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March 2000

Vol. 5, No. 3 Week of March 28, 2000

Alaska senators introduce ANWR coastal plain drilling legislation

Kay Cashman

PNA Editor-in-Chief

Rising domestic gasoline prices caused by foreign production cutbacks have prompted Alaska’s two Republican senators to introduce federal legislation to open the coastal plain of the Arctic National Wildlife Refuge to oil development.

Alaska Sen. Frank Murkowski, chairman of the Senate Energy and Natural Resources Committee, wrote the legislation. He and Alaska Sen. Ted Stevens were joined by 30 senators, most of them Republicans.

In mid-February, Murkowski had indicated he might re-introduce his bill to allow seismic testing on the 1.5 million acres coastal plain, despite the fact that Alaska Congressman Don Young had previously filed HR 2250, which would effectively open the coastal plain to drilling.

That was prior to several Congressional committee hearings about high gasoline and heating oil prices.

Throughout those hearings, Republicans blasted away at the Clinton administration for a drop in domestic oil production and a steady rise in foreign imports.

In a Feb. 24 hearing before the Senate Energy and Natural Resources Committee, former Energy Secretary James Schlesinger told members that the recent rise in the price of gasoline, heating oil and diesel fuel shows the nation needs to stimulate production. That includes opening the Arctic National Wildlife Refuge in Northeast Alaska to oil and gas exploration and development, he said.

“If we want greater domestic production, we will have to protect domestic producers,” he said.

Schlesinger, now a senior adviser to Lehman Brothers in Washington, was the lead witness at the hearing.

No more low oil prices

Schlesinger and others said they do not foresee a return to year ago prices, when crude was fetching less than $10 a barrel and gasoline was selling for less than $1 a gallon (see related sidebar to this story). Investments in exploration and development will increase once domestic producers are confident oil prices will stabilize around $20 a barrel, they said.

Following two days of hearings in the Senate Energy and Natural Resources Committee in late February, Arctic Power Executive Director Cam Toohey told PNA that his organization was seeing a definite shift in the attitude of many members of Congress regarding drilling in ANWR, even amongst senators and representatives previously opposed to drilling in the refuge.

Republican senators speaking at a press conference March 8 continued to condemn the Clinton administration’s energy policy ands continued opposition to opening the coastal plain to leasing.

“We need a president who will stand up to the extremists and let us produce oil and gas in America, said Sen. Phil Gramm, R-Texas, one of the supporters of the ANWR legislation.

The country now imports 56 percent of its oil, and the Energy Department said that could rise to 65 percent within two decades.

“The only offset to (growing foreign dependence) is ANWR,” Alaska Sen. Ted Stevens said at the press conference.

Bush supports ANWR bill

Two days later, on March 10, the Associated Press asked the presidential candidates, “Should oil exploration be permanently banned in Alaska’s Arctic National Wildlife Refuge?”

Democrat candidate Al Gore said yes; Reform Party candidate Pat Buchanan said no; and Republican candidate George W. Bush said, “Our country better become less dependent on foreign crude. That’s why I am for the exploration of ANWR.”

Babbitt, environmentalists condemn bill

The coastal plain of the refuge is regarded as the most promising site in North America for a major oil discovery. It will take an act of Congress to open it to leasing.

Interior Secretary Bruce Babbitt issued a statement Match 8 condemning the ANWR development bill.

“There is a time and place for oil exploration in Alaska, and we have permitted environmentally sensitive oil exploration in a large area of the National Petroleum Reserve-Alaska, an area set aside for that purpose,” he said.

Babbitt said he is recommending that Clinton oppose efforts to allow ANWR drilling.

Environmentalists also attacked the legislation.

“It’s unfortunate that Senator Murkowski would prey on the fears and hardships of the American people to push for oil drilling in one of our nation’s natural treasures,” said Adam Kolton of the Alaska Wilderness League.

—The Associated Press contributed to this story





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