Similar to many previous ANWR bills the new bill limits the development footprint within the 10-02 Area to 2000 acres, and mandates the use of the “best developmental technology available”.  The legislation further states that half of the first $3.5 billion of lease sale royalties be used to fund development of alternative “green” energies as set up by the Energy Policy Act of 2005 and the Energy Independence and Security Act of 2007.  The other half of the lease sale royalties would go to LIHEAP or Low Income Home Energy Assistance Program, and the Women’s Infants and Children’s Nutrition program. The Office of Management and Budget states that it’s estimate for Federal tax revenues from oil production in the 10-02 to be between $152 to $237.5 billion.  Murkowski & Steven’s new bill would order these production tax revenues to be divided in the same fashion as the lease sale royalty monies. This would cover LIHEAP, Children’s Nutrition and alternative energy development with tens of billions of dollars for over 30 years. ANWR oil is unique among energy sources as its development costs the American tax payer nothing and will contribute hundreds of billions of dollars to Federal coffers, something no other energy source does.

The price of oil is high due to the extreme tension between high demand versus short supply which in the US has reached just 1% or less difference or leeway between the two.  This is exacerbated by the weak dollar against other hard currencies, and political unrest in oil producing regions of the world.  The price of oil varies by the type of crude being traded and is set on free market principles traded on commodity exchanges such as the New York Mercantile Exchange or NYMEX.  Traders bid on future deliveries of oil based on what they think the market demand will be often in a months time. 

The US consumes 20 million barrels of oil a day.  Sixty five percent of that oil must be  imported due to environmental lock-up restrictions on oil production on America’s offshore Outer Continental Shelf (OCS) and areas like the 10-02 Area of ANWR where huge oil and gas deposits are known to exist.  Environmental groups have been successful for 25 years in stalling or blocking legislation to open up these areas due to an uncompromising belief that any human development destroys nature and the two are not compatible.  The 10-02 Area of ANWR was created with the expansion of ANWR in 1980 and defined specifically as and area “for the study of oil and gas development”.  It is believed, by geologists and the United States Geological Survey to contain the largest oil field to be found in the world in over 30 years.  Yet 10-02 Area cannot be opened without permission from Congress and signature by the President which has yet to happen.  In 1995 Congress approved the opening of ANWR yet this was vetoed by President Clinton.  Had Clinton not done so, ANWR would be contributing over 1 million barrels of oil to our nation today.  ANWR’s 10-02 Area is estimated conservatively to contain the equivalent of over 30 years worth of Saudi oil.

The oil America imports currently cost the nation $1,500,000,000 a day and remain the single largest drain on the economy.  The two Alaskan senators were adamant that at $125 per barrel the time was now to open the 10-02 Area.  At estimated flow rates and using $125 per barrel price level ANWR 10-02 oil could save the nation between $125,000,000 to $187,500,000 a day for decades.  The opening of the 10-02 Area of ANWR is supported by the Alaskan Native communities that live there, the Alaska State Legislature, the Governor of Alaska and over 75% of Alaskans. 

READ FURTHER COMMENTS ON THIS EVENT AT…

Senator Murkowski's comments

Senator Stevens comments