Stationary Energy

Arctic National Wildlife Refuge (ANWR)

Current law prohibits oil and gas leasing in the Refuge. In the first session of the 109th Congress, an ANWR development provision was added to the conference report for the Defense appropriations bill, but the provision was removed after failing in the Senate. In addition debating about whether to develop the land, the debate involves the potential restrictions that could be placed on development. These include the size of the area to be developed, the regulation of activities on Native American lands, the disposition of revenues, labor issues, oil export restrictions and National Environmental Policy Act compliance.

• Oil:  The most recent U.S. Geological Survey (USGS), completed in 1998, found there was a 95% chance that at least 11.6 billion barrels of oil are present on federal lands in the 1002 area. However, the amount that would be economically recoverable depends on the price of oil. In 2003, the USGS estimated that there is a 95% chance that 3.89 billion barrels or more could be economically recovered and a 5% chance that 10.7 billion barrels or more could be recovered. The U.S. Energy Information Administration estimated that once production starts, the supply would peak in about 15-20 years if developed at a fast rate, and in about 25 years if developed at a slower rate.

• Natural Gas:  The USCS estimates that there are large quantities of natural gas in the 1002 area. Currently, there is no way to transport the gas to market, so there is interest in constructing a pipeline to transport natural gas from Alaska to North America either directly or in liquefied gas form. The 108th Congress approved loan guarantees to support investment in developing the pipeline because numerous obstacles, including financial costs and risks, have discouraged private investment.

• Environmental and Wildlife Concerns:  Proponents believe that technological innovations may help to develop oil resources in the artic with less harm to the environment. These include: advanced drilling techniques, ice-based transportation, and experiments to modify offshore platforms. However, warming trends in the arctic create potential obstacles for the use of ice roads and ice technology, and could put some fields out of reach. Opponents argue that facilities of any size would alter the unique arctic ecosystem. In 2002, a USGS report concluded that development impacts would be significant. A memo following up on the report found that if development were restricted to the western portion of the area, the Porcupine Caribou Herd, a species of great concern, would not be affected during their calving period. An additional obstacle lies in whether the Fish and Wildlife Service will designate polar bears as threatened under the Endangered Species Act. The Final Legislative Environmental Impact Statement found that the 1002 area is an important location for dens of pregnant female polar bears.