Tomah Journal - Printable Version

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Published - Thursday, June 19, 2008

Editorial: Offshore drilling won’t bring back cheap gasoline

With gasoline topping $4 a gallon, it was inevitable that drilling for oil in scenic or environmentally sensitive areas would become an issue in the presidential campaign. John McCain, the likely Republican nominee for president, abandoned his opposition to offshore drilling Tuesday, and President George W. Bush pushed his own offshore drilling proposal the following day.

How much would offshore drilling reduce the cost of gas? Not much. Consider that:

*McCain’s plan repeals the 27-year-old federal ban on offshore drilling but would still allow individual states to retain their own bans. While McCain proposes “incentives” for states to authorize production, those incentives would make offshore oil (and refined gasoline) more expensive and enrich states like Florida and California at the expense of Wisconsin. If offshore drilling is authorized, there is no reason why coastal states should have the power to extract royalties and export their tax burdens to the heartland.

*Offshore oil is expensive. It costs $150 million just to construct an offshore rig, and one economist estimates that oil must remain at least $60 per barrel to make offshore drilling economically viable. While $60 is considerably less than the current price of $135, it was only three years ago when oil first hit $60 a barrel and generated “pain at the pump” stories.

*Offshore oil isn’t renewable. It’s clear that America needs to invest in renewable energy sources, especially a renewable source to power automobiles. Does offshore oil buy us time to convert to renewables, or will it just trigger more decades of procrastination? Whether there’s 60 years worth of oil still in the ground or 160, oil is still a finite commodity.

It’s clear that offshore oil won’t bring back the era of cheap gasoline or create a clear path toward energy independence. The real solutions: live closer to work, drive more energy efficient cars to get there and push for investments in clean, renewable energy sources. Offshore drilling may be a viable short-term idea, but it’s not the long-term answer to the nation’s energy dilemma.