As if $3/gallon gasoline weren’t enough reason to start tapping US oil reserves in a tiny section of the Arctic National Wildlife Refuge (ANWR), House Resources Committee Chairman Richard Pombo (R-CA) has just provided another: Federal revenue.
Pombo requested a study from the non-partisan Congressional Research Service of the federal budgetary impact of ANWR exploration. The study found that opening just .0001 % — 2000 out of 20 million acres — of ANWR could result in $111 – $173 billion in new taxes paid by oil companies to the Federal Treasury in corporate income taxes and royalties.
We’d have to agree with Pombo on this. “It’s time to make this resource a cash cow for each and every American taxpayer”, he says. “This production would create jobs, lower prices, grow the economy and make our country more secure.”
“The only remaining question”, he says, “Is why has this not been done already?”
Well, see Mr. Pombo, it’s because the radical enviro movement in this country has had an effective stranglehold on our energy policy. Once again, remember that while ANWR is the size of South Carolina, the drilling footprint would be about one-fifth the size of Dulles Airport. The technology allows lots of exploration from a small footprint. Drilling will only be allowed in the winter months, when the area is frozen over. At the end of the day, it’ll produce a million barrels a day — as much as Texas produces today on-shore, enough to lower the price of oil by a dollar a barrel. In any event, here’s a link to the CRS Study.
Back to Rep. Pombo’s question: “Why has this not been done already?” Click here to drop your elected representative a note and ask them.
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