Study casts doubt on ANWR potential
  by: OilOnline
  Tuesday, February 19, 2002

A study released by the U.S. Public Interest Research Group argues that Alaska's Arctic National Wildlife Refuge does not contain economically recoverable oil. The report, "False Profits: The Business Case Against Drilling in the Arctic National Wildlife Refuge," said drilling in the region could carry substantial risks for oil companies and their shareholders.

The study called the refuge an expensive and risky gamble. Evidence suggests that oil companies have little to gain from the refuge, but lots to lose - including their reputations, their ability to recruit employees, and potentially billions of wasted investment dollars, the study said.

According to the analysis, drilling in the Arctic Refuge fails oil companies' conservative investment criteria. While oil companies typically require projects like the Refuge to provide a 15 percent return on investment at prices as low as $12 to $16.50 a barrel, the U.S. Geological Survey estimates that there is no economically recoverable oil in the Refuge at prices less than $17.05 per barrel, the study pointed out. Using the companies' own assessment criteria, drilling of any sort in the coastal plain of the Arctic Refuge is unattractive, the group said.