More Oil Drilling Not To Lower Prices
A study by the US Energy Information and Association(EIA) has revealed that extended offshore drilling would not translate into lower oil and gas prices.The report says that regions in the Outer Continental Shelf (OCS)has a sizeable quantity of oil and gas resources. The OCS region deposits can be technically extracted but the entire process of building additional facilities for the extraction would need a significant investment of time and effort.Hence the price benefit of additional resources would be offset by the long gestation period.Or in other words the much publicized ANWR project would not lead to lower gas prices despite a substantial investment of tax dollars.
Bush ,Mc Cain and Republicans have repeatedly favored oil extraction and fossil fuels to address the energy challenge.I have highlighted that increased oil and gas resources can best buy us some more time (and even that time looks too long and costly to attain!) to develop an alternative energy plan and execute it.This report should prompt the Republicans to rethink their energy plans for the future.
Tags: alternative energy, anwr, arctic national wildlife reserve, fossil fuels, offshore drilling, oil pricesIf you enjoyed this post, please consider to leave a comment or subscribe to the feed and get future articles delivered to your feed reader.
July 2, 2008
This is exactly the problem.. if restrictions hadn’t been in place all this time, we wouldn’t be facing oil shortages and $5 gas. However, the crisis has led to big investments in alternative energies which is good… a silver lining I suppose. I still think better late than never.. drill in the US wherever possible including ANWR while at the same time pushing for conservation, higher fuel standards and more investment in alternative energies. It ALL must be done and done now.