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Future of the World's Oil


If allowed and extensively drilled for exporting, the United States could help set the price of oil around the world. In order to understand the complexity of the oil ban issue under conflict, it is important to briefly look at the history of the issue. President Richard Nixon signed the ban on the drilling and exportation of oil into law in 1973. In 1977, the Trans-Alaska Pipeline System (TAPS) was created, which served the purpose to ship crude oil to South Alaska in a more efficient and cost beneficial manner. From this point until 1994, no important legislation was passed concerning the oil exportation ban in the North Slope. .
             In 1994, the Department of Energy did a study, "Exporting Alaskan North Slope Crude Oil-Benefits and Costs", and the finding was that exporting crude oil from Alaska would increase cash flows for producing companies for California and Alaska oil. The Department of Energy predicted greater producer gains at the wellhead would lead to 100,000 more barrels per day of output from Alaska and California than would be the case with continued export restriction. Furthermore, at the same time, oil ban repeal supporters were pushing pro drilling legislation through the Senate Energy Committee for the first time. Heated debates began to occur around this same time among environmentalists and Republicans. Legislation was passed in 1995 allowing for the exporting oil from the region, even though it was only in small amounts. There were several bills introduced during the year 2000, which would stop the export of crude oil produced within the Northern Slopes of Alaska. Pro drilling legislation is also being pushed into congress in hope of increasing the areas they can drill, and the amount that can be produced. When evaluating whether or not drilling in an area can be done many issues must be considered. If the ban on widespread oil drilling is repealed, and oil companies move into the North Slope and the ANWR, then the thousands-year old culture of the Gwich'in Indians who live in the area would be in danger.


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