Wednesday, July 23, 2008

Why Drill in ANWR?

How does drilling in ANWR or offshore contribute to lower fuel prices? There is no apparent connection between what the oil companies are saying and doing (or not doing) and the current, “drill it now mantra”. The American Petrolem Institute (API), a consortium of American petroleum producing companies states that drilling on the continental shelf or ANWR is unlikely to provide Americans with more oil for 7 to 10 years. If they were given permission to drill and they did drill, the anticipated amount of oil would alleviate 2.5 years of U.S. fuel needs 10 years down the road. Then what? Major oil companies already own drilling rights to 68 million acres of Federal land, but refuse to drill. Why not? The United States exported 1.6 million barrels of refined fuel products per day in the first 4 months of 2008. Exports continue, I just can not find figures for the last 3 months. If we are facing a fuel shortage, why are we exporting it? Fuel refining facilities are not being upgraded or expanded. There are no immediately available piplelines or ships to move additional crude oil. If crude oil supplies were to become available we could not move it or refine it. So, how does drilling offshore or ANWR now solve our fuel problem and lower gas prices?