America’s Oil Revival

Last week Alaska Senator Lisa Murkowski unveiled the Republicans’ new plan for energy development. She called for a partial opening of the Alaska National Wildlife Refuge, the development of offshore oil tracts plus more production from federal lands. Within hours the Natural Resources Defense Council had dismissed the whole thing as “a plan from the past.” And in fact it was little more than a reiteration of the four-year-old cry, “Drill, baby, drill.”

Anyone who thinks this signals another four years of energy stalemate, however, is sadly mistaken. The very next day, energy expert Daniel Yergin was telling a hearing of the House Energy and Commerce Subcommittee that, if anything, Washington is completely out of the loop as to what’s happening in energy. “Our thinking has to catch up with reality,” said Yergin, head of the prestigious Cambridge Energy Research Associates. “Everything has been turned upside down.”

Indeed. Only six month ago Mitt Romney was being mocked on front pages across the nation for suggesting North America could achieve energy independence within the next decade. Romney was careful to include Canada and Mexico, but the editorial writers ignored him anyway. Now six months later you could cross out Canada and Mexico. Within a few months, Congress will be undertaking a contentious debate over whether we should become an energy exporter.

Everybody knows about the natural gas boom, of course, brought about by the new fracking technology. Prices have been driven so low that gas wells are now closing down, waiting for the glut to subside. Fracking has so much momentum that even the attempt by Matt Damon to do for fracking what The China Syndrome did for nuclear power slunk out of the theaters in about a week. Sorry, Hollywood, even star power won’t be able to stop this one.

But natural gas is only the beginning. Where indirect drilling and the new fracturing techniques will have an impact is on reviving American oil. Consider this. The Bakken Shale’s “tight oil” formation, opened for development in 2006, has lifted America’s oil output 38 percent over the last five years. That’s the equivalent of the entire output of Nigeria, OPEC’s 7th largest producer. North Dakota is booming as if it were the 1980s. Unemployment is 3.2 percent, lowest in the nation, and Wal-Mart is paying $17 an hour. Things have gotten so good that the New York Times has felt compelled to dispatch reporters to tell us how women are being harassed in oil towns and many roughnecks lack medical insurance. (But the roughnecks do have enough money to offer the women $3,000 a night to tend bar at private parties.)

Read more at The American Spectator. By William Tucker.

Comments

  1. The NRDC is an obstructionist organization that promotes the anti development plan of this administration. NRDC and other obstructionists screamed that the Alyeska Pipeline would be an environmental disaster back in the 70s. Where has the disaster occurred over the past 35 years? The worst part of it is these organizations probably get a lot of taxpayer dollars to operate.

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