Monday, May 26, 2008

Here're the savings from Arctic drilling — 75 cents a barrel

By Erika Bolstad

WASHINGTON — If Congress were to open up the Arctic National Wildlife Refuge to drilling, crude oil prices would probably drop by an average of only 75 cents a barrel, according to Department of Energy projections issued Thursday.

The report, which was requested in December by Sen. Ted Stevens, R-Alaska, found that oil production in the refuge "is not projected to have a large impact on world oil prices."

But the report also finds that opening ANWR could have other benefits, particularly in Alaska, where tapping the resources in the Arctic refuge could extend the lifespan of the trans-Alaska pipeline. It estimates that if Congress agreed to open ANWR this year, Alaskan oil could hit the market in about 10 years.

"I'm coming away from it saying that this is yet another an indicator that opening ANWR is important to this country and to our energy future," said Sen. Lisa Murkowski, R-Alaska.

The report was unveiled Thursday by the Department of Energy's research arm, the Energy Information Administration and came a day after the Department of Interior said that 60 percent of federal lands that hold potential sources of natural gas and oil are closed to leasing.

It also comes in the midst of a renewed push by Alaska's congressional delegation to persuade their congressional colleagues to open a portion of ANWR to oil exploration. Opening the wildlife refuge is the centerpiece of recently unveiled House and Senate Republican energy plans, which focus on increasing domestic oil production in the face of record oil prices that, this week, exceeded $135 a barrel.

Stevens had no comment about the report, but did speak on the floor of the Senate Thursday in support of opening ANWR to drilling.

- more -

Sphere: Related Content

No comments:

Blog Archive

Subscribe via email

Enter your email address:

Delivered by FeedBurner

Search This Blog

Subscribe Now: standard

Add to Technorati Favorites