ANWR Oil Drilling

Revision as of 13:43, February 9, 2009 (edit) Iamitamin - Sr. Director (Talk | contribs) m ← Previous diff		Revision as of 18:27, February 9, 2009 (edit) (undo) Iamitamin - Sr. Director (Talk | contribs) Next diff →
Line 1:		Line 1:
-	To drill, or not to drill. That's the question that's been tossed around in Congress for the past 30 years. For [[Royal Dutch Shell (RDS'A)|Shell]], [[Exxon Mobil (XOM)|Exxon]], and the other [[Oil & Gas Majors]], its a multi-billion dollar question. The United States Geological Survey has put the quantity of oil underneath the Arctic National Wildlife Refuge (ANWR) at around 10 billion barrels.<ref name=USGS>[http://pubs.usgs.gov/fs/fs-0028-01/fs-0028-01.pdf United States Geological Survey - Arctic National Wildlife Refuge, 1002 Area,	+	To drill, or not to drill. That's the $400 billion question that's been tossed around in Congress for the past 30 years. For [[Royal Dutch Shell (RDS'A)|Shell]], [[Exxon Mobil (XOM)|Exxon]], and the other [[Oil & Gas Majors]], claiming a stake of those potential revenues is a multi-billion dollar pursuit.
-	Petroleum Assessment, 1998, Including Economic Analysis]</ref> Given that most of the areas oil would be pumped out around 2020-2040, and given the worst case scenario for the oil majors, that oil would produce at least $400B in revenues.	+
-	==The Economics of ANWR==	+	The United States Geological Survey has put the quantity of oil underneath the Arctic National Wildlife Refuge (ANWR) at around 10 billion barrels.<ref name=USGS>[http://pubs.usgs.gov/fs/fs-0028-01/fs-0028-01.pdf United States Geological Survey - Arctic National Wildlife Refuge, 1002 Area, Petroleum Assessment, 1998, Including Economic Analysis]</ref> Given that most of the areas oil would be pumped out around 2020-2040, and given the worst case scenario for the oil majors, that oil would produce at least $400B in revenues.
-	There are three things that determine the value of drilling in ANWR: the quantity of oil it holds, the cost of extracting it, and the expected price of oil.	+
	==Who Benefits from Drilling in ANWR==		==Who Benefits from Drilling in ANWR==
Line 12:		Line 10:
	==Who Losses from Drilling in ANWR==		==Who Losses from Drilling in ANWR==
	The actual output from oil wells in ANWR would be enough to decrease prices by at most a dollar a barrel. That kind of price change isn't enough to cause large changes. However, one of the primary political arguments for drilling in ANWR is that it would increase America's energy independence, the same argument used to support renewable energy. Therefore, legislative support for [[renewable energy]] grants and subsidies would fall. Does that matter, though?		The actual output from oil wells in ANWR would be enough to decrease prices by at most a dollar a barrel. That kind of price change isn't enough to cause large changes. However, one of the primary political arguments for drilling in ANWR is that it would increase America's energy independence, the same argument used to support renewable energy. Therefore, legislative support for [[renewable energy]] grants and subsidies would fall. Does that matter, though?
		+
		+	==The Economics of ANWR==
		+	There are three things that determine the value of drilling in ANWR: the quantity of oil it holds, the cost of extracting it, and the expected price of oil.
		+
		+	==The Politics of ANWR==
	==References==		==References==

---

Revision as of 18:27, February 9, 2009

To drill, or not to drill. That's the $400 billion question that's been tossed around in Congress for the past 30 years. For Shell, Exxon, and the other Oil & Gas Majors, claiming a stake of those potential revenues is a multi-billion dollar pursuit.

The United States Geological Survey has put the quantity of oil underneath the Arctic National Wildlife Refuge (ANWR) at around 10 billion barrels.^[1] Given that most of the areas oil would be pumped out around 2020-2040, and given the worst case scenario for the oil majors, that oil would produce at least $400B in revenues.

Who Benefits from Drilling in ANWR

All companies involved in the oil value chain would benefit. Oil has to be found, extracted, transported, refined, and transported again to where it can be sold.

The largest winners would be the Independent Oil & Gas companies and the Oil & Gas Majors that are able to find easily extractable reserves, as well as the oilfield services companies that they contract.

Who Losses from Drilling in ANWR

The actual output from oil wells in ANWR would be enough to decrease prices by at most a dollar a barrel. That kind of price change isn't enough to cause large changes. However, one of the primary political arguments for drilling in ANWR is that it would increase America's energy independence, the same argument used to support renewable energy. Therefore, legislative support for renewable energy grants and subsidies would fall. Does that matter, though?

The Economics of ANWR

There are three things that determine the value of drilling in ANWR: the quantity of oil it holds, the cost of extracting it, and the expected price of oil.

The Politics of ANWR

References

1. ↑ United States Geological Survey - Arctic National Wildlife Refuge, 1002 Area, Petroleum Assessment, 1998, Including Economic Analysis

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.