I've been in the energy industry for the past ten years and I want to let people know how important domestic drilling for oil and natural gas is.
Energy Security Is The Thing
Price isn't the big issue as far as I'm concerned. Energy security is the issue. Consider that even with a massive effort to convert electric power generation and transportation to sources other than fossil fuels, we will still have a considerable need (sorry Al) for fossil fuel powered resources for decades to come. So knowing that we're going to need oil and natural gas I ask this question. Where would you rather get your oil and gas from? Should it be from unstable autocracies like Saudi Arabia, Venezuela, Nigeria and Russia? Or should it be from companies right here at home? You know the answer.
You Can't Trust Them
One day any of these countries could decide to stop trading with the U.S. They would be spiting themselves if they did it but cutting off supply to the U.S. is a very powerful weapon. This could cause the price on world markets to skyrocket overnight. And it is only feasible if these other countries know for sure that we don't have the production capability to make up the difference. It could happen. For this reason alone Congress should authorize more domestic drilling.
Getting Paid Three Times
If the U.S. government did open up offshore areas and ANWR to drilling in order to protect energy security there would also be incredible economic benefits. The people of the U.S. would get paid three times for domestically exploited resources. The oil companies would pay for the land leases, which cost anywhere from $1 to $1.50 (way too low in my opinion) per acre. The oil companies would pay a 12.5% royalty on the money earned from sales of resources that they extract. And the oil and gas companies would pay taxes on their profits. This equation doesn't even take into account the increased number of jobs which lead to increased payroll taxes. Under the current scenario, the U.S. government and various states are taking in a mere fraction of what they could be getting in revenue from oil and gas companies.
Then There's The Environment
American oil and gas companies are held to very high standards with respect to environmental concerns when drilling. The other countries I mentioned don't have nearly the same environmental standards. So those people who say, "No drilling here," are really saying, "Drill somewhere else," which means that they don't care about the negative effects on the environment.
Let's Be Real
This talk of eliminating all fossil fuel consumption within ten years is a complete folly. But even if it wasn't a folly why shouldn't the U.S. ramp up to take advantage of the rising prices for oil and gas in the world markets? And it's not just the U.S. that will benefit. Many other smaller countries that are beholden to the likes of Saudi Arabia, Venezuela, Nigeria and Russia will benefit too. The world will be safer. Our economy will be stronger. And the environment will be much better off. What's wrong with that?
The choice is clear. Drill here, drill now.
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