Alaskans across the entire social and economic spectrum spoke out in force Tuesday, Nov. 9, in support of oil and gas development in Alaska's Outer Continental Shelf. They came to a public hearing in Anchorage with a sense of urgency, presenting compelling testimony in favor of affirming Lease Sale 193.
Alaskans demonstrated how much they care about their state's economic future and the confidence they have in the safe and responsible development of the potentially enormous oil and gas resources in the Chukchi Sea. The hearing was packed and some stood for three hours waiting to comment.
Two-thirds of those attending wanted to put federal agencies on notice that they are not going to sit back any longer as endless litigation, delays, and gridlock stymie future development. With ANWR off the table and future development in the petroleum reserve so uncertain, they see the Alaska Outer Continental Shelf as the last opportunity to reverse declining Alaska production. They understand that the sustainability of the Alaska economy will depend on some combination of oil production from these federal areas, which represent the nation's best onshore and offshore prospects.
The hearing was held to hear public comment on the Draft Supplemental Environmental Impact Statement for Chukchi Sea Lease Sale 193 held in 2008. The SEIS provided new analysis as directed by a federal court in a July 2010 order. The SEIS concluded with a recommendation that the sale be affirmed.
Lease Sale 193 is the most successful oil and gas lease sale in Alaska's history, generating $2.7 billion in high bids.
The Alaska OCS could hold up to 29 billion barrels of oil. In comparison, total North Slope production from state lands over the past 33 years has totaled 16 billion barrels. Access to the federal resources is critical, given TAPS is running at one-third of its 1988 peak and could be uneconomic to operate after 2020 without additional throughput. At that point, the state could lose 90 percent of its revenue base and much of its economy if the pipeline is forced to shut down prematurely.
It was very apparent Alaskans attending the hearing care deeply about the state's future economy and environment. Two especially compelling testimonies came from residents of Wainwright and Barrow. Both residents stated how important oil revenues are to their communities. Oil revenues, they said, provide jobs in the community, but also fund many infrastructure projects, including schools, roads, community buildings, and the very basic necessities.
Environmentalists responded by claiming a time-out is needed to conduct more studies. Others noted Alaska's North Slope and OCS are now perhaps the most studied energy basins in the U.S. In the past decade alone, over 250 studies have been funded, with the majority focused on the Beaufort and Chukchi Seas. More than a half billion dollars have been spent on more than 5,000 studies since 1973. Others emphasized: 1. Alaska depends on energy production for the bulk of its economy; 2. The nation will import all the oil it does not produce domestically; 3. America continues to expand its percentage of imported oil; 4. the OCS can sustain Alaska's economy for generations, creating 35,000 new jobs.
Shell has spent $3.5 billion in pursuit of an Arctic exploration program and is ready to commit billions more. Yet it waits on an administration to establish an Arctic policy to allow the permitting process to proceed, and it waits upon the courts to review an endless barrage of litigation.
Many attending the hearing urged the Obama administration to move forward, expressing concern that the permitting process and incessant litigation are chasing American industries overseas and slowly sinking the American economy, while other nations benefit from our inactions and anti-business policies.
Energy development can occur safely in the Arctic, and mitigation measures can be put in place to address local concerns. Alaska has a bright future and has much to contribute to the nation with its abundant resources. All that is required are key decisions encouraging development of these resources. Nothing less than Alaska's economy is at stake.
Carl Portman is deputy director of the Resource Development Council for Alaska.
By CARL PORTMAN