Arctic Oil/Gas Aff Inherency
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- Companies want to drill – market forces
- AT: Slow TF
AT: Won’t DrillTech makes Arctic drilling viable – reduces costsMorse 12 ED MORSE is Global Head of Commodities Research for Citigroup and a former State Department official, SEPT/OCT 2012, “Boom Time”, http://www.foreignpolicy.com/articles/2012/08/13/boom_time It won't be easy for Saudi Arabia or any other OPEC country to increase production in an effort to bring down prices and prevent investment from flowing into North American production. OPEC countries need increasingly higher prices to meet their fiscal needs, and their market power allows them to put a high floor under prices to achieve their revenue goals. At the same time, these higher prices guarantee that North American production, which is costlier than production in OPEC countries, will be profitable. ¶ Levi is right in saying that costs are currently high for unconventional North American oil. But he evidently doesn't understand that high costs bring technological change and innovation, and that historically costs ultimately go down. This is bound to continue to be the case when it comes to North American shale, oil sands, and deepwater output. Companies want to drill – market forcesWilson Center 12 The Woodrow Wilson Center, July 12, 2012, “In Search of Arctic Energy”, http://www.wilsoncenter.org/event/search-arctic-energy ExxonMobil defines its Arctic territory as any place where sea ice affects oil production, said Jed Hamilton from ExxonMobil Upstream Research. He said that all offshore development has been in shallow seas, and that the real challenge will be exploiting reserves in deep water. Thus ExxonMobil’s new floating deep-water rigs must be able to navigate the numerous icebergs that drift through drilling areas, making development all the more difficult. Hamilton said that oil will be the driving force of Arctic exploration while gas extraction remains on the mainland. However, even when compared to cheaper gas, there must be at least 500 million barrels of high priced oil in a play for a well to become financially viable for development. The profitability of Arctic wells also depends on the type of oil found there. The process used to refine heavy and extra heavy oil would make Arctic production economically unfeasible. Associated costs, such as building icebreakers, also figure into the premium for Arctic oil, along with extra infrastructure, environmental, and shipping costs. While the price of development is high, market forces indicate that the rush for Arctic oil will not abate in the near future. AT: Slow TFEven if oil takes time to be extracted, economic benefits are immediateHastings 11 Doc, Chairman of the House Natural Resources Committee, "Forget 10 Years--Drilling ANWR Would Pay Off Right Away", November 3, www.usnews.com/debate-club/is-it-time-to-drill-in-the-arctic-refuge/forget-10-years--drilling-anwr-would-pay-off-right-away Critics argue that we shouldn't drill in ANWR because it will take 10 years for the oil produced to become available. This fuzzy logic has been used for the last 20 years by those who simultaneously argue that renewable energies like wind and solar need decades to mature, along with billions in government subsidies. This inconsistent comparison is illogical and fails to provide equity in America's need for an all-of-the-above energy policy. While oil from ANWR might take a couple of years to get online, the job creation and effect on the economy would be almost instantaneous, as infrastructure and development activity could start immediately, sending billions to the federal government and employing thousands of people. CIRI control triggers fast production---there’s a window of opportunity to solve well decline and lock in suppliesCIRI 13 – Alaskan Native Corporation, Cook Inlet Region Inc., An ANSCA Alaskan Native Corporation, Key Projects, 2013, Most Recent Update, http://www.ciri.com/content/company/CookOilGas.aspx COOK INLET OIL AND GAS LEASING¶ CIRI is Southcentral Alaska's largest private landowner, with more than 750,000 acres of subsurface land in and around oil-producing regions on the Kenai Peninsula and the west side of Cook Inlet.¶ CIRI is strategically positioned to play an important role in solving Southcentral Alaska's energy problems. The company is able to move more swiftly than larger public landowners and has the flexibility and financial strength to structure incentive options designed to encourage aggressive new oil and gas exploration.¶ Cook Inlet natural gas supplies, the region's primary energy generation source, have been steadily dwindling in recent years. Cook Inlet gas has been considered "stranded" since its discovery in the 1950s, because global gas prices were not high enough to justify building a pipeline or other means of exporting the gas to external markets. Consequently, Southcentral Alaska customers for decades paid 30 to 50 percent less for gas than Lower 48 prices.¶ Now, however, local demand will soon exceed known reserves, and Cook Inlet gas prices are increasing to match world energy prices. Higher prices will encourage gas exploration and production by making it more profitable for companies to find and develop new Cook Inlet area gas reserves.¶ CIRI sees a window to encourage new Cook Inlet gas development before importation from outside the region becomes necessary, and is moving swiftly to attract new exploration entrants, including independent oil and gas companies. Directory: file -> view view -> Western Europe after wwii view -> Author study: paul fleischman view -> Qpa1 7ela study Guide view -> Arctic Oil/Gas Neg view -> November 1970 Approximately 150,000-500,000 deaths Bhola Cyclone Bangladesh view -> Grade Level: 6 Unit of Study: Caribbean glce view -> Citation: Duffield, Katy view -> Table of Contents Lesson # view -> Chinese Wind Energy Disad Download 2.43 Mb. Share with your friends:
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