by Mike Linn
12-02-06
In his recent State of the Union address, President Bush outlined a recovery
plan for breaking America's "addiction" to foreign oil -- mostly by prescribing
alternative energy resources that could take years to deploy.
But, the best medicine for breaking the nation's foreign addiction is the
development of the abundant oil and natural gas resources we have here at home.
It would be a mistake to disregard this country's most-important, readily
available energy solution.
America's oil and natural gas resources were missing not only in the State of
the Union address, but also in the Administration's proposed budget. The White
House's federal budget proposal calls for the "zeroing out" of the Department of
Energy's oil and natural gas programs.
It doesn't make sense that the United States is the only country in the world
that refuses to develop or ignores its vast oil and natural gas resources. And
now, it's proposed that we have a Department of Energy that has no oil or
natural gas program. This is like having a Health and Human Services Department
that commits its dollars toward voodoo instead of real medicine.
It is possible for the United States to replace a portion of its oil imports
with oil and natural gas produced in our own country. For example, the estimated
undiscovered oil offshore (east and west coasts, as well as the Gulf of Mexico)
could replace current levels of oil imports from the Persian Gulf for the next
59 years.
However, 90 % of the offshore is off-limits, including 300 tcf of natural gas
and 50 bn barrels of crude oil. Clean natural gas in the Rocky Mountain West
that is currently off-limits could heat 50 mm US homes for the next 60 years.
Of course, domestic oil and natural gas will not be the only prescription for
our addiction recovery. But we will need oil and natural gas for the foreseeable
future. Today, 65 % of the energy Americans use is oil and natural gas. There
will be a 34 % increase in US demand for natural gas by 2025. And many of the
alternative fuels mentioned by President Bush in his Address -- from ethanol to
hydrogen -- require natural gas or oil to produce.
Restrictions, bans, bureaucratic delays and litigation prevent the responsible
development of our nation’s energy. The result is winter heating costs that are
hitting families harder than any winter storm, a weakening of our nation's
industrial base, higher production costs impacting the US economy in the form of
higher prices and the loss of millions of domestic manufacturing jobs.
According to the results of a national survey released this winter by the
National Association of Manufacturers, nearly 45 % of those surveyed said they
will be forced to lay off workers or impose wage freezes or reductions. About 22
% of respondents said their companies would cut health care or benefits in an
attempt to keep up with energy costs.
If the industry were able to develop these oil and natural gas resources,
according to the National Petroleum Council, consumers could saveup to $ 300 bn
in lower natural gas costs over the next two decades.
Domestic oil and natural gas production will not only save jobs and lessen
our dependence on foreign government, but it will also provide economic
benefits. Federal and state treasuries receive hundreds of billions of dollars
in royalties and taxes from this industry, funding important programs from
education to land preservation.
Furthermore, technology has revolutionized the exploration and production
industry. Today, we use one well instead of four used in 1985 for the same
reserves. Lighter rigs and slimhole drilling mean a smaller environmental
footprint. Directional drilling means better protection of sensitive
environments. The best offshore safety measures ensured that virtually no oil
was spilled as a result of the devastating Hurricanes of Katrina and Rita last
year.
America's energy problems should provide enough motivation for Congress and
the President to form consensus on a clear-cut, inclusive and long-term
solution.
Ignoring the great resources we already have here at home will do nothing but
prolong America's energy hangover.
Mike Linn, president and chief executive officer of Linn Energy in
Pittsburgh, also serves as chairman of the independent Petroleum Association of
America, which represents the companies that drill over 90 % of the nation's oil
and natural gas wells.
Source: MyWestTexas.com