Wednesday
Mar312010
Obama Announces Plan To Explore Offshore Drilling
Wednesday, March 31, 2010 at 11:59AM
President Barack Obama announced today that his administration will approve oil and gas exploration off parts of the nation's Atlantic and Gulf coasts.
"Given our energy needs, in order to sustain economic growth, produce jobs, and keep our businesses competitive, we’re going to need to harness traditional sources of fuel even as we ramp up production of new sources of renewable, homegrown energy," said the President during remarks delivered on Andrews Air Force Base in Maryland.
The announcement marks the end of a long-standing federal moratorium on offshore drilling, and comes as somewhat of a surprise to both critics and supporters of Mr. Obama, who until now has opposed the idea of opening up U.S. coastlines to drilling for energy resources.
The initiative involves a slight compromise between the administration and environmentalists. While government agencies will be allowed to conduct studies in parts of the Atlantic Ocean and the eastern Gulf of Mexico, no exploration will be allowed to take place in Alaska's Bristol Bay, considered an oil haven by drilling advocates.
"My administration will consider potential new areas for development in the mid and south Atlantic and the Gulf of Mexico, while studying and protecting sensitive areas in the Arctic. That’s why we’ll continue to support development of leased areas off the North Slope of Alaska, while protecting Alaska’s Bristol Bay," said Mr. Obama.
The President's slightly modified energy strategy will likely be viewed as an attempt to appease groups on each side of the issue. Oil and natural gas companies, who may have a chance in two years to lease areas the government deems suitable for drilling, should embrace the decision. On the other hand, environmental organizations, who oppose increased domestic drilling, should appreciate the administration's continued attempts to promote the development of renewable energy sources, an initiative Mr. Obama acknowledged on Wednesday.
"With less than 2 percent of oil reserves, but more than 20 percent of world consumption, drilling alone cannot come close to meeting our long-term energy needs, and that for the sake of the planet and our energy independence, we need to begin the transition to cleaner fuels now."
"Given our energy needs, in order to sustain economic growth, produce jobs, and keep our businesses competitive, we’re going to need to harness traditional sources of fuel even as we ramp up production of new sources of renewable, homegrown energy," said the President during remarks delivered on Andrews Air Force Base in Maryland.
The announcement marks the end of a long-standing federal moratorium on offshore drilling, and comes as somewhat of a surprise to both critics and supporters of Mr. Obama, who until now has opposed the idea of opening up U.S. coastlines to drilling for energy resources.
The initiative involves a slight compromise between the administration and environmentalists. While government agencies will be allowed to conduct studies in parts of the Atlantic Ocean and the eastern Gulf of Mexico, no exploration will be allowed to take place in Alaska's Bristol Bay, considered an oil haven by drilling advocates.
"My administration will consider potential new areas for development in the mid and south Atlantic and the Gulf of Mexico, while studying and protecting sensitive areas in the Arctic. That’s why we’ll continue to support development of leased areas off the North Slope of Alaska, while protecting Alaska’s Bristol Bay," said Mr. Obama.
The President's slightly modified energy strategy will likely be viewed as an attempt to appease groups on each side of the issue. Oil and natural gas companies, who may have a chance in two years to lease areas the government deems suitable for drilling, should embrace the decision. On the other hand, environmental organizations, who oppose increased domestic drilling, should appreciate the administration's continued attempts to promote the development of renewable energy sources, an initiative Mr. Obama acknowledged on Wednesday.
"With less than 2 percent of oil reserves, but more than 20 percent of world consumption, drilling alone cannot come close to meeting our long-term energy needs, and that for the sake of the planet and our energy independence, we need to begin the transition to cleaner fuels now."
Feds Tightening Rules For Deepwater Drilling
Fewer oil companies will qualify for categorical exclusions under the federal government’s continued moratorium on offshore drilling, said U.S. Department of Interior Secretary Ken Salazar yesterday.
“In light of the increasing levels of complexity and risk, and the consequent potential environmental impacts, associated with deepwater drilling, we are taking a fresh look at the [National Environmental Protection Act] process and the types of environmental reviews that should be required for offshore activity,” Salazar said in a statement.
The actions by the government are intended to redress a loose oversight policy that has allowed many large oil companies to circumvent regulations and receive permits to drill in domestic waters.
A new government report indicated that BP, whose Deepwater Horizon well exploded in the Gulf of Mexico on April 20, killing 11 workers and rupturing a well which spewed millions of gallons of oil into the Gulf for months, directly capitalized on a lax federal review process. The report, published by the White House Council of Environmental Quality, determined that BP was granted permission to drill its deepwater well based on exemptions established by federal regulatory agencies in the 1980’s, several years before the creation of new technologies allowed oil companies to drill a mile below the surface of the ocean.
On Monday, the head of the regulatory agency tasked by President Obama with more or less taking over the job previously performed by the Minerals Management Service (MMS), said increased scrutiny of the oil industry is needed.
“We are building a more robust and aggressive independent oversight agency based on the development of new tools and enhanced legal and regulatory authorities, as well as on the more aggressive use of existing tools,” said Bureau of Ocean Energy Management, Regulation and Enforcement Director Michael Bromwich.
“These changes in our regulatory framework and approach will serve to hold offshore operators accountable and ensure that the industry and the country are fully prepared to deal with catastrophic blowouts and oil spills like the Deepwater Horizon.”