5 Reasons To Drill In The Arctic National Wildlife Refuge Instead Of Draining The Oil Reserve

NEWNow you can listen to articles from Fox News!

In continued response to high gasoline prices, President Joe Biden recently announced an extension of drawings of about 1 million barrels per day from the Strategic Petroleum Reserve (SPR), the nation’s emergency oil reserve. We could get at least that much oil from further domestic drilling. Alaska’s Arctic National Wildlife Refuge (ANWR) alone has the potential to deliver up to 1 million barrels a day, but drilling there has been halted by the Biden administration since opening day. Here are five reasons why ANWR is a superior source of oil to SPR.

1. ANWR would supply more oil, not borrowed oil that has to be repaid

The SPR contains previously produced oil purchased by the federal government and held in reserve for an emergency. Due to the Biden administration’s withdrawals in recent months, the SPR is currently at a 30-year low and will need to be topped up at some point if it is to be available again. Indeed, energy markets recognize that SPR has to be paid off barrel-by-barrel, which is why harnessing it rarely brings oil prices as much as hoped. In stark contrast, ANWR would obviously never need to be replenished and thus could provide a real addition to oil supplies. It’s like the difference between an unemployed person taking out a bank loan to cover expenses or finding a new job.

2. ANWR would supply oil for decades instead of months

Withdrawals of 1 million barrels per day from the SPR can only go ahead for a few months before the reserve drops dangerously low – in fact we’re already there. But, as evidenced by the fact that drilling around Alaska’s Prudhoe Bay – the closest project to ANWR – has exceeded 40 years of production, ANWR will most likely be adding to national oil supplies daily for a long time to come. At its peak, ANWR is estimated to be able to supply an average of 880,000 barrels per day and possibly more.

PACIFIC NORTHWEST PIPELINE EXPANSION CHALLENGED BY ENVIRONMENTAL GROUPS

3. ANWR generates revenue while SPR costs it

The SPR, like all federal programs, requires tax money to maintain and operate. In contrast to the SPR’s drain of government resources, the costs for developing the ANWR would be borne entirely by the private sector. In addition, ANWR would generate leasing, royalty and tax revenues that, according to one estimate, could total $150 billion to $296 billion dollars for the federal government and the state of Alaska.

Polar bears sleep on the beach at the Arctic National Wildlife Refuge in early September as they wait for ice to form on the Arctic Ocean. CREDIT Michael Miller

4. Unlike SPR, ANWR does not burden existing infrastructure

An underreported disadvantage of the SPR is that its storage facilities in Louisiana and Texas are in the vicinity of an oil boom. As it stands, the infrastructure required to transport that region’s oil to refineries, refine it, and deliver the refined products to customers is already at or near capacity, with occasional bottlenecks. To the extent that we should make room in the system for SPR oil by reducing domestic production, the whole purpose has failed. Instead, ANWR oil would be transported via the currently underutilized Trans-Alaska Pipeline and could then be shipped to any of several refineries that need it.

CLICK HERE TO GET THE OPINION NEWSLETTER

5. Locals support ANWR drilling, but not SPR retreats

In Alaska, drilling in ANWR enjoys sizable, bipartisan support, thanks to the aforementioned revenues along with job creation projections well into the tens of thousands. And, judging by their elected leaders, most Louisianans and Texans alike support local oil production and see the Biden administration’s withdrawal from the SPR as a poor substitute for real drilling.

CLICK HERE TO GET THE FOX NEWS APP

To be sure, ANWR drilling cannot happen instantly. But the mere fact that so much future oil is on the way would have a beneficial effect on current prices.

Unfortunately, the reason Biden would rather borrow oil than drill is the climate change-inspired fantasy that we will only need fossil fuels for a little longer before his “incredible transition” to clean energy take hold. Leveraging the SPR to drive prices down is a short-term solution that fits the administration’s wishful thinking, while ANWR and other domestic drilling is a reasonable long-term answer to pump pain, not just for today but for years to come. to come .

CLICK HERE TO READ MORE FROM BEN LIEBERMAN

Leave a Comment

%d bloggers like this: