2008-06-18 Don't Expect Too Much From ANWR

2008-06-18 Wall Street Journal \ANWR\oil addiction\US economy http://blogs.wsj.com/economics/2008/06/18/dont-expect-too-much-from-anwr/ Don't Expect Too Much From ANWR &ldquo;Last month the Department of Energy produced a report titled, "Analysis of Crude Oil Production in the Arctic National Wildlife Refuge" [which indicates] that drilling in ANWR won't do much to decrease energy prices any time soon.&rdquo;  Last month the Department of Energy produced a report titled, "Analysis of Crude Oil Production in the Arctic National Wildlife Refuge".

The report makes two points that indicate that drilling in ANWR won't do much to decrease energy prices any time soon. First, the report states that drilling wouldn't add to domestic production for at least 10 years, and peak production can't be expected until the 2020s. Meanwhile, under the middle-of-the-road estimate for output oil prices would be expected to decline by only 75 cents per barrel in 2025. If there's less oil than expected in ANWR the reduction in prices would be 41 cents per barrel in 2026, and if there's more than expected the drop in prices is seen around $1.44 per barrel in 2027. That would translate into a reduction in gas prices between just one cent and four cents, according to an analysis prepared by Congress's Joint Economic Committee.   