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Obama’s Offshore Oil Drilling Kabuki Dance

Posted on March 31, 2010 in: General News

Today President Obama announced his new plan for offshore drilling, many see this as the first step toward easing the way for cap-n-trade, others are saying this is nothing more than a political Kabuki Dance.
The simple fact is, as IER points out, the moratorium that’s prevented leasing in these areas was lifted two years [...]

Today President Obama announced his new plan for offshore drilling, many see this as the first step toward easing the way for cap-n-trade, others are saying this is nothing more than a political Kabuki Dance.

The simple fact is, as IER points out, the moratorium that’s prevented leasing in these areas was lifted two years ago. The only thing standing in the way of drilling ever since has been the president himself.

IER also explains why this announcement actually puts part of the moratorium back in place.

…the Institute for Energy Research caution lawmakers, the media, and the American people from rushing to conclusions until all the facts are on the table. This is a huge step backward for America’s energy security.

Prior to today’s announcement, the vast majority of OCS areas were open for business. No longer. Today, while President Obama may have stated his support for increased energy development in the Eastern Gulf (which requires congressional action) and the Southern Atlantic (which he’ll study over the next year), he also announced that he would delay the development of the energy resources off Virginia’s coast and lock up vast resources off the Alaskan coast.

Additionally, those who cheer the President’s new found support for domestic energy resources should remember that the very same President’s FY 2011 budget proposal includes upwards of $36 billion in new oil and natural gas taxes, which will discourage domestic production, especially in areas like the Southern Atlantic that have little to no existing infrastructure. While today’s rhetoric made for a good news cycle, the policy is not a step forward, but a huge leap backward.

Michelle Malkin remindes us he was against it before he was for it!

Michelle also offers this from The American Energy Alliance

“One major flashpoint in the negotiations has been whether to share drilling revenue with states and to allow states to opt in or out of drilling along their coastlines. It was unclear late Tuesday whether Obama endorses revenue-sharing for states. “It appears the Northern Atlantic and entire Pacific Coast will now be under a de facto ban” for drilling, said Patrick Creighton, a spokesman for the Institute for Energy Research. Even if drilling is ultimately allowed in part of the Atlantic, Creighton said, revenue sharing is an essential incentive for states. The administration’s plans could meet resistance from at least 10 Senate Democrats representing coastal and Great Lakes states who last week raised concerns about “unfettered access to oil and gas drilling” that could jeopardize fishing, tourism and military exercises. The Interior Department retooled the current schedule of offshore leases governing 2007 through 2012 after a federal appeals court last April ruled that the second Bush administration had not done a sufficient environmental review of expanded drilling off the Alaskan coast.

Obama Administration Places Vast Majority of OCS Off Limits

Although President Obama today announced what he called the “expansion of offshore oil and gas exploration,” in reality the President LOCKED UP more land to American energy production – as shown on the maps below.


Under the Presidential and Congressional Moratoria in place from 1981 through September 2008, all of the Atlantic and the majority of the Pacific were off-limits to offshore drilling.

**********************************************************


In 2008, facing record gas prices, Congress and President Bush both announced an end to the decades-long ban on offshore drilling.  This opened 500 million additional acres for new energy production that contain an estimated 14 billion barrels of oil and 55 trillion cubic feet of natural gas.

After the moratoria were lifted, the Bush Administration issued a 2010-2015 OSC leasing plan, and solicited comments on all aspects of the plan.  The proposal included 31 OCS lease sales in all or some portion of the 12 of the 26 planning areas—4 areas off Alaska, 2 areas off the Pacific coast, 3 areas in the Gulf of Mexico, and 3 areas off the Atlantic coast.

**********************************************************


Under President Obama’s new plan, the majority of the areas that were open for drilling once the moratoria were lifted are now once again closed. This includes all of the Pacific Coast, the Northeastern Atlantic and Bristol Bay in Alaska.

The Pacific Coast alone holds an estimated 10.5 billion barrels of oil—almost 75 percent of the total amount available off the U.S. coastline in former Moratoria areas and 18 trillion cubic feet of natural gas.

The Northern Atlantic region, which will remain completely closed, contains an estimated 17.99 trillion cubic feet of natural gas.

