CEA: Study Confirms Significant National Value of Developing America’s Domestic Resources
Benefits to Include Increased Oil & Gas Resources, Enhanced Energy Security,
Thousands of New Jobs and Billions of Income, Government Revenue
WASHINGTON – The development of oil and gas resources in Alaska’s Arctic outer continental shelf (OCS) could produce almost 10 billion barrels of oil and 15 trillion cubic feet of natural gas – creating an annual average of almost 55,000 new jobs and $145 billion in new payroll nationally, as well as a total of $193 billion in government revenue through the year 2057 – according to a new study by the Northern Economics’ and the Institute for Social and Economic Research (ISER) at the University of Alaska.
“Considering the last six weeks of turmoil throughout the Middle East and now in Libya, this study once again reminds us of the need to improve access to America’s domestic petroleum supplies,” said Consumer Energy Alliance (CEA) President David Holt. “Instead of continuing down the path of dependency to foreign oil supplies and weak energy security, our leaders need to adopt an ‘all of the above’ energy approach that leverages our resources – from Alaska to the Gulf and across the nation – to create an economy-boosting energy plan for America.”
About 77 percent of world oil reserves are owned or controlled by national governments and the U.S. currently imports over 60 percent of its crude oil. Northern Economics estimates that Arctic offshore development could cut this by about 9 percent over 35 years.
Added Holt: “Impediments to more American energy continue to be found above ground, not below. We know we have the resources to generate these jobs, revenue and economic growth – as demonstrated by the billions of dollars already invested in the Alaska OCS. Yet, companies are being prevented from acting on these investments by permitting delays, frivolous litigation and other makeshift roadblocks.”
“America cannot continue to rely on unstable, foreign sources of energy while declaring the nation’s abundant resources off limits. Until policymakers begin promoting the development of domestic energy supplies, U.S. consumers will become increasingly dependent upon foreign sources of oil and energy-dependent industries – like the trucking industry – will continue to experience volatile energy prices,” said Chairman of the Board and vice president & regulatory affairs counsel for the American Trucking Associations Rich Moskowitz. “As confirmed by this study, Alaskan energy remains a critical part of our goal of increasing the nation’s supply of affordable, reliable energy and strengthening U.S. energy security.”
According to the report, increased OCS production in Alaska would also extend the operating life of the 800-mile Trans-Alaska Pipeline System (TAPS). While today it delivers 14 percent of domestic oil production to refineries on the West Coast, TAPS is anticipated to meet operating difficulties when throughput falls below 500,000 barrels per day.
“With consumers paying about 50 cents more a gallon at the pump than a year ago and food prices escalating in recent months, it’s clear that we need a drastic change in U.S. energy policy. Given the current political turmoil in the Middle East and America’s continued dependency on foreign oil imports, it is absolutely essential that we develop Alaska’s OCS to increase domestic production and keep TAPS running,” Holt concluded.