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Will Drilling in the ANWR Really Help?

In this world, there are a number of questions that have no easy answers. There are arguments both for and against these topics, but there remain no clear deciding factors. In these cases, the answer becomes a judgment call – and the judgment is very subjective. So it is with this question – “Will drilling in the ANWR really help?”

The ANWR stands for the Arctic National Wildlife Refuge, which is located in Alaska. The ANWR is an area of over 19 million acres of protected land along the Northern Slope of the state – an area that is larger than a number of other states combined. Recently, it has been proposed that we drill for oil in section 1002, an area of about 1.5 million acres.

The primary arguments for drilling are that the estimated oil reserves here could be between 5.7 and 16 billion barrels. This would mean a substantial increase in our domestic reserves and could help the American economy by lowering the foreign trade deficit between now and 2030, in an amount somewhere between $135 billion to $327 billion. Drilling in the ANWR has wide support among the people of Alaska, and proponents of drilling point out that the area that would be involved in the drilling would have a smaller environmental impact than the Los Angeles International Airport.

On the other side, the criticisms against drilling in the ANWR are aimed at the nature of the oil experts speculate will be found in the area. Unlike in Texas, where there are liquid oil reserves you can drill down into, the oil in the ANWR is in oil sand and oil shale. Recovering it would require drilling not straight down, but at several different angles underground. Environmentalists argue that this would impact the area above ground in a negative way. There’s also the matter of extracting the oil from the sand and shale, a process many argue is not as well developed as the oil companies would like us to believe.

Finally, there’s the matter of the native Alaskan peoples who oppose drilling in the ANWR, saying that it will cause cultural harm that can’t be repaired. They worry that drilling will impact the native food animals that make up 60 to 70 percent of their diets. In fact, representatives of more than 229 villages have officially opposed any development in the ANWR. Several native villages have found issues with the oil companies’ proposed ability to protect native species, leading the Kaktovik village to pass a resolution against Shell Oil declaring it necessary to take legal and other actions to defend the community.

With these kinds of arguments, it’s easy to see why the issue of drilling in the ANWR is in political limbo at the current time. However, arguments from both sides may become moot, as current president Obama has said that he will not support drilling in the ANWR. Only time will tell whether he sticks by his decision or whether the issue will simply be raised again once his time in office is over.

Proposed Fuel Efficiency Standards – Will They Affect You?

Gas is becoming increasingly more expensive. It wasn’t that long ago that regular gas climbed to more than $4.00 a gallon, and gas prices are now slowly inching up again. With this in mind, and because petroleum products are a finite resource, the Obama administration has proposed new fuel efficiency standards. We all like the idea of better gas mileage so that we get more for our money, but what do the proposed fuel efficiency standards really mean for you?

To give you an idea of what exactly we’re talking about, the Transportation Department wants manufacturers to get to an overall fleet average of 35.5 mpg by 2016. There are some other specifics – passenger cars have to hit 39 mpg and light trucks should hit 30 mpg if these standards are adopted. To illustrate just how big a job this is, there are only six cars that are on sale right now that offer an estimated mpg of 35.5.

First, these new standards likely mean smaller cars. This is a simple matter of mathematics – a smaller lighter car is a more fuel efficient car. This may be a dramatic change for Americans who still like their roomy automobiles. What’s worse, from a consumer’s point of view, is that these new smaller cars may cost more than $1,000.00 more than trucks or SUVs, even though they are smaller.

However, smaller, lighter cars aren’t the only way manufacturers are trying to meet these goals – electric cars and hybrids are in the pipelines of every major manufacturer. Besides this, companies are looking at clean diesel cars, with the Volkswagen Jetta TDI being a pioneer in this market. In the immediate future, there are also extended-range electric plug-ins that will rely on a rechargeable battery for short trips and have a combination of gas power and electric motors for longer journeys.

Other developments in clean diesels, which will use technology that filters out particulate matter, are another approach. Overall, these cars will offer better fuel economy than the traditional diesel engines, along with other benefits for consumers and the environment.

But as per usual government efficiency, many of the details of the proposed standards haven’t been worked out yet. Still to be answered is how the electric cars will be figured into the fleet average. Given that an electric car uses no gasoline, would a single electric model that no one is buying lower the overall fleet average to a point where the entire company is within the set standard? Or will some manufacturers look to alternative fuels like biodiesel to meet their standards? But isn’t that just swapping one problem for another? No one knows yet, and no one is saying anything official on the subject.

But however fuel efficiency standards are imposed – whether by governmental mandate or through shifting consumer demand for more fuel-efficient vehicles – it’s clear that something needs to give. Even if families can afford to pump their giant SUVs full of $4.00/gallon + gasoline, should other citizens suffer increased smog and emissions for their enjoyment? Should soldiers risk their lives every day to protect a resource we place an exorbitant demand on? There’s no right or wrong answers to these questions – but it’s clear that they will need to be address in the next few years.

Oil Nearing $60/barrel

After a dramatic falloff in the price of oil, it seems oil is creeping back up. It just closed over $58/barrel. Many had forgotten about fuel efficiency, but it seems it may come back in the news in short order.

Oil Now Well Over $100/Barrel

While oil prices had previously receded to back below $90, oil prices have surged lately. Oil is now well over $100; current trading is around $105. Part of the reason for the increase in oil prices is the continued decline of the dollar. Since the dollar is less valuable, global commodities become more expensive to buy. Also, many investors appear to be buying oil as an investment itself. This is driving up the overall demand for oil.

Some believe oil might come down in price. For example, legendary oilman T. Boone Pickens believes oil will go back down to $85 soon because of the US recession. However, he sees oil going back to over $100 by the end of the year.

Whatever the reason may be, it seems we may be looking at pricier oil and pricier gas. More than ever, it just goes to show the benefits of getting good gas mileage on your car.

Crude Oil Prices Going Higher And Higher

The price of oil keeps going higher and higher. Oil has reached almost $100 a barrel. We all know what that likely means for gas prices.
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