Drilling for Dollars

As I've stated before, energy is the backbone of the U.S. economy, and producing more domestic oil and natural gas could give a much needed boost to our ailing economy. For proof, consider this:

ICF International has released a study, commissioned by API, to examine the financial benefits of expanding oil and natural gas drilling in some of the areas that have been off limits to energy producers. The study found:

• Expanded U.S. oil drilling could produce an additional 2 million barrels of oil a day and offset about one-fifth of our oil imports by 2030;
• Natural gas production could increase by 5.34 billion cubic feet per day, or the equivalent of 61 percent of our expected gas imports by 2030; and
• Development of these resources could generate up to $1.7 trillion in new government revenue in the form of royalties, bonus bids and taxes.

How important is this revenue? Just ask Gov. Rendell of Pennsylvania. He is asking his state's legislature to transfer revenues from the leasing of Marcellus Shale drilling prospects into the General Fund to reduce the state's deficit.

The study results are available here.