Discovery, Technology May Force Answers

One all-too-familiar argument is that "There is little chance of finding oil, so why risk the environment in the search?" Recent discoveries adjacent to the Coastal Plain, however, may force an answer to this question once and for all. In March, British Petroleum (BP) and Chevron announced a 100-million barrel discovery at their Sourdough lease on state-controlled land just west of ANWR. If the formation extends under the Coastal Plain, it would prove there is oil in ANWR. It would also bring up the possibility of lost federal dollars if production at Sourdough "drains" federal oil and gas from under ANWR. This scenario could present a "rock-and-hard-place" situation for Interior Secretary Bruce Babbitt.

In order to claim "drainage" and protect federal oil, he would have to approve exploration activity to determine whether Sourdough extends beneath federal land. That means drilling, and drilling creates the risk of finding reserves too valuable to leave, especially in these times of increasingly scarce revenue and a Congress committed to cutting taxes. If Secretary Babbitt decides not to drill, oil companies and the State of Alaska may end up with nationally owned oil without paying federal royalties.

Sourdough may not prove to be the sole impetus behind ANWR exploration. Exxon has discovered a massive natural gas reserve at Point Thompson, just west of the Coastal Plain, and other companies have on-going exploration activities in the area as well.

Anti-ANWR groups also cite a scarred environment as rationale to prohibit development. This reasoning is losing its punch, thanks to technology that leaves a fraction of the footprint left just 20 years ago. The fact is that Alaska leads the world in developing cheaper, cleaner and environmentally safe ways to explore and produce oil and gas in the Arctic. Such technology includes vastly improved seismic exploration, well-spacing, drilling mud disposal techniques, use of ice roads and drilling pads. Advanced directional and extended reach drilling now allow companies to reach reservoirs 3-1/2 miles (4 to 5 in the very near future) from the surface, significantly decreasing the number of surface drill sites. New fields at Prudhoe Bay are being produced from smaller and smaller surface pads, and now impact less than 1% of the tundra of any leased areas.

The duty to responsibly manage the nation's resources, along with strides in petroleum technology will likely compel the Department of the Interior to put its own mark on ANWR sooner rather than later. Ultimately, such a move would represent a quantum leap toward opening the Coastal Plain to oil and gas development for America.

From the Executive Director

A national organization, PFUSA is 25,000 members strong. Its mission is to advocate for responsible natural resource development, multiple use of public lands and protection of private property rights. Generally, it focuses on re-introducing people into the resource equation and opposing overzealous environmental regulations.

PFUSA has had a hand in supporting Alaskan efforts to maintain a viable timber industry in Southeast Alaska and RS2477 fight to gain access to historic trails and transportation routes. It has been a long-time supporter of congressional and presidential approval to develop in ANWR.

The group is currently engaged in an ambitious effort to join with large member organizations like Arctic Power in order to work effectively on issues of common interest. The effort is being spearheaded by Jeff Harris, PFUSA's executive director, whom I met while in Salt Lake City to attend the 1996 Western States Coalition Conference. Jeff has not only asked Arctic Power to become an affiliate member, but also that I represent Arctic Power on the PFUSA Board of Directors. This will create an ideal opportunity to discuss ANWR development with like-minded people who are fighting similar battles.

Given PFUSA's wealth of experience and knowledge, I am excited about the prospects of our new association. I'm convinced these folks can help us in the fight to allow oil and gas development on the Coastal Plain of ANWR. I'll keep you posted on our progress.

Arctic Power's 5th Annual Meeting

Jerome Selby and Mano Frey were unanimously re-elected as co-chairs. Both are beginning their fourth consecutive terms in leading the organization. New members elected included: Mark Begich, Kip Knudson, Tara MacLean-Sweeney, Kyle Parker, Ron Perry, Randy Reudrich, Judy Salo, and Rick Solie.

Annual awards were also presented. George Schmidt, a BLM retiree; Duane Mathes, NFIB; Jeff Gregory, Sourdough Express and Willis Corroon won "Above and Beyond" honors for their untiring efforts in the campaign to open ANWR.

The Arctic Power Office Has Moved