Skyrocketing energy costs have, among other effects, led to interesting political maneuvering. Specifically, the question of expanding of domestic energy resources (e.g., offshore drilling) has become live for this first time in decades. For that to happen in the current Congress, of course, requires that there be at least a certain measure of bipartisan consensus. As Michael Franc explains on NRO today, there have indeed been a few Democratic defections to the pro-drilling side. These Democrats are caught between the popularity of expanded oil and gas exploration on one side and, on the other, both the traditional Democratic allegiance to the enviornmental lobby as well as the unyielding stance of the Party’s leadership.
Lifting restrictions on drilling will assist the market in creating additional supply, even as demand has already been affected by rising prices. It is important that environmental concerns not be tossed to the wind in a rush to relieve the strain on American pocketbooks, but that seems unlikely in the current political environment. In fact, the negative environmental impact of drilling in places like ANWR has always appeared questionable. It seems more likely that opposition to offshore and other drilling was fueled by NIMBY sentiment rather than demonstrably significant environmental damage.
There is the argument that offshore drilling will have little impact on prices, at least or especially in the near future. It is important that the potential for such sources be assessed realistically and not exaggerated, but the “10 years from now” objection is not compelling. If it’s a good thing to do, then we should start. Not doing so simply pushes the horizon ten years further down the road.
By no means can I claim the ability to weigh accurately the costs and benefits of expanding domestic energy exploration. That’s why it’s important to let the price mechanism operate freely and let the market respond in turn. If lifting drilling restrictions moves us in that direction, then I favor it.