Resource Development Council
 
 

Offshore energy development is

focus of key Alaska hearing April 14

Secretary of the Interior Ken Salazar will host a major public hearing in Anchorage on Tuesday, April 14 to discuss the future of offshore energy development on the nation’s Outer Continental Shelf (OCS).

After opening remarks, the Secretary and his staff will present a brief overview of OCS energy resources. The rest of the meeting will be devoted to hearing from public and private interests on the best approaches to developing a comprehensive offshore energy plan that includes the development of traditional and renewable sources of energy in the OCS.

The Anchorage meeting, one of four being held across the nation, will be at the Dena’ina Civic and Convention Center. It will run from 9 am to 8 pm with breaks for lunch and dinner. Private citizens and elected local, state and federal officials, as well as energy producers, advocacy groups, Native organizations and science and research groups have been invited to offer brief testimony.

Unlike earlier hearings held during the Bush administration, this meeting will not focus on specific lease sales. It will gauge public opinion on the development of an offshore energy plan that will likely put an increased emphasis on renewable energy, with some new oil and gas development in certain areas, but not necessarily Alaska.

“It is vital that Alaskans voice their opinion on offshore energy development,” said RDC Executive Director Jason Brune. “This is our chance to express our view to the Secretary and his staff on the immense benefits of OCS development to Alaska and the nation. This particular hearing is perhaps the most important one to be held in Anchorage in years, and the resulting public testimony could play a major role in determining the future direction our country takes in the development of offshore energy resources.”

Environmental organizations are mobilizing their forces to convince the new Interior Secretary that the public does not support the development of oil and gas resources in the OCS. The Alaska Wilderness League is working to build “a chorus of voices for Alaska at these meetings,” noted an alert posted on the organization’s web site recently.

“We’ll show the broad support across America for conserving America’s Arctic fragile ecosystem and we’ll advocate against Bush’s plan for a massive expansion of drilling.” As recently as February, polls show that 61 percent of Americans support access to the new areas of the OCS that have not been available for oil and gas development. Federal waters hold the greatest potential for finding new energy resources and Alaska’s Chukchi Sea is considered America’s most prolific unexplored offshore energy basin in North America.

“RDC and many Alaskans share President Obama’s view that America needs to conserve more and put new emphasis on renewable energy, but we also need to pursue new oil and gas production, given the fact it will take decades before renewable energy will become a dominant energy source,” said Brune.

Even considering the most optimistic projections for growth in renewable energy development, petroleum products and natural gas are projected to account for almost 65 percent of domestic energy consumption in 2025.

“Increased emphasis on renewable energy should not preclude or require less oil and gas development because for every barrel of oil we refuse to develop domestically, our nation will import another from overseas – where weaker environmental regulations and emission standards often apply,” explained Brune. “New OCS production is the bridge to the renewable energy resources of the future,” Brune said.

RDC supports exploration in Alaska’s OCS because it is confident operations can occur safely and with little impact to the environment and wildlife, including polar bears. Offshore development has an outstanding safety record in Alaska and elsewhere. Moreover, Alaska has a strong regulatory regime and specific measures in place to avoid conflicts with other resource users, including seasonal operating restrictions and deferral of specific tracts. In addition, advances in technology have dramatically reduced industry’s footprint.

New production from the OCS could enhance the economic viability of the proposed gas pipeline, given the project needs additional reserves beyond what has already been discovered to make it economic over the long haul. In addition, a recent study indicated new OCS production could double throughput in the existing oil pipeline from Prudhoe Bay, which is now operating at onethird capacity.

According to the University of Alaska and Northern Economics study, OCS production in Alaska could provide an annual average of 35,000 jobs within the state over 50 years and $72 billion in total new payroll over that same period. Offshore production could also result in an estimated $15.3 billion in new state government revenues, assuming an average price of $65 per barrel over the 50-year period. Local communities could see revenues of $4.5 billion over the time span.

“OCS development, if it were to occur, could be a significant driver of the next generation of economic activity by extending the duration of the petroleum industry in the state,” the report said. “OCS-related growth could more than offset losses from the decline of petroleum production on state lands and could help sustain the economy for decades.”

Those who wish to speak at the Anchorage hearing will need to register at the sign-in table on the day of the meeting. They will be given a speaker number at that time. Elected officials will speak first. Speakers from the general public will receive up to three minutes to present oral comments. Elected officials will receive up to five minutes.

The latest details and updates on the April hearing can be found at akrdc.org.

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