Environment News Service (ENS)
ENS logo
Oil Prices Become Political Bargaining Chip

By Cat Lazaroff

WASHINGTON, DC, April 11, 2002 (ENS) - Rising oil prices are lending ammunition to the Bush administration's campaign to boost domestic oil supplies by drilling on public lands. The chief White House spokesperson says recent threats by Iraq's leadership to cut off oil shipments to the U.S. lend urgency to White House proposals to drill for oil in the Arctic National Wildlife Refuge and other natural areas.

On Monday, the Energy Information Administration (EIA) at the Department of Energy said that gasoline pump prices for spring and summer 2002 are expected to average $1.46 per gallon, eight cents lower than last year's average of $1.54 per gallon. But later in the day, oil prices spiked dramatically after Iraq leader Saddam Hussein announced a temporary embargo on oil exports.

Fleischer

White House spokesperson Ari Fleischer tied oil prices and Arctic drilling together in a briefing Wednesday. (Photo courtesy U.S. Government)
"As the American consumers know, they are increasingly ... paying more money at the gas pump to fill up their car," White House spokesperson Ari Fleischer told the press on Wednesday. "And Saddam Hussein has just said that he will cut off oil to the United States."

Hussein announced during a television address Monday that he plans to halt Iraq's oil exports for 30 days to protest Israel's military actions against the Palestinians on the West Bank.

"The President thinks that Saddam Hussein's threat, promise to cut off oil, is another reason why our nation needs a comprehensive energy plan that is independent of such threats," Fleischer said.

The Senate is now considering an energy package that includes a controversial provision to open the North Slope of the Arctic National Wildlife Refuge (ANWR) to oil exploration.

rally

Hundreds turned out on Capitol Hill Wednesday to say no to oil drilling in ANWR. (Photo courtesy National Wildlife Federation)
"The President thinks it is vital that the Senate pass comprehensive energy legislation to help the American consumer and to protect America's energy independence," noted Fleischer. "And the President knows that ANWR represents 46 years' worth of imports of oil from Saddam Hussein's Iraq," he added, citing one estimate of the amount of recoverable oil lying beneath the Alaskan refuge.

Energy experts disagree about the amount of oil that ANWR could supply, with Bush administration officials generally quoting far higher figures than those cited by conservation groups and several scientific studies.

Speaking Monday to reporters, Energy Secretary Spencer Abraham said that Iraq's announcement highlights the Bush administration's reasons for promoting domestic energy development, and points to the "altogether insufficient" domestic production components of the Senate's energy legislation.

"Most importantly, it does not include any provision for ANWR," Abraham said.

Rogers

Labor leader Ray Rogers said Wednesday that American workers do not support Arctic drilling. (Photo courtesy courtesy National Wildlife Federation)
"ANWR has the potential to produce over one million barrels of oil a day from perhaps 10 billion barrels of recoverable reserves - without any significant adverse effect on the environment," Abraham argued. "At a time when Iraq is calling for an OPEC embargo on oil sales to America - and has just announced a 30 day halt of oil sales - ANWR production could replace more than 35 years of Iraqi oil imports."

Conservation groups, who argue that drilling in ANWR would never satisfy more than about two percent of U.S. energy demands, are heartened by reports that Republican Senators may not have enough votes to pass an Arctic drilling provision. The House passed an energy bill last year that includes approval for ANWR drilling.

If the Senate fails to pass ANWR drilling language, the provision could still be added by the joint House Senate conference committee before the final energy bill is sent to the White House.

Yesterday, opponents of Arctic drilling held a rally on Capitol Hill in Washington DC to protest against ANWR drilling. Labor, religious, Native American and conservation leaders joined in calling on the full Senate to reject the ANWR measure.

Lieberman

Senator Joe Lieberman spoke out Wednesday to oppose Arctic oil drilling. (Photo courtesy National Wildlife Federation)
"The Middle East crisis is far too complicated to be calmed by drilling in the Arctic, and the fact that we're hearing such a far-flung argument tells me that our opponents don't have the votes," Senator Joe Lieberman, a Connecticut Democrat, told the crowd. "The fact remains that drilling in the refuge would not produce a drop of oil for a decade, far beyond the time of the current crisis, and even then far too little to change the skewed foreign oil dependency equation."

Environmentalists are also planning protests against Arctic drilling at an upcoming international energy summit.

On May 2-3, the U.S. will host the G-8 energy ministers in Detroit, Michigan, to discuss energy partnerships and future energy development.

"This meeting is an important part of the President's National Energy Plan which directs us to work with other nations to promote and implement policies geared toward meeting the energy and environmental challenges of the 21st Century," Secretary Abraham said when announcing the meeting in January.

ANWR

Only five percent of Alaska's North Slope - the portion within ANWR - is currently closed to oil drilling. (Photo courtesy Arctic National Wildlife Refuge)
Still Bush cabinet members are actively touting the Bush energy plan. Last week, Interior Secretary Gale Norton made stops in Delaware and New York to promote the president's plan.

"President Bush is committed to implementing a bold energy plan that will help American families, conserve our natural resources and reduce our dependence on foreign oil," Norton said. "The president's strategy improves energy efficiency, creates jobs and diversifies our energy supply, all while protecting the environment."

 

In Its 20th Anniversary Year, Multinational Industry Group Reflects on $2 Billion in Restoration of Natural Resources Safe Pest Control for childcare in Latino Communities The Rainforest Alliance's Guide to Green Holiday Gift-Giving Newmont Selected to Join the Carbon Disclosure Leadership Index Polar Bear Critical Habitat to Be Designated; Lawsuit Settlement Will Increase Protections for Species Sustainability Purchasing Environmentalists Challenge More Bush Administration Political Interference in Endangered Species Decisions Bush Administration Announces Long-Overdue Endangered Species Act Protections for 48 Imperiled Species Pinellas Trail Comes to Downtown St. Petersburg, Florida The Ivory Tower Turns Green Conservation Groups Challenge Kempthorne to Protect Grand Canyon and Enforce Uranium Mining Ban Green Destination Website Launched by Meeting Strategies Worldwide Environmental Defense Fund Partners With Wal-Mart to Cut Global Shopping Bag Waste
WW TRANSMIT
 

License ENS News
for websites and newsletters

Send a news story to ENS editors

Upload environmental news videos

Share ENS stories with the world