Opening ANWR: Long Overdue
by Ben Lieberman
March 17, 2005
WebMemo #692
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.
Ben Lieberman is Senior Policy Analyst in the Thomas A. Roe Institute for Economic Policy Studies at The Heritage Foundation.