Russian President Vladimir Putin’s dreams almost came true.
Over the past few years, the Russian government has promoted development of the vast natural gas resources of the Russian high Arctic to Germany, Poland, and other eastern European countries. Putin planned to have them totally dependent on long-term contractual commitments for their energy needs, formerly provided by coal.
Had Putin waited a few years, most of Europe would have become so dependent on Russian gas that they would effectively be held hostage. Putin would have been able to achieve his ultimate goal, reuniting Mother Russia and returning to the former “grandeur” of the USSR.
Putin, however, misjudged on two accounts: Eastern Europe is not yet entirely dependent on Russian gas, and he totally underestimated the fierce response from Ukraine. The war rages on, and he appears to have no graceful exit.
However, his actions have cut off global access to Russian oil resources. The impact is being felt around the world, as fuel costs for shipping, agriculture, manufacturing and daily transportation skyrocket.
As absurd as it may seem, President Joe Biden is playing right into Putin’s hands. Rather than recommit to our former U.S. policy of attaining a level of energy independence that we once enjoyed, Biden has seen fit to pull oil from the Strategic Petroleum Reserve — at least 1 million barrels per day. That creates a concern for our national security if an emergency arises.
Further, Biden is refusing to open up federal petroleum reserves for production. Several of the most promising prospects are in Alaska.
The Naval Petroleum Reserve-Alaska was set up in 1923. This is an area of 23. million acres, about the size of the state of Indiana. ConocoPhillips has leases with some production and could develop a lot more.
Nearby is the Arctic National Wildlife Refuge, an area similar to NPRA, about 19 million acres. Congress has set aside 8 million acres for wilderness, 9 million acres in a wildlife reserve, and authorized leasing in the remaining 1.8 million acres. A lease sale took place last year and the state acquired several leases. Payment was made to the Department of the Interior, yet the Biden administration is litigating the sale.
Both these federal areas are near the trans-Alaska pipeline, which has a design capacity of 2 million barrels per day. Yet current throughput is roughly 500,000 barrels a day, about what the U.S. had been purchasing from Russia at a cost of about $46 million per day.
If the Biden administration would issue an emergency order to open up both areas — ANWR and NPR-A — production could be increased and have an impact on our oil deficit.
Those who object to developing fossil fuels have a role to play, too. The preservationist/green lobby has no plan to address consumer prices for gasoline.
However, the Biden administration could negotiate a trade-off with the environmental lobby. I suggest the Department of Energy draw up a formula in which, as new green energy technology is introduced, there would be a proportional adjustment downward in our national production of fossil fuels.
Something along these lines would make it possible for the U.S. to begin efforts to again achieve energy independence, stimulating an adequate level of oil production and advancing development of green energy.
President Biden and his advisers must be held accountable for their irresponsible and illogical decision to disregard Alaska as a potential solution to our nation’s energy crisis. Alaska must be an integral part of our nation’s energy planning. Our nation’s inflation rate is near 8%, and high energy costs are a major factor.
Alaska must be allowed to develop and access our renewable natural resource wealth — our fish and timber — as well as our non-renewables — our minerals and yes, our oil and gas. Alaska’s assets hold the key to countering President Putin’s actions and President Biden’s inaction.
Frank H. Murkowski is a former governor (2002-2006) and former U.S. senator (1980-2002) from Alaska.
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