From AlaskaWild Update #218, June 4, 2004

WHY THE ARCTIC REFUGE WILL NEVER HAVE ANY REAL IMPACT ON GAS PRICES

Despite the environmental, consumer, and economic problems with oil dependence, the Bush administration is allowing Big Oil to drive America's energy policy toward greater consumption and higher prices. The Bush-Cheney energy plan won't make the U.S. less dependent on oil and other fossil fuels, won't reduce the price of a gallon of gas, and won't protect consumers from future price spikes. Their solution to the problem - to pass the disastrous energy bill rejected by the Senate in November - would actually increase gasoline prices and do nothing to protect consumers. Their proposal to drill in the Arctic National Wildlife Refuge would destroy a pristine wilderness area for six months worth of oil that wouldn't reach consumers for ten years.

The best way to protect consumers from high gasoline prices is by regulating the oil industry and reducing demand. The Bush-Cheney energy plan does not expand the current antitrust laws to cover this blatant price manipulation, so corporations will continue to gouge consumers at the gas pump. Increasing auto fuel economy to conserve oil is a strategy with a proven track record, but the Bush administration has steadfastly opposed requiring the auto industry to do its part and use existing technology to significantly increase miles per gallon in our cars and trucks.

The big oil companies and their pawns in Congress and the White House will clearly stop at nothing to drill in the Arctic National Wildlife Refuge and are up to their old tricks again. The fact that they have decided to waste time on this dead end scheme after the Senate made it known - yet again -- last year that Arctic drilling is not acceptable energy policy, shows they are listening to corporate special interests rather than to the American people, who strongly support keeping the Arctic Refuge protected.

This issue has nothing to do with gas prices - it's all about politics. The Department of Energy says that drilling in the Arctic would have no impact on gas prices.

The main reason gas prices are so high is because of our over-dependence and increasing demand on oil - whatever the cause. The only way to reduce the burden of high gas prices is to reduce demand. Any so-called "solutions" to high gas prices that include drilling in the Arctic Refuge as part of the fix is nothing more than election year pandering and politicking. If politicians were serious about helping us pay less for gas, they would focus on ways to help us buy less of it.

Drilling the Arctic Refuge would have no impact on U.S. oil prices. Even if one accepts the highest ranges of Arctic Refuge petroleum potential, there would still be no impact on prices at the pump.

It would take at least a decade to bring to market any oil that might be discovered in the Arctic Refuge; exploration, discovery and assessment, field design and installation and pipeline design and construction are all time-consuming endeavors.

At a time when the oil industry is laughing all the way to the bank, the last thing Congress should do is hand out billions in new tax breaks. Unfortunately, Senator Frist has added the "Energy Tax Incentives Act" to corporate tax legislation pending on the Senate floor. There is no evidence that $6.5 billion in new and expanded tax breaks will do anything but pad the oil and gas industry's bottom line. The Senate should reject these outrageous handouts.