Feds release almost 4 million acres in Alaska for drilling
posted at 9:00 am on July 17, 2008 by Ed Morrissey
The Bush administration didn’t waste much time after its lifting of the executive ban on off-shore drilling to make its second big gesture towards the oil markets. Late yesterday, the Bureau of Land Management opened 3.9 million acres of land in Alaska for drilling and exploration. The land had already been reserved for petroleum production, but had been kept in limbo by complaints and legal action by environmentalists:
The US federal government on Wednesday said it would open 3.9m acres of land in a designated petroleum reserve in Alaska for drilling as a means to help curb rising petrol prices. …
But the Bureau of Land Management, an agency within the US Department of the Interior, said the Alaskan land that will now be offered requires no other approvals and will be up for leasing in the autumn.
The site was set aside decades ago but development was blocked by lawsuits from environmentalists concerned about disrupting wildlife. The government has tackled these fears, making it a condition of the lease by oil and gas companies that polar bears, waterfowl and caribou are protected.
According to the New York Times, the field could contain as much as 3.7 billion barrels of oil. It could start producing oil by 2010, far shorter than the seven years that opponents of drilling claim for both off-shore and interior use. The added production will also help shore up the Alaskan pipeline, which has to have a minimum level of oil flowing in order to keep it from freezing in the winter.
Oil prices have tumbled the last two days since Bush lifted the executive order. The price on a barrel of oil fell more than $10, the largest such reduction in almost 20 years. Analysts in the media claim that the prices have fallen due to “demand destruction” and the fears of a long economic slowdown in the US, in which less energy will get expended. However, that doesn’t take into account the rising demand from China and India, which is expected to grow — and so a lack of American demand doesn’t make a lot of sense as the reason for the sharp drop. The markets may have begun to factor in more American production — and more moves to open resources in the US could add to the momentum.
The Bush administration is on the right track. Congress needs to follow suit — immediately.
Blowback
Note from Hot Air management: This section is for comments from Hot Air's community of registered readers. Please don't assume that Hot Air management agrees with or otherwise endorses any particular comment just because we let it stand. A reminder: Anyone who fails to comply with our terms of use may lose their posting privilege.
Trackbacks/Pings
Trackback URL
Comments
Comment pages: « Previous 1 2
The silver lining in that cloud is the trackback from those filing suit to their political support. The donks can’t hide from this one, although they might not be the only ones involved. Shine the spotlight on them all.
a capella on July 17, 2008 at 12:11 PM
In order for Nancy Pelosi to stick her head anywhere else she would have to pull it out of her ass first…
sabbott on July 17, 2008 at 12:11 PM
One person cannot hold a country hostage. If it were a Republican, Alec Baldwin would call for her public stoning.
fossten on July 17, 2008 at 12:16 PM
Sorry, had to update it a bit with the Modern Democrat worldview…
Romeo13 on July 17, 2008 at 12:17 PM
Pelosi’s latest banality attempting to justify energy obstruction is “no drill, no spill”. Well, based on that same idea (that the world must be run for the convenience of government and that mistakes and errors are reserved exclusively for government), she might outlaw food to simplify sewage disposal and/or make it totally unnecessary!!
So our retort to Pelosi’s silliness should be something like:
DRILL…DON’T KILL!!!
landlines on July 17, 2008 at 12:23 PM
If “they” go ahead with this ______________ will move out of the country!
Dread Pirate Roberts VI on July 17, 2008 at 12:24 PM
Don’t get your hopes up boys – there’s nothing there.
In the 70′s USGS contracted with Husky Oil to drill exploratory wells all across the NPR, and Shell sunk three wells just across the boundary on indian land. There was no oil. Every well came up dry. I, personally, flew over the whole northeast sector at 30 feet putting fertilizer on old winter cat trails. (The most harebrained scheme a bureauocrat ever came up with but I made enough money to buy my wife’s dream house with cash – I think she even still owns it.)
I also did the final environmental clean-up so USGS could turn over responsibility of the land to BLM. (Second wife made out like a fat rat on that deal.)
The NPR is a pipe dream. This is a scheme by BLM to give the land back to USGS because BLM doesn’t want to expend any more resources on it.
lonesomecharlie on July 17, 2008 at 12:32 PM
You hit the nail on the head, Ed. (hey…that rhymes.)
Wise Golden on July 17, 2008 at 12:36 PM
Only wait and see what happens. Frivilout lawsuits up here are being countered now…. especially envirionmental.
upinak on July 17, 2008 at 12:40 PM
I say punch holes in mother erf until she’s bone dry.
madmonkphotog on July 17, 2008 at 12:42 PM
That is great that you were there at that time.
