Opinions

Alaska offshore oil crucial to U.S. energy plan

The United States is now facing a decision on how to meet its future energy needs. In the coming months, the U.S. Department of the Interior will weigh whether to allow oil and gas exploration on Alaska's Outer Continental Shelf (OCS) to be expanded. Such exploration could set the country on a clear and sustainable energy path for decades to come.

Alaska's OCS contains an estimated 27 billion barrels of recoverable oil and 130 trillion cubic feet of recoverable natural gas. That's more than twice the amount of oil that has been produced on Alaska's North Slope since the Trans-Alaska Pipeline System went online in 1977. Counting its OCS reserves, Alaska likely has more than 30 percent of the nation's recoverable oil and gas. Developing these resources will advance our national interests in three significant ways.

First, increasing oil and gas exploration and production will create good-paying jobs for Americans, particularly if this is combined with the construction of a natural gas pipeline from Alaska to the lower 48 states. Increased production will reduce energy prices and lessen the kind of price volatility that contributed to our economic downturn last year.

Second, developing our own resources means that royalties from production will go to our government, not foreign governments. Today, Americans are concerned about the swelling federal deficit, so it is important to underscore that Alaska's OCS leases have already generated over $9 billion in revenue for the federal government since 1976 and promise much more, provided development is allowed to proceed. Our massive trade deficit will also be reduced if we increase production because we will import less foreign oil.

Third, developing Alaska's OCS will significantly advance U.S. national security and foreign policy interests. As our population grows and our economy expands, we will have to get our energy from somewhere. Right now, too much of our oil comes from unstable regimes hostile to the United States-some of what we spend on Middle Eastern oil ends up funding global terrorist operations. Blocking OCS development will only exacerbate this national security threat.

Some suggest that developing Alaska's offshore reserves, especially in the Beaufort and Chukchi Seas, will harm the environment. However, my state has a strong record of responsible offshore oil and gas development that demonstrates sensitivity to the environment and respect for Native American culture. Over more than three decades, 84 oil and gas wells have been drilled in Alaska's OCS without incident. The federal government has also spent $300 million since 1973 studying Alaska's waters to ensure that oil and gas development occurs responsibly. Moreover, without increased domestic production, we will continue to import more oil and gas than we have to from countries that have far weaker environmental laws than we do.

Alaska is not unique in seeking to tap offshore riches. Other nations, notably Norway and the United Kingdom, have been developing oil and gas offshore in harsh northern climates for decades. The production of these resources has helped maintain global energy supplies, has created thousands of jobs in those countries, and has generated tens of billions of dollars in revenue for those governments.

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The U.S. has long supported offshore oil and gas development in other countries. The Obama administration is even offering political and financial support for Brazil to develop its offshore oil fields. If we are willing to finance offshore development overseas, certainly we should be able to support it domestically.

President Barack Obama and Interior Secretary Ken Salazar have both acknowledged that greater energy conservation and increased use of renewable resources will not do enough to meet our energy needs unless we also increase oil and gas production. The responsible development of Alaska's OCS is essential and should be part of the administration's energy plan.

Gov. Sean Parnell's column appeared Friday in The Wall Street Journal.

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