Creates Significant Economic Effects Development of new oil and gas fields in the Beaufort and Chukchi Seas resulting in production of nearly 10 billion barrels of oil and 15 trillion cubic feet of natural gas over the next 50 years could create significant economic effects nationwide. The total ramps up to 68, during production and 91, at peak employment. These direct and indirect jobs would be created both in Alaska and the rest of the United States.
Deluding Communities About the Benefits of Resource Extraction The problem with Alaska's economic strategy is that it is based on the economic facts of the past rather than the projections of the future. The choice is not between extracting fish or extracting oil. There are other options.
President Barack Obama on Sunday, Aug. Alaska's oil bounty has long kept state taxes low and has created employment for people working in and around the local energy industry.
The problem with an overreliance on resource extraction for wealth is that it leads to a boom and bust cycle caused by fluctuating prices.
Oil prices are quite volatile and are driven by speculation and unpredictable supply and demand. Sometimes the problem with resource extraction is not volatility, but reduced demand.
The coal communities of West Virginia are in the midst of a long-term decline and the oil towns in Alaska will eventually suffer the same fate.
Unless the wealth from resource extraction is invested locally in a sustainable, long-term business, the decline is not a matter of if, but when. Writing about Shell's effort to drill for oil in the arctic, Steven Mufson of the Washington Post reported that while the Wilderness Society and other environmental groups oppose the drilling: Shell has received support in the debate over drilling vs.
They acknowledge climate change but say the threat it poses to their subsistence fishing culture means they need some other source of economic welfare.
And new oil development is the only option. Climate change continues with or without us, then who's going to build schools for our grandchildren," He added that the borough government on the North Slope "depends on oil and gas as the only tax base we have.
What we have is what we have. We depend on development.
Shell has invested billions in exploring for oil and if sufficient quantities of petroleum are found, the company would invest additional billions in the infrastructure needed to extract and ship the oil. The risks posed by oil development to the fragile local ecology will be substantial--no matter how careful the industry is and how vigilant government regulators manage to be.
Some local folks seem willing to take the risk in order to receive the benefits of development. Others feel trapped between the need for economic opportunity and the dangers posed by this inherently risky business.
Some of the wealthiest companies in the world and some of the richest people in the world have made lots of money by extracting resources from the earth.The economic argument for a major expansion in drilling is alive and well, contrary to what President Obama says. The 3 biggest benefits of producing more oil Subscribe.
Should we drill in the Arctic National Wildlife Refuge?
An economic perspective Matthew J. Kotchena,b,c,, This paper provides model-based estimates of the value of oil in Alaska’s Arctic National Wildlife Refuge (ANWR). The best estimate In the starkest sense, economic efﬁciency recommends drilling if the beneﬁts exceed the costs.
Toohey said Alaska, which is dependent on the oil and gas industries for 80 percent of its state revenue, would gain 38, jobs from the ANWR project. Caruba also points to the economic benefits of oil drilling in . America's Oil Boom Gets Louder In Alaska Licensing. who has exhaustively reported on the Alaska drilling project, described in a recent blog: and economic benefits for Alaskans.". Drilling in the Arctic National Wildlife Refuge provides many immediate economic benefits for the United States. Given the current economic struggles that Americans are .
Sep 14, · Arctic Oil Drilling: Deluding Communities About the Benefits of Resource Extraction The problem with Alaska's economic strategy is that it is based on the economic .
Many wildlife species rely on the Arctic National Wildlife Refuge (ANWR) for their habitat including polar bears, musk oxen and wolverines.
However, the species that relies heaviest on the ANWR is the caribou, specifically the porcupine caribou herd. The benefits to Washington state’s economy will continue to grow if Congress approves oil development in a small section of Alaska’s Arctic National Wildlife Refuge.
Washington’s five oil refineries process billions of dollars of Alaska crude, supplying consumers throughout the Northwest with energy. With gasoline at over $4 a gallon in some places, and turmoil in the Middle East igniting fears that a big squeeze could strike at any time, it’s important to examine whether the economic argument for a major expansion in drilling is really as weak as the administration claims.