Husky Drilling did have some dry wells, but there were a few good ones. Umiat wells are a great pressurized area, highest in the world possibly.
But one problem, USGS has totally dropped their Oil Developement here in Alaska and is going more geothermal (pipedream). BLM is tired of the land in General up here…
upinak on July 17, 2008 at 12:47 PM
When will we be able to convert eviro-nuts into fuel?
They can all take one for the team and spare the world their excessive co2 , carbon foot print and save a few animals in the process.
Mojack420 on July 17, 2008 at 12:49 PM
Maybe we should think about building a few refineries while were at it, and getting rid of the 10,000+ different blends of gasoline so we can ship gas from state to state……..
Seven Percent Solution on July 17, 2008 at 12:52 PM
Amen!
Karmi on July 17, 2008 at 12:59 PM
second look at third term for George Bush!
james23 on July 17, 2008 at 1:04 PM
Saudi crude exported through the Straits of Hormuz would halt entirely if the United States sought this objective.
gabriel sutherland on July 17, 2008 at 1:04 PM
So what? Not like China won’t buy the oil.
upinak on July 17, 2008 at 1:10 PM
We need to so badly get out to the public that it is the DOnks doing that has given us $4+ gas prices.
we need a nonprofit swiftboat type ad that would let ordinary (politically apathetic yet pissed at gas prices) Americans who has the ral blame here. then we need to show it 24 hours a day on every channel and station.
-Wasteland Man.
WastelandMan on July 17, 2008 at 1:11 PM
…like showing the gas prices in 2006 before the congress and senate became dim ruled, and then after. Along with any other changes for the better /sarc that have happened since the take over.
This does not however excuse the crappy way republicans were acting when they were in the majority!!!!!!! They need to shape up too!
-Wasteland Man.
WastelandMan on July 17, 2008 at 1:13 PM
Then why not start it Waste? get other Bloggers to join? Then find someone who is “free” and willing to do a small effective website for the movement?
It has to start somewhere!
upinak on July 17, 2008 at 1:51 PM
The only people who can vote Pelosi out are the voters of San Francisco. So long as those people ride busses and take cabs, they’ll gladly stick it to the rest of us moral degenerates.
I don’t have a solution. I suppose if enough conservatives find a way to quietly move to SF, perhaps moving in as college students looking for work, they might be able to overthrow her. But I doubt it.
A better chance is an ethics scandal so juicy that even the MSM can’t ignore it, and one that would force Pelosi to step down as Speaker. Anyone want to set up a honeypot? Maybe catch her engaged in some business deal with (gasp) Conservatives?
njcommuter on July 17, 2008 at 2:12 PM
Good move, GWB! Keep up the pressure.
Sure, the Dems will block as much as they can. But I think even the Stalinists are sensing the danger in bucking voter sentiment so strong as the 70% who favor drilling.
Drill here, drill now, pay less.
petefrt on July 17, 2008 at 2:20 PM
Unaffordable gas will give the left a major victory on a number of levels. It could virtually mandate mass transit and car-pooling. And as you say, coastal urban liberals will be sticking it to the rest of us in Middle America.
petefrt on July 17, 2008 at 2:28 PM
Not at all. Update for accuracy acknowledged.
fossten on July 17, 2008 at 2:56 PM
While true, it is *also* true that in a time of war, our potential enemies would have a much more difficult time shutting off our oil supply if it were truly *our* oil, as opposed to Saudi oil coming in on big fat targets, erm, tankers.
Now you’re adding further complications into the mix – ‘war’ or other similar conflict placing greater risk on resource supplies. These are strategic decisions that should be planned for, of course, but they are not what we’re talking about right now.
Economically, oil is fungible, so whatever we add to the supply can be drawn down at any point in the global economy. There are certain price advantages to our own supply though – namely that a domestic supply will incur lower logistical costs – but this doesn’t preclude selling it to the highest bidder, as there will be other stock not being used that is available at a discount.
However, I expect that it would be advantageous to use domestic oil for our national market, which will push some slack into the world market, causing prices to fall for everyone.
How hard, for example, would it be for France to seize the North Sea platforms?
ROFL Are you serious? Against the British Navy?
LimeyGeek on July 17, 2008 at 11:12 AM
—-
Limey,
Umm, don’t know if you’ve noticed, but there *is* a war on. Been on for a while now.
