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.”

Podesta Claims Gulf Coast Spill Could Be Oil's Final Nail In the Coffin

By Linn Grubbstrom - Talk Radio News Service

John Podesta, the head of the think tank Center for American Progress, said Tuesday that the disastrous oil spill off the Gulf Coast could be the catalyst to finally move the U.S. away from oil.

"It's our hope that 2010 will be remembered as the year the U.S. began to turn away from oil in a meaningful, serious way. We've been talking about it for probably 40 years now," said Podesta during a forum held by the National Italian American Foundation. "I think ... maybe 2010 will be that moment were we really do begin that long march towards cleaner sources of energy."

However, to be able to do that Podesta, who served as Chief of Staff in the Clinton administration, wants President Barack Obama and Congress to take several immediate steps toward the development of renewable energy.

"I would like to see him go faster, I would like to see the Senate move forward this summer," said Podesta.

Obama's Decision To Explore More Offshore Drilling Receiving Mixed Reviews

By Justine Rellosa
Talk Radio News Service

President Barack Obama's decision to open up areas in the Gulf of Mexico, parts of Alaska, and the Atlantic coastline for possible oil exploration has sparked swarms of reaction from both supporters and opponents of domestic offshore drilling.

In an interview with Talk Radio News Service, Christina Larson with the New America Foundation in Washington, D.C. said it is too soon to completely grasp the President's new policy, but said it reflects the administration's attempt to shift the debate from health reform to energy.

"This is sort of the opening bell of the discussion. It's not the end of the discussion by any means so it's really hard to say what it means, [or] who's going to be happy [and] who's not going to be happy," said Larson. "The one thing we do know is that the discussion in Washington is shifting from health care towards an environment that focuses on energy and climate issues."

Although Mr. Obama is already taking heat from Republicans who argue that his new initiative doesn't go far enough, he is receiving some bipartisan support. Rep. Mike Haridopolos (R-Fla.) told Talk Radio News Service on Thursday that he fully embraces the President's decision, calling it a good start toward making the U.S. completely energy independent.

"I think it is a very encouraging first step, I think that we could still do more," said Haridopolos."This should be part of an all-energy solution meaning not just oil, not just natural gas, but a combination of alternative fuels as well, meaning developing solar and bio-diesel and other things. But, I think this is a great first step it will help each of the states with royalties and it should also make sure that we are not dependent on foreign oil."

On Wednesday, two prominent Republicans, House Republican Conference Chairman Mike Pence (R-Ind.) and Rep. Kevin Brady (R-Texas) both released statements saying they were wary of Mr. Obama's announcement.

"I'm skeptical," said Brady. "Looking closely at the president's proposal, it will delay more than drill by pushing back leases and delegating drilling decisions in the eastern Gulf of Mexico to a Congress more obsessed with global warming than affordable American-made energy."

However, Haridopolos isn't on an island by himself when it comes to supporting the new initiative. Issac Hayes, a youth Minister from Chicago who is running this fall for the House seat currently occupied by Rep. Jesse Jackson Jr. (D-Ill.), released a statement on Wednesday echoing Haridopolos's sentiments.

"The President’s announcement to allow drilling along America’s coastline is long welcomed news. The off shore drilling ban has been an unwanted and unneeded moratorium on energy exploration...I am cautiously optimistic that this is not a smoke screen for a soon to come cap-and-trade bill jammed down our throats."

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."

Energy policy: Is there any right answer?

Speaking on the issue of offshore drilling, Fmr. Speaker of the House Newt Gingrich (R-Ga.) said, “You have to maximize oil production in the United States.”

In a discussion at the American Enterprise Institute for Public Policy Research (AEI), Gingrich advocated for clean coal technology calling the use of this technology “green conservatism.” Gingrich cautioned that if the United States tries other forms of technology too quickly, there is the possibility that the U.S. “doomed [itself] to no energy.” He called the costs of changing to other forms of energy such as wind, solar, and natural gas “a breathtaking investment.”

Gingrich was adamant that the U.S. does not have an energy crisis, but a “policy crisis.” He claimed that with its total range of resources, the U.S. “has the capacity to have ample energy at a reasonable price.”

Robert Hahn, Senior Fellow at AEI, said that offshore oil drilling would make little or no impact of domestic gas prices “anytime soon.” Hahn advised President -elect Obama to “limit his focus” on the issue of energy to potential investments and climate change. Hahn said that the potential jobs that would be opened by energy reform should not factor into Obama’s decisions. Hahn also cautioned that Obama not allow energy to turn “into complete political pork barrel” with potential wasted spending.

Irwin Stelzer, Senior Fellow and Director of the Hudson Institute’s Center for Economic Policy, said the U.S. cannot run solely on domestic oil because it