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Friday, May 2, 2008
Arctic Oil Drilling In Domenici Plan
By Michael Coleman
Journal Washington Bureau
WASHINGTON— Sen. Pete Domenici on Thursday suggested opening the Arctic National Wildlife Refuge to oil drilling as part of a major U.S. production initiative to help drive down gasoline prices.
The measure also calls for oil drilling in parts of the outer-continental shelf off both coasts, mining oil shale in Colorado and other Rocky Mountain states, and a temporary suspension of U.S. oil deposits in the Strategic Petroleum Reserve.
Domenici, the top Republican on the Senate Energy and Natural Resources Committee, unveiled his bill during a Capitol Hill news conference along with a dozen other Senate Republicans.
Senate Democrats said the bill's chance of passage— especially containing the ANWR provision— is slim.
In all, Domenici said his bill would produce up to 24 billion barrels of oil, or enough to fuel the U.S. for five years without imports.
Gasoline prices averaged about $3.62 cents a gallon nationwide and $3.56 a gallon in New Mexico on Thursday, according to the American Automobile Association.
"The American people are absolutely fed up with these prices, and they know we can do better," Domenici said. "We haven't done what we can do with American production."
He urged Democrats in Congress, who have blocked Arctic oil drilling several times before, to reconsider.
Federal estimates show that ANWR contains about 10 billion barrels of oil. Even if Congress authorized ANWR drilling this year, the oil wouldn't get to the market for 10 years.
Republicans noted that if President Clinton had not vetoed an ANWR drilling bill that Congress passed in 1996, that oil would be on the market by now.
"If you voted against it before, take another look when oil is $115 per barrel," Domenici said to those who oppose ANWR drilling.
Sen. Jeff Bingaman, D-N.M., chairman of the Senate energy committee, has consistently opposed ANWR drilling in the past and said Thursday he has not changed his mind.
"I think the decision on ANWR should not be made in response to an immediate increase in the price of gas, I think it should be made in response to the long-term judgment of the country," Bingaman told the Journal. "So far, the Congress has voted not to open it, and that's been my position. That continues to be my position."
Sen. Lisa Murkowski, an Alaska Republican, said new technology would allow for Arctic drilling with minimal environmental impact.
"Allow us to use the technology this country has produced to develop a resource this country needs," she said.
Bingaman said the U.S. should continue to produce domestic oil— including along the outercontinental shelf— but he said conservation offers more potential to reduce prices.
"We are not going to drill our way out of this problem," Bingaman said. "In the short term, the largest impact anyone can have is in reducing consumption. We need to continue on a course to more fuel-efficient vehicles."
During a Senate floor speech Thursday, Bingaman said Americans can help save gasoline by driving 5 mph slower, which would boost their fuel efficiency by 7.5 percent.
Bingaman also suggested suspending U.S. oil deposits (about 75,000 barrels per day) into the Strategic Petroleum Reserve as a way to increase global supply.
Bingaman said Congress also should move to rein in Wall Street oil speculators, who he contends are pushing prices up.
Domenici said opening ANWR and other parts of the U.S. to oil drilling would have an immediate effect on prices.
"It would send a shock wave to those who sell us so much oil that we are finally doing something for ourselves," Domenici said. "I think it would bring them down quickly."
Meanwhile, presidential candidates Hillary Clinton and John McCain have endorsed the idea of suspending the federal 18-cent gasoline tax between Memorial Day and Labor Day.
Bingaman and Domenici both said they oppose the idea, in part because it would shortchange the already cash-strapped federal highway fund.
