper by producing less of it. I know that if Billhelm Von Clinton hadn't vetoed opening the 1002 area ten years ago, we'd have that daily million barrels now. Just how much that would have affected the price at the pump is anybody's guess, but our trade deficit would be significantly less(that much less oil to import), which would mean less downward pressure on the value of the U.S. dollar that we use to pay for gas at that pump and a whole lot of other things.
"""and last for only about 6 months until the oil runs out and scar the last pristine wildland in North America"""
Only 6 months? Assuming that we just shut off all other sources including present North Slope production: Just how do you propose to push 4-16 billion barrels through TAPS in just 6 months?
Last pristine wildland in North America? Oh really? Tell me: Have you ever been off the road system in this state? Ever taken a boat ride down the Tanana/Yukon to Mountain Village? Have you ever flown into Noatak, Yakutat, Koyuk, Illiama, or Cold Bay and bothered to look out the window?
Country boys survive because they're not afraid to go out and drill a whole in the ground.
That reminds me I need to call the fuel company tomorrow and fill my tank for the winter. No telling how much it will cost in September.
I will help the environment by buying an above ground tank and filling it now to supplement my other one. It will save the auto-fill company from having to deliver so often, using less fuel, reduce vehicle emissions in the winter, and I get the bulk discount. By the time they get the tank to me though, the bulk fuel rate will be at today's retail price. I wonder if I can get some of that "state of emergency" money to help offset the cost.
We need to Drill every where and now!
Those rascally democrats doing the bidding of the earth worshiping whackos has succesufully stopped all oil drilling, all construction of oil refineries and nuclear power plant in the last 30 years! We now import 13% of our refined gas......Now, Those same dems want to do nothing to lower the price of gas, just increase the cost of our food with their disasterous ethynol policy by turning FOOD into deisel......This is insanity yet these bozos are in control of both houses of congress!I want to sincerely thank all you idiots that keep voting these economic democrat traitors into office time and time and time again.
Oyegi_Thamu...I also am curious if you have ever been off the road system?? Have you ever been to any part of ANWR?? Like Tundra Rebellion says, you obviously have not been out west, southwest, northwest or you would not have made some of the ignorant comments you made. There are miles and miles of miles and miles of pristine wilderness....right along the river corridors, not to even mention the areas back off the rivers!! These are some of the same "facts" that environmentalist use to convince ignorant people down south about Alaska.
lol We should all listen to country music so we can actually enjoy drilling oil with tears with laughter, while others gain our oil we pay higher price even though the oil comes from alaska we pay higher prices than those who we sell it too. So funny why is that, who cares, right, lets just begin mining all minerals and oil so the greedy politicians can actually be blamed for ruining the most prestine land within the U.S.
I was using country music on how we can express a sorrowful mood when we do drill and destroy what is pure. But oil and minerals are pure except for the chemicals developers use to process the resources into viable energy. And, by blaming the poliicians will not matter, they have the legal right to steal what is not theres and the public supports this stealing and we wonder why we have so many criminals in Alaska, lol we all should have a party! At least provide each Alaskan with shares into the oil development and minerals mining so we all can be satisfied and smile forgetting about rights, nature, and compassion, i bet if you give a check to all the environmental to work they would keep quiet such as Alaskans, since most suffer through high heating cost, transportation, and food, but hey whos paying attention, except those who do not have to worry, RIGHT, who is right, lol
BullsEye: Its not the Dems who are messing up our energy policy. We have a real problem today with our elected officials as a whole. Look at the arragant and corrupt republician party. I was once a republican but now im undeclared.
Just the other day Don Young said he wanted to raise the federal gas tax from 18c to 1 dollar. He wants to do this at a time of record gas cost! What an idiot.
Both of our parties are lost in the woods of special interest groups who fund elections and control them soon after.
The only real answer is to look after yourself and family and prepare for a future time when our elected officials usurp our rights and freedoms because of pressure from hostile governments who own our debt and will bring a economic holocaust to our shores.
Get yourself ready, the government won't be doing it for you
Well gee TundraRebellion & Yukonjohn, yes, I have been off the road system. I've been on the Yukon, the Sheenjik, the Chandalar, Nenana & the Kuskokwim. No, I havn't been to Mountain Village, Noatak, Yakutat, Koyuk, Illiama, or Cold Bay but I've been to plenty of other villages in the Interior & the state. I've lived in & around Fairbanks. I've still know & talk to few people that live in Anchorage, Juneau, Barrow, Nome, as well as the villages. I haven't gotten up to see the Arctic Refuge for myself, but I know people that have, so I've relyed on their 1st hand accounts. Is it really that important to you if I have or not?
I'm glad that drilling hasn't been allowed in the refuge. Hopefully it never will. I've seen plenty of garbage floating around in those rivers from people that don't care & don't want the same to happen in the Arctic Refuge. Is that considered ignorant?
Wy are there no producing wells outside of the Prudhoe Bay area? Ask BP & the other oil companies. Are the NPR-A and the 1002 areas really open? Ask DOI. In 2002, the USGS said that NPRA has 5.9 - 13.2 billion barrels of undiscovered, technically recoverable oil within NPRA (and then oil was $25 - $30 a barrel). Why not push to drill there instead of where the Gwich'in or the calving grounds for the porcupine caribou would not be affected?
How about the costs to drill in the Arctic Refuge. It would cost millions of dollars, not to mention all the money that goes into fighting (for and against the idea). That money would be better invested in developing alternate fuel sources. Oil is a finite resource that, day by day, we're getting closer to the end of.
There are better alternatives to drilling. Sooner or later, those alternatives will be the only options. I'd rather see us move away from having to drill to sustain our economy & our lifestyle.
Thank you for replying Oyegi.
Where you've been in Alaska isn't important, except you made the statement: """the last pristine wildland in North America""". Maybe Yukonjohn and I wonder just where your reasoning for making such a bold statement comes from.
No, it's not ignorant if you don't want see anything in the refuge. That's a just valid personal opinion that you and anybody else are entitled to.
As to NPR-A, the last I heard, the southern area has been completely removed from consideration by the BLM. The Northern and Eastern areas are still tied up by Sept. 2006 environmental litigation, with new regulations and leasing by BLM not expected until December. After that, I'm sure Earthjustice will have the opportunity to file more lawsuits in order to keep the petroleum reserve closed.
As to alternative energy, more power to you, but electric power generation is not much of a worry anyway if you're willing to allow for coal, natural gas, or hydro-electric. If not, then we can all just freeze in the dark together.
www.drillusaoil.com
You're welcome. I think that there are better alternatives to coal (even "clean coal"), NG & hydro-electric. What has me more worried than fuel for transportation is a viable alternative to petrochemicals like plastic. Just about every consumer product is made and/ or packed and shipped with plastic. Can you imagine going a day without using a product that did not contain plastic or was associated with plastic? Try making a list. It'll be a pretty short list.
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