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Increase Domestic Oil Production
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 Arctic National Wildlife Refuge (ANWR) I joined in offering H.R. 6107, The American Energy Independence and Price Reduction Act, which would unlock ANWR and allow for limited oil development. Amount of Oil The U.S. Department of the Interior estimates that ANWR contains 9 to 16 billion barrels of recoverable oil. ANWR could provide one million barrels a day, enough to replace our imports from Saudi Arabia. The North Slope of Alaska now provides 16 percent of our domestic oil production, but production is declining. Peak production there reached two million barrels a day in 1980, but has declined to 731,000 barrels a day. Economic Impact Development at ANWR could generate between 250,000 and 735,000 jobs, and increase royalty, leasing, and tax payments. The Office of Management and Budget projects that ANWR could yield between $152 and $237 billion in royalties and taxes. Oil development near ANWR contributed $50 billion to the nation's economy from 1997 to 2004. Environmental Impact ANWR covers nearly 20 million acres and only 1.5 million acres would be opened to development. However, a mere 2,000 acres of that 1.5 million would be affected by drilling. When oil development started on the North Slope, the local caribou heard numbered 3000. It now numbers 32,000 animals – clearly oil development and wildlife coexist in Alaska. Support for Opening ANWR The people of Alaska, the Governor of Alaska, the Alaska legislature, and the Alaska congressional delegation all support ANWR development.  Overcoming Our Limited Refining CapacityAlthough some domestic refineries have expanded, we have not built a new refinery in this nation in 30 years. This lack of refining capacity contributes to the high cost of gasoline. In 1973, there were 268 refineries with a capacity of 13.64 million barrels per day in the U.S., and by 1981, there were 324 refineries with a capacity of 18.62 million barrels per day. By 2006 the number of refineries had declined to 149 with a capacity of 17.3 million barrels per day. Over the period 1981 to 2006, the number of refineries declined by over 50% while the total capacity of the sector declined by about 8%. I am a cosponsor of H.R. 6139, a bill encouraging the building of new refineries. The bill would set schedules for the consideration of permits for refineries.  Repeal Prohibition on Developing Oil ShaleOil shale is prevalent in the western states of Colorado, Utah, and Wyoming. The resource potential of these shales is estimated to be the equivalent of 2 trillion barrels of oil. Using oil shale could save American consumers as much as $20 billion a year. I joined in offering H.R. 6138, repealing the prohibition on funds to issue regulations on oil shale development. Oil shale can be mined and processed to generate oil similar to oil pumped from conventional oil wells; however, extracting oil from oil shale is more complex than conventional oil recovery and currently is more expensive. The oil substances in oil shale are solid and cannot be pumped directly out of the ground. The oil shale must first be mined and then heated to a high temperature; the resultant liquid must then be separated and collected. |
