EDITORIAL: Bountiful untapped energy

Americans have become open to anything that would lower the cost of soaring energy and oil prices. Energy independence and the impact of foreign energy supplies on American security have become a major policy concern. Now, President-elect Barack Obama has nominated Steven Chu as energy secretary, Lisa P. Jackson as head of the EPA and Carol Browner in a new position as his energy “czar.” His focus is on conservation, global warming and alternative energy sources like wind power rather than on traditional sources of energy like natural gas and oil.

We believe the new appointees should be focused on making use of domestic oil supplies and other natural resources already present to keep America energy independent.

A new study from ICF International commissioned by the American Petroleum Institute, a trade association representing all aspects of the oil and gas industry, provides important information on the issue of energy independence. API’s survey says “America’s vast domestic oil and natural gas resources that had been kept off-limits by Congress for decades could generate more than $1.7 trillion in government revenue, create thousands of new jobs and enhance the nation’s security by significantly boosting domestic production.”

The study focused on untapped crude oil and gas supplies in the Outer Continental Shelf, the Arctic National Wildlife Refuge (ANWR) and the Rockies. Specifically, if drilling were allowed in ANWR by the new Congress and new president, and a portion of federal lands in the Rockies, domestic crude oil production would climb by 2 million barrels per day in 2030 or 36 percent by 2030, API said. That would offset a fifth of the nation’s imports. Natural domestic gas production would rise by 10 percent, which would allow America to be much less dependent on foreign oil and energy sources.

This month, in fact, per-barrel oil prices rose slightly by $1.45 or 3.4 percent, according to MarketWatch. The increase was due to speculation, not action, that Saudi Arabia may cut production of oil. “This study also underscores how the oil and natural gas industry can enhance America’s energy security and help solve economic problems by increasing production of our nation’s vast oil and natural gas resources,” said API President and CEO Jack N. Gerard.

Mr. Obama has stated that he is open at least to offshore drilling as part of a larger energy package. One blockade for Mr. Obama is that leftist “greenies” will protest violently against offshore drilling or use of any federal lands for energy sources like natural gas and oil. But Mr. Obama’s new energy team should cede to the results of the API study, as it indicates how America could achieve much greater energy independence and security by using untapped federal lands for drilling. Mr. Obama should consider not just drilling on the outer shelf, but also in ANWR and the Rockies.