STAUNTON As debates about climate change and health care engulf America, we cannot overlook a recent anniversary marking one lost year and counting. When Congress let expire the moratoria on oil and natural gas exploration in coastal waters, the economic possibilities of new jobs, trillions of revenue dollars, and bolstered energy security were finally within national reach. But thanks to governmental slow-pedaling, America now greets the anniversary of this major policy change with nothing but outturned pockets and continued delay.

Nearly 7 miles below the Gulf of Mexico, oil company BP has tapped into a vast pool of crude after digging the deepest oil well in the world. The Tiber Prospect is expected to rank among the largest petroleum discoveries in the United States, potentially producing half as much crude in a day as Alaska’s famous North Slope oil field. The company’s chief of exploration estimated that the Tiber deposit holds between 4 billion and 6 billion barrels of oil equivalent, which includes natural gas. That would be enough to satisfy U.S. demand for crude for nearly one year. But BP does not yet know how much it can extract.

Surge in crude prices during the past few months and less production from the refiners that make gasoline has added pressure on prices.

Gas prices have climbed nationally for almost 50 straight days as speculation about an economic recovery seems to have trumped market fundamentals. The national average rose a half-cent yesterday to $2.674 per gallon, according to auto club AAA, Wright Express and the Oil Price Information Service. How much higher will prices at the pump go? AAA predicts increases through the July Fourth holiday, but not dramatic swings such as those that walloped the nation last summer when prices topped $4 per gallon.

While crude settled above $70 a barrel yesterday for the first time this year, gasoline prices failed to rise for the first time in 42 days, signaling a possible break for motorists as summer driving shifts into high gear. Benchmark crude for July delivery rose $1.92 to close at $70.01 a barrel in trading on the New York Mercantile Exchange, hitting a new 2009 high of $70.18 during the afternoon.

Former Gov. and U.S. Sen. George Allen has launched an organization, the American Energy Freedom Center, to try to influence the public debate about energy. In a conference call with reporters Tuesday, Allen said coal, oil and natural gas are the solution to the nation’s energy problem. “The sun doesn’t shine all the time; the wind doesn’t blow all the time,“ he said, referring to alternative energy sources of wind and solar power.

Oil and gasoline prices continued a recession-defying march higher yesterday, doubling in the past six months largely on optimism of a strengthening economy. The predictions for just how high oil can reach this year, just like 2008, continue to creep upward just five months removed from crude priced around $32 per barrel. Benchmark crude for July delivery rose $1.23 to settle at $66.31 a barrel on the New York Mercantile Exchange.

OPEC oil ministers yesterday avoided the temptation to cut crude production and trample on the seedlings of economic recovery. Instead, they bet on prices floating higher as the recession eases and demand for oil picks up. With the world oversupplied with oil, yesterday’s meeting of the 12-nation oil-producing cartel could have opted to tighten the spigots—an option it often has exercised to raise prices in past times of anemic demand.

On this Earth Day, it is time for us to lay a new foundation for economic growth by beginning a new era of energy exploration in America. The choice we face is not between saving our environment and saving our economy—it’s a choice between prosperity and decline. Perhaps not, but until recently there has been a strong correlation between energy consumption and economic growth. See http://www.pewclimate.org/global-warming-basics/facts_and_figures/ fig18.cfm.

By ALEX KENNEDY
Associated Press Writer

Although recession-plagued Americans remain reluctant to burn much gasoline, prices at the pump are now creeping above $2 a gallon as oil prices have surged. The national average price of unleaded regular gasoline rose 2 cents to $2.01 a gallon yesterday, the highest in almost five months, the motor club AAA reported based on its daily survey of retail stores.

Geopolitical events are partly to blame for the recent uptick in the price of gasoline, but weak demand is still holding it down.

Expectations that OPEC will slash oil production by as much as 2 million barrels a day firmed yesterday after Saudi Arabia suggested that a reduction of that magnitude is likely. Such a cut, while not unprecedented, would be considerable given that OPEC already has taken that much oil off the market since September to stem crude’s slide.

PHOENIX When billionaire oilman and investor T. Boone Pickens launched his plan this summer to boost the use of wind and natural gas to ease American dependence on foreign oil, gasoline prices were at a record $4.11 a gallon and oil prices were at $147 a barrel. Now oil prices are at a 20-month low, falling to $59.33 a barrel yesterday, and gasoline prices have plummeted to below $2 a gallon in many parts of the country.