Fuels

Single Greatest Prospect

U.S. Senate OKs ANWR drilling

WASHINGTON -- The U.S. Senate late last week voted to allow oil drilling in Alaska's Arctic National Wildlife Refuge (ANWR), narrowly rejecting a Democratic attempt to strike the plan from a budget bill, said Reuters.

Drilling supporters said developing the refuge's 10.4 billion barrels of crude would raise $2.4 billion in leasing fees for the government, reduce U.S. reliance on foreign oil imports and create thousands of American jobs; however, it is unclear whether a final version of a federal budget-cutting package can be approved by both chambers.[image-nocss]

The U.S. House of Representatives plan would open ANWR to drilling, but also aims to cut politically sensitive programs such as food stamps and Medicaid.

"This vote today sends a signal to OPEC and the rest of the world that America is serious about meeting more of its own energy needs. America will not let our consumers or our economy be held hostage to runaway global oil prices," said Pete Domenici (R-N.M.), who chairs the Senate Energy & Natural Resources Committee.

ANWR is "the nation's single greatest prospect for future oil," said Senate Majority Leader Bill Frist (R-Tenn.).

Opponents said there was not enough oil in the refuge to lower gasoline prices by more than a penny per gallon, and what crude is there would not get to the market for at least a decade. They also warned drilling would threaten ANWR's habitat for migratory birds, polar bears, caribou and other animals.

"America wants a better energy plan than putting a sweetheart deal (for oil companies) in the budget," said Maria Cantwell (D-Wash.), who was the main sponsor the amendment to strike the drilling language. "Let's not pollute one of the last great remaining wildlife refuges in America," she said, referring to more than 500 oil spills that occur annually on the nearby Alaskan North Slope.

The Senate voted 48 (yes) to 51 (no) on her amendment to remove the ANWR provision from the budget bill.

Lawmakers also voted 83 to 16 to ban ANWR oil from being exported to China and other countries to ensure the crude stays in the U.S. market.

"There is no assurance that even one drop of Alaskan oil will get to hurting Americans," said Ron Wyden (D-Ore.), who opposed ANWR drilling but co-sponsored the oil export ban amendment.

ANWR sprawls across 19 million acres, about the size of South Carolina. Republicans have sought to pry open the refuge to energy exploration for more than two decades, while Democrats and environmental groups have argued that Congress should focus on stricter energy conservation measures.

Under both Senate and House drilling plans, the refuge's 1.5 million-acre coastal plain would be opened for energy exploration, but no more than 2,000 acres of the surface area could be covered by production and support facilities, such as airstrips and piers to hold up pipelines.

The Senate is expected to approve this week a bill cutting federal spending by around $35 billion over five years. The House version seeks to slash more than $50 billion, and a floor vote has not yet been scheduled. The spending cuts are intended to help reduce the federal budget deficit.

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