As for grabbing the North Sea platforms, I think you’ve answered my point, though I’m not clear that you’ve grasped it. The point being, it’s your backyard, you control it. Iraq is not my backyard, neither is Iran. If anyones’, they’re China or India’s yard… See what I mean?
Mew
acat on July 17, 2008 at 3:00 PM
The fact that the new oil won’t hit the market for a couple of years does not mean that current prices will be unaffected. Suppliers of oil that can be accessed now can sell either now or wait and sell in the future. The prospect of increasing future supply increases the attractiveness of selling before those new supplies come on stream. Current supply increases, current prices fall.
pussum207 on July 17, 2008 at 4:10 PM
pussum207 on July 17, 2008 at 4:10 PM
Yep. Drudge linked a story earlier today by the AP that oil dropped for 3 days straight. Of course, there was no mention in the article of Bush’s actions toward increasing supply as a reason for the price decrease.
I’m not an expert on the oil industry, but I will be very surprised if oil stays over $100/barrel if we can get a few of these actions pushed through. Don’t know if we will see $40/barrel again, but $75/barrel and $2.50 gas will seem like a bargain if we can get there again in the next couple of years.
cs89 on July 17, 2008 at 5:17 PM
Don’t get your hopes up boys – there’s nothing there. . .
The NPR is a pipe dream. This is a scheme by BLM to give the land back to USGS because BLM doesn’t want to expend any more resources on it.
lonesomecharlie on July 17, 2008 at 12:32 PM
Can one of the other oil guys on this board comment on Lonesomecharlie’s dour prognostication? We need some more expertise here!
Also, color me ignorant, but I don’t understand why, if the President can release the leases to this Alaskan land, what role the Congress would play? Why are we worrying about Miz Nancy at all?
MrLynn on July 17, 2008 at 5:30 PM
Erratum: Lonesome’s comment was supposed to be a quote. Why can’t we edit?
Ed: Can you answer my last question? Thanks.
MrLynn on July 17, 2008 at 5:31 PM
I’ve got a hunch this is an action the President knew he could take unilaterally, and he’s forging ahead. It will also increase pressure on Congress for the actions they will have to participate in- He dropped the Executive ban on OCS, but Congress has a ban in place as well that they will have to act on to open it up. Similar situation with needed Congress’ participation on ANWR.
If he can get the “big Mo” with opening up what he can, the “Drill here, drill now” petition, etc. it’ll be harder for the Dems in Congress to oppose further action- especially if oil prices keep dropping.
Even Nancy can’t completely refuse to cooperate if continued news stories talk about oil dropping below $130, then if it goes under $120, etc.
If we can get someone in the media to talk about Bush’s actions in the same sentence with a drop in gas prices, if and when that happens, it’ll also help. I’m not too optimistic about that one, though.
cs89 on July 17, 2008 at 6:01 PM
Only 7 years to do the right thing. Niiice.
Mojave Mark on July 17, 2008 at 6:06 PM
I thought that Congress represented the people now it’s turned 180 degrees. We all should start screaming like we did last summer about the immigration mess.
mixplix on July 17, 2008 at 6:12 PM
Sadly, I’m of the opinion that Pelosi would use any large drop in oil price to justify doing nothing, saying, “See, there’s no need to drill, the price is dropping all on its own.”
OldEnglish on July 17, 2008 at 7:00 PM
Maybe the San Fran limosine liberals, who may lose their big cars, will finally VOTE HER OUT!
TimothyJ on July 17, 2008 at 8:00 PM
I may be missing something here but I heard nobody speak of this today. Seems this is big news what happened?
flyboy777 on July 17, 2008 at 8:11 PM
Wow…it’s amazing how fast the gov’t moves when they want to.
Maybe that’s where the money for the fence bill will end up going: oil rigs and pipelines. Don’t get me wrong, i want to drill here and drill now. I just want to have a country to give to my grandchildren, not just cheap gas.
Christine on July 18, 2008 at 1:52 AM
The dems and the MSM (but I repeat myself) are spinning like crazy now, and making excuse after excuse for the failures of their destructive ideology.
They can’t shut up, because if they forced themselves to pay attention to something outside their bubble, their heads would implode.
When the MSM is finally forced to admit that Bush’s actions have resulted in lower oil prices (supply & demand), be prepared for meltdowns on CNN and MSNBC.
I doubt we’ll get rid of Pelosi, but if she keeps it up she could lose her majority status.
Merovign on July 19, 2008 at 2:46 AM
The British Navy ain’t what it used to be.
smill1953 on July 19, 2008 at 9:00 PM
Comment pages: « Previous 1 2