In a modern world, energy independence is an ever growing concern as our country’s infrastructure, economy, and safety become more entangled by the day with the ability to access reliable energy. This means we need to responsibly take advantage of our domestic resources and transform the oil under our feet into energy that will sustain and strengthen U.S. status throughout the world.
The recent passage of the Tax Cuts and Jobs Act furthers this very objective. But how does a tax cut bill lead to increased energy independence you may ask? Well a provision in the new law opens up part of the Arctic National Wildlife Refuge for oil exploration—a location in Alaska referred to as area 1002. It’s estimated that this specific coastal area contains 10.4 billion barrels of attainable oil—capable of producing one million barrels per day. According to the U.S. Geological Survey, this could account for 20 percent of daily oil production in the U.S.
But how does this affect you (besides the larger geopolitical implications)? Short answer: financial savings at the gas pump. Simple economics tells us that as supply rises, prices fall. So as more oil flows into domestic markets from the new drilling locations, your family road trips are going to get a whole lot cheaper.
And these benefits easily outweigh the potential negative impacts. The legislation only opens up 2,000 acres—or 0.01 percent—of the wildlife refuge to drilling. So there is little cause for environmental concern.
The Tax Cuts and Jobs Act is a win-win policy. It not only brings tax relief to millions of small business job creators across the country, but also provides the U.S. with the opportunity to become more energy independent while saving you a few dollars at the gas pump. That’s something we can all get excited about in 2018.