U.S. President George W. Bush aims to open up a 1.5-million-acre area of the Arctic National Wildlife Refuge, or ANWR, to oil and gas leasing by 2009, according to the administration's proposed 2008 Budget.

As part of the administration's energy policy to help wean the country off dependence on crude imports, the president hopes opening ANWR's "1002" area on the North Alaska coast will tap the estimated 5.7 billion to 16 billion bbl of oil equivalent.

The administration has faced tough opposition to opening up the refuge, and given that environmentalists successfully lobbied against re-opening ANWR in the Republican-controlled Congress last year, it is generally believed re-opening ANWR in the current, Democrat-run Congress would be much more difficult.

The U.S. Geological Survey expects peak production could hit 1 million boe/d, "equivalent to nearly 10% of the nation's current daily imports ... and would result in an estimated $7 billion in new revenues," the administration said in its budget. The income would be split 50-50 between the federal government and the state of Alaska.

The budget includes a proposal to authorize the Department of the Interior to conduct "environmentally responsible oil and gas exploration and development.

"The 2008 Budget will support necessary activities to begin ANWR leasing and fund continued leasing of the National Petroleum Reserve-Alaska," it said.

Source: Dow Jones Newswires


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