Buried Treasure.

• Author: Abrahamson, James L.
• Position: Shale oil and gas resources in North America

BURIED TREASURE

Clifford May, President, Foundation for Defense of Democracies

http://www.cliffordmay.org/10836/buried-treasure

Though Clifford May began his essay lamenting that the U.S. had no buried treasure to it strong in a time of "economic distress," he quickly made the argument that it did. Recent discoveries of vast amounts of domestic and Canadian shale oil and gas that petroleum engineers can now access inexpensively are one part of that treasure. Laying hold of it, May wrote, will "enhance both economic and national security" of the U.S., which has now become a net exporter of petroleum products. An ample domestic supply of many fuels also provides "insurance" against $200 per barrel oil in the event of conflict in the Middle East.

Though the government should not pick winners and losers, May believes that sound policy may usefully do three things: "Make transportation fuels more abundant, more diverse, and cheaper.;" reduce dependence on imports from hostile governments; and restore a competitive market for fuels, which should include an end to ethanol subsides and import tariffs. Those tasks require responsible regulation, proper incentives, and acceptance of "competent studies" indicating that new methods need not cause "environmental harm."

Should the government encourage exploitation of the oil in the Gulf of Mexico and Alaska and open for exploration both federal...