Obama Announces Plan To Explore Offshore Drilling

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."

Senators Join T. Boone Pickens In Support of Natural Gas Vehicles

By Joseph Russell- Talk Radio News Service

Senators Orrin Hatch (R-Utah) and Robert Menendez (D-N.J.) held a press conference Wednesday with billionaire clean energy advocate T. Boone Pickens to present the bipartisan New Alternative Transportation to Give Americans Solutions Act (NAT GAS), which aims to provide financial incentives for the use of natural gas.

“Our economic crisis has shined a spotlight on the urgent need for alternative, cleaner, and cheaper sources of energy that we don’t have to import,” Menendez said. “By making it easier and cheaper to own a vehicle that runs in natural gas, we can help families save money on energy, create new manufacturing jobs and clear our air.”

According to Pickens' website, www.PickensPlan.com, the U.S. possesses a secure and abundant supply of natural gas, with estimated domestic reserves nearly twice that of petroleum. The website also claims that natural gas is 85 percent cleaner and 75 percent cheaper than petroleum.

"We have dramatically increased our nation’s natural gas reserves. We have much more natural gas than we thought we had just a few years ago. And there is a sufficient supply to significantly increase the use of cleaner, greener fuel, as a transportation fuel," explained Hatch.

The NAT GAS Act will extend and increase tax credits for natural gas vehicles and refueling for state and local governments, as well as manufactures.

A Futuristic Grid and Fossil Gas are Energy’s New Pillars

Coffee Brown University of New Mexico, for Talk Radio News Service

During two energy conferences in Washington, DC, Secretary of Energy Dr. Steven Chu said that a new, expanded, robust, and smart electric grid is the big ticket item for his department in the just-signed stimulus bill (American Recovery and Reinvestment Act).

We are moving away, he said from locally produced power in pursuit of alternative energies, such as wind and solar, which are favored by geography in sparsely populated areas. As energy is produced in a fluctuating pattern due to local weather, and then sent farther away, a computerized grid which can direct, even out, monitor and store power will be needed. This coordination will extend even to homes, where fluctuations in use or peak draws can be managed to limit brown- and black-outs. he described circadian pricing, rewarding users who shift usage away from peak hours, and buy-back credits for homes which actually produce power as examples of smart distribution at the home level.

Chu noted that the new grid could be a target, so robust design was a security priority.
While wind power is as high as 20 percent in some areas, it is only three percent of overall production, and will need to mature and expand over a decade or more to compete on a cost-per-kilowatt basis.

Chu has made a priority of streamlining funding of shovel-ready projects, which were facing delays of up to two years for approval.

At the second conference, chaired by Senate Majority Leader Harry Reid, and attended by entrepreneur and hedge fund manager T.Boone Pickens, the question of new regulatory agencies came up, as power distribution became less regional and more interconnected. Reid said that he thought it could be handled administratively.

Pickens said that there are vast reserves of natural gas at several fields in the U.S., far more than would be needed to bridge the gap to non-carbon pumping energy production. Trucks, he said, can never run on batteries but can easily be converted from gasoline to natural gas, which is 30 percent cleaner and would create many American jobs and businesses.

Chu concluded by saying that carbon capture and climate change are important topics that will be addressed in later stages of the program.