In total, the new Obama OCS plan puts 13.14 billion barrels of oil and 41.49 trillion cubic feet of natural gas under lock and key.

The Administration is delaying plans to drill in the Atlantic off of Virginia’s coast until 2012– discarding a lease sale that was scheduled to take place in 2011.

The Administration will only consider development of the Mid-Atlantic, Southern Atlantic, Chukchi and Beaufort Sea following Draft Environmental Study work to be conducted over the next year.  It has NOT actually planned lease sales for these areas.

Although the Administration will allow drilling in a portion of the Eastern Gulf of Mexico – this can only happen if Congress lifts the ban that is in place until 2022.  The Administration has not sent proposed language to make this change to Congress yet.


Technically Recoverable Undiscovered Resources (MMS 2006 Resource Assessment):
Available within areas previously under appropriations moratoria:

CLOSED BY THE NEW 2012 Obama OCS PLAN
Area                                                     Acreage (millions)            Oil (Bbbl)             Natural Gas (Tcf)
Northern Atlantic                                 97.46                                 1.91                      17.99
Southern California                              88.99                                  5.74                      10.03
Central California                                43.68                                  2.31                       2.41
Northern California                             44.79                                   2.08                       3.58
Washington-Oregon                           71.02                                   0.40                       2.28
Eastern GOM (in 50mi[1])                 21.00                                   0.70                       5.2
Total:                                               366.94                                 13.14                     41.49

CLOSED TO LEASING BUT PROPOSED FOR STUDY
OR AWAITING ACTION BY CONGRESS IN THE NEW Obama OCS PLAN
Mid-Atlantic                                       110.53                                  1.50                        15.13
South Atlantic                                     50.99                                    0.41                        3.86
Eastern GOM (50mi)                          44.0                                      2.6                          16.1
Total:                                                 205.52                                 4.51                        35.09

[1] Today’s Administration proposal will make fewer resources available than actually shown in these tables.  The Administration proposal mandates a 125 mile barrier around the Eastern Gulf of Mexico if opened by Congress.  The estimates in these tables are based on a 50 mile barrier as proposed by the Senate Gang of 10 in 2008.

This came from leader Boehner’s office:

Boehner: Obama Administration’s Decision Keeps Vast Majority of America’s Offshore Energy Resources Off Limits

GOP Leader: “Keeping the Pacific Coast and Alaska, as well as the most  promising resources off the Gulf of Mexico, under lock and key makes no sense at a time when gasoline prices are rising and Americans are asking ‘Where are the jobs?’”

WASHINGTON, DC – House Republican Leader John Boehner (R-OH) today criticized the Obama Administration for refusing to listen to the American people and keeping the vast majority of America’s offshore energy resources off limits at a time when Americans want an “all of the above” strategy for promoting American energy production and creating American jobs:

“The Obama Administration continues to defy the will of the American people who strongly supported the bipartisan decision of Congress in 2008 to lift the moratorium on offshore drilling not just off the East Coast and in the Gulf of Mexico, but off the Pacific Coast and Alaskan shores as well.  Opening up areas off the Virginia coast to offshore production is a positive step, but keeping the Pacific Coast and Alaska, as well as the most promising resources off the Gulf of Mexico, under lock and key makes no sense at a time when gasoline prices are rising and Americans are asking ‘Where are the jobs?’

“It’s long past time for this Administration to stop delaying American energy production off all our shores and start listening to the American people who want an “all of the above” strategy to produce more American energy and create more jobs.  Republicans are listening to the American people and have proposed a better solution – the American Energy Act – which will lower gas prices, increase American energy production, promote new clean and renewable sources of energy, and encourage greater efficiency and conservation.

“At the same time the White House makes today’s announcement, the Environmental Protection Agency (EPA) is plotting a new massive job-killer that the American people can’t afford: a cascade of new EPA regulations that will punish every American who dares to flip on a light switch, drive a car, or buy an American product.  Americans simply don’t want this backdoor national energy tax that will drive up energy and manufacturing costs and destroy jobs in our states and local communities.”

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  1. Posted March 31, 2010 at 10:24 pm

    [...] Obama’s Offshore Oil Drilling Kabuki Dance [...]

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