It's become nearly impossible to turn on the news or pick up a newspaper without seeing a story about rising oil prices. The combination of international events and our restrictive domestic energy policies has now pushed oil prices past $104 per barrel. At a time when we import more than 60 percent of our oil supply, the costs and consequences of such high prices pose genuine threats to our economy and security.
Regrettably, this emerging crisis is at least partially of our own making. Despite tremendous oil reserves -- offshore, in Alaska and in the Rocky Mountain West -- many of our lands have been locked up, putting our most promising opportunities out of reach.
This is a clear failure of government. The American people expect their representatives to take an honest look at where increased production is possible; how it can protect against higher prices and supply disruptions; and what it will do to increase our security, restore our trade balance, generate government revenues and create jobs. When we import oil, we export those benefits.
For the sake of our national security, our economy and the world's environment, that has to change. America must produce as much of the oil that it uses as possible. It's this balance, in concert with the resulting revenues and benefits to our manufacturing and transportation industries, that will allow us to truly take control of our energy future.
We can do little to immediately reduce fuel prices. But we can take concrete steps to ensure we don't face even worse problems in the future:
• First, look to Alaska. We have incredible oil reserves. The National Petroleum Reserve-Alaska, 2,000 acres in the non-wilderness portion of ANWR, and the Chukchi and Beaufort seas combined hold at least 40 billion barrels of recoverable oil. That's enough to replace crude imports from the Persian Gulf for nearly 65 years. All three areas are effectively off-limits to new development, however, due to decisions made or continued by this administration.
• Second, end the "permitorium" and bring back production in the Gulf of Mexico. Against court orders, this administration has slowed permits for new deepwater development to a crawl. This could cost the United States an estimated 200,000 barrels per day of new supply if left in place for a year, far more if left in place longer, and tens of thousands of jobs. Onshore producers in the West increasingly face the same situation. Ending their "permitorium" would also be a step in the right direction.
• Third, cut red tape. The president has ordered regulations reviewed to ensure they are cost-effective and not unduly damaging economic growth and job creation, and the Interior Department clearly has its work cut out. In late 2008, Interior officials stated that the "number of required plan and permit approvals is on the order of 25 to 30" for a typical offshore lease. No wonder leaseholders need years to begin production.
• Fourth, focus on a true "all-of-the-above" policy. Alternatives to oil, natural gas and coal are not limited to wind, solar and geothermal. Nuclear, hydropower and efficiency are part of the same puzzle. And our energy policy needs to take advantage of our fossil-fuels endowment -- the largest in the world.
• Finally, shelve bad ideas. With rising oil prices, many seem to have forgotten that the oil industry provides American energy and jobs. Higher taxes and permitting issues deprive companies of a stable operating environment, reducing their willingness to invest in America. The oil industry, like any industry, deserves to be treated fairly. Let it tap into more of America's vast resources -- and make good use of the resulting revenues.
America has options. Responsible development of our oil and other energy resources would create jobs, improve security, raise revenue to pay down the debt, and allow America to invest in new technologies for the future. We can't afford to ignore any one of those benefits -- let alone all of them -- any longer.
Lisa Murkowski is a United States senator from Alaska.
By SEN. LISA MURKOWSKI