Bush Administration's proposed FY 2007 budget seeks ANWR opening

Washington (Platts)--6Feb2006

The Bush Administration's fiscal year 2007 budget submitted to Congress
Monday again calls for opening Alaska's Arctic National Wildlife Refuge to oil
and gas development. 

     "Reducing the nation's dependence on foreign energy sources is a top
administration priority," the budget statement said. "The administration
supports authorizing limited exploration and development on the coastal plain
of ANWR, using the strictest environmental standards." 

     The Department of Interior estimates that the 1002 area holds between
5.7-bil and 16-bil bbl of recoverable reserves, or at peak production, up to
1-mil b/d of new US supply, the budget said.

     The budget assumes that the first oil and gas lease in the Arctic
National Wildlife Refuge will be held in 2007 and result in $2.4-bil in new
revenues. All oil and gas revenues would be split with the state of Alaska,
according to the budget, including an estimated $2-mil in annual rental
payments. 

     The 2007 budget will also support funding for "necessary environmental
reviews to begin ANWR leasing," the budget said, as well as funding to
continue leasing of the National Petroleum Reserve-Alaska. Additional funds
will also clean up old contaminated well sites in Alaska.

	           --Cathy Landry, cathy_landry@platts.com

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