Meanwhile gasoline prices have creeped above $5 a gallon in some locations

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**Frazzled**

http://www.foxnews.com/us/2011/04/25/energy-america-oil-drilling-denial/

Energy in America: EPA Rules Force Shell to Abandon Oil Drilling Plans
By Dan Springer

Published April 25, 2011 | FoxNews.com

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Shell Oil Company has announced it must scrap efforts to drill for oil this summer in the Arctic Ocean off the northern coast of Alaska. The decision comes following a ruling by the EPA’s Environmental Appeals Board to withhold critical air permits. The move has angered some in Congress and triggered a flurry of legislation aimed at stripping the EPA of its oil drilling oversight.

Shell has spent five years and nearly $4 billion dollars on plans to explore for oil in the Beaufort and Chukchi Seas. The leases alone cost $2.2 billion. Shell Vice President Pete Slaiby says obtaining similar air permits for a drilling operation in the Gulf of Mexico would take about 45 days. He’s especially frustrated over the appeal board’s suggestion that the Arctic drill would somehow be hazardous for the people who live in the area. “We think the issues were really not major,” Slaiby said, “and clearly not impactful for the communities we work in.”

The closest village to where Shell proposed to drill is Kaktovik, Alaska. It is one of the most remote places in the United States. According to the latest census, the population is 245 and nearly all of the residents are Alaska natives. The village, which is 1 square mile, sits right along the shores of the Beaufort Sea, 70 miles away from the proposed off-shore drill site.

The EPA’s appeals board ruled that Shell had not taken into consideration emissions from an ice-breaking vessel when calculating overall greenhouse gas emissions from the project. Environmental groups were thrilled by the ruling.

“What the modeling showed was in communities like Kaktovik, Shell’s drilling would increase air pollution levels close to air quality standards,” said Eric Grafe, Earthjustice’s lead attorney on the case. Earthjustice was joined by Center for Biological Diversity and the Alaska Wilderness League in challenging the air permits.

At stake is an estimated 27 billion barrels of oil. That’s how much the U. S. Geological Survey believes is in the U.S. portion of the Arctic Ocean. For perspective, that represents two and a half times more oil than has flowed down the Trans Alaska pipeline throughout its 30-year history. That pipeline is getting dangerously low on oil. At 660,000 barrels a day, it’s carrying only one-third its capacity.

Production on the North Slope of Alaska is declining at a rate of about 7 percent a year. If the volume gets much lower, pipeline officials say they will have to shut it down. Alaska officials are blasting the Environmental Protection Agency.

“It’s driving investment and production overseas,” said Alaska’s DNR Commissioner Dan Sullivan. “That doesn’t help the United States in any way, shape or form.”

The EPA did not return repeated calls and e-mails. The Environmental Appeals Board has four members: Edward Reich, Charles Sheehan, Kathie Stein and Anna Wolgast. All are registered Democrats and Kathie Stein was an activist attorney for the Environmental Defense Fund. Members are appointed by the EPA administrator. Alaska’s Republican senator thinks it’s time to make some changes.

“EPA has demonstrated that they’re not competent to handle the process,” said Sen. Lisa Murkowski. “So if they’re not competent to handle it, they need to get out of the way.”

Murkowski supported budget amendments that would have stripped the EPA of its oversight role in Arctic offshore drilling. The Interior Department issues air permits to oil companies working in the Gulf of Mexico.

**alarmingrick**

I'm glad they can't drill off Alaska's coast.
the price hicke isn't due to we can't drill in x,y or z. there's still plenty of oil out there.

**Bromsy**

Yeah, but it's never good to have vital resources only coming in from overseas.

**Frazzled**

alarmingrick wrote:I'm glad they can't drill off Alaska's coast.
the price hicke isn't due to we can't drill in x,y or z. there's still plenty of oil out there.

Its irrelevant if you're not permitted to get it.

**Cheesecat**

Why do people act surprised when gas prices rise, it's only going to get more expensive as the resource get more rare. Supply and demand.

**Mordoskul**

Cheesecat wrote:Why do people act surprised when gas prices rise, it's only going to get more expensive as the resource get more rare. Supply and demand.

"It's called the economy, stupid."

**Jackal**

Thats it? seems nice and cheap

£6.30 a gallon over here.
Which is what, $11.80 ish?

**Witzkatz**

Aye. As someone from Germany, I find the gas prices here in America hilariously cheap, we pay at least double your price. The world doesn't collapse if that stuff gets a little bit more expensive.

**Cheesecat**

Edited

**Ma55ter_fett**

It wouldn't help much even if they were allowed to drill, oil is a globally traded commodity and American oil does not all find its way into American cars/trucks much of it is sold to other countries.

**biccat**

Cheesecat wrote:Why do people act surprised when gas prices rise, it's only going to get more expensive as the resource get more rare. Supply and demand.

The resource is getting more rare as we use it, but new technology is making available new sources that were previously unknown or thought to be unobtainable.

So the issue isn't "oil in the world," it's "available oil." Examples like the above that restrict access to oil are artificially curbing the supply of future oil, which helps to drive up prices.

If the US gov't said that it was going to start allowing drilling permits and new exploration, the price of oil would drop sharply, because the future price of oil would be expected to drop.

Witzkatz wrote:Aye. As someone from Germany, I find the gas prices here in America hilariously cheap, we pay at least double your price. The world doesn't collapse if that stuff gets a little bit more expensive.

That's because you're paying €1.22 per liter in taxes (over $6.50 per gallon). The US averages less than $0.50 per gallon in taxes.

**Kilkrazy**

What's the national debt again?

**Frazzled**

Kilkrazy wrote:What's the national debt again?

Which nation?

**Kilkrazy**

USA and Germany.

**biccat**

Kilkrazy wrote:USA and Germany.

According to wikipedia, as of 2010, Germany had public debt of 78.8% of GDP, while the US was at 58.9%.

Looks like Germany needs to get with the program and drop their fuel taxes.

**Frazzled**

We owe more. Part of the reason we owe more is that whole US shield over Germany thing though, so its not especially relevant.

**Kilkrazy**

Higher taxes on petrol wouldn't help, I suppose.

**Mike Noble**

Didn't they say we'll run out of oil in the next 100 years? Because if its that short, i doubt oil will get much cheaper.

Also, I'm pretty sure we can make fuel from other things than petroleum. Like natural gas. I could be wrong though.