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White House says ANWR lease revenue could triple

Drilling for oil on the coastal plain of the Arctic National Wildlife Refuge figures prominently in the Bush administration’s fiscal 2007 budget proposal, thanks to lease sale revenue estimates that triple the $2.4 billion projected a year ago.

The U.S. Department of the Interior said Feb. 6 it expects to collect more than $7 billion from leasing tracts in the barren, but potentially oil-rich, 1002 Area of ANWR based on revised calculations from the Energy Information Administration and the Congressional Budget Office.

The $7 billion figure, to be split 50-50 with Alaska under terms of the current budget proposal, is drawn from a recent Congressional Budget Office report on the long-term projected price of oil exceeding $50 per barrel in 2010. Interior previously estimated the first sale would attract $2.4 billion in bids, based on $25 per barrel oil.

If Congress approves oil drilling in ANWR this year, the first sale would occur in 2008. A second sale in 2010 could generate nearly another $1 billion, according to Interior.

“The issue of ANWR is one that continues,” Interior Secretary Gale Norton told reporters in releasing the department’s proposed fiscal year 2007 budget. “There will be a number of opportunities this year to move ahead.”

Read the rest at Petroleum News

Permalink :: Posted by Clay Butcher on February 13, 2006 :: ::
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