A new breakthrough study analyzing the oil reserves contained under Alaska’s Outer Continental Shelf (OCS) reveals that the state could be the eighth largest oil producer in the world.
The amazing data meticulously compiled by the authors—the consulting firm Northern Economics and the University of Alaska-Anchorage’s Institute of Social and Economic Research—shows that aggressive drilling of Alaska’s OCS could tap into more than 15 trillion cubic feet of natural gas and about 10 billion barrels of oil.
The report points out that such a venture could create upwards of 55,000 high paying new private sector jobs with an annual payroll of nearly $145 billion nationally. The new wealth created would provide projected tax revenue of nearly $200 billion through 2060.
The Alaskan OCS will have a huge, positive impact upon the American economy. America’s growing need to import both oil and refined gasoline makes it imperative that we become energy self-sufficient.
Government energy policies are draining America’s wealth
During the past decades politics and government energy policy has made it increasingly difficult for Americans to have access to the country’s own resources. This has led to the largest transfer of wealth in history enriching OPEC nations and helping to line the pocket of America’s competitors and enemies with cash taken from the American taxpayer.
Richard Ranger, a senior policy adviser with the American Petroleum Institute said, “America will need all forms of energy to get our economy back on track, and that includes oil—we can either produce it here and create more American jobs or import it and create jobs elsewhere.”
Artificial “economy of scarcity”
An artificial economy of “natural resources scarcity” has been constructed by the federal government and some coastal state governments since the 1970s. Politically driven by special interest groups, it has caused energy shortages and higher costs for everything petroleum and energy related impacting the underlying costs of transportation, agriculture, manufacturing, electrical generating costs and the long term buying power of the American currency.
Energy and access to it is the driving force behind the creation of wealth, economic growth and maintaining a robust and expanding middle class. Special interest groups using federal agencies and the federal courts have systematically deconstructed the American peoples ability to be self-supporting.
This constant undermining of the ability to produce inexpensive an plentiful oil, natural gas and coal has caused draconian austerity programs to be developed and belt-tightening policies created to meet the fallout of the original government policies that initiated the artificial crisis.
“The administration and Congress need to adopt an ‘all of the above’ energy approach that leverages our offshore resources in Alaska to create an energy plan for America that boosts, rather than inhibits, our economy,” Ranger said.
According to API, roughly three-quarters of global oil reserves are under the control or influence of various national governments.
Current government energy policy dangerous
Currently, the US finds itself in the uncomfortable—and some say dangerous—position of importing more than 60 percent of its crude oil needs. Much of the oil is purchased from politically unstable countries like Nigeria, or regimes that hate us like Iran and Venezuela. Drilling Alaska’s OCS, the study says, could cut U.S. imports almost 10 percent over the next 35 years.
With the huge new proven reserves of shale oil—more than all the reserves in Saudi America—the gigantic amounts of untapped oil in the Gulf, and off the California and Florida coasts, America could actually be 100 percent self-sufficient.
The US also has more coal than any country on Earth—China comes in a distant second—and possibly more natural gas reserves than most of the rest of the world combined. The US can completely provide for its own energy needs without the national wealth being drained into the coffers of international producers.
US government only roadblock to energy prosperity
The only roadblock to more wealth, more jobs, and cheaper energy is restrictive government policies.
“Given the current political turmoil in the Middle East and increased demand from a slowly growing economy, it is more essential now than ever before that we develop Alaska’s OCS to increase domestic production,” Ranger explained. “Increased OCS production in Alaska would also extend the operating life of the 800-mile Trans-Alaska Pipeline System, a critical lifeline of domestic energy for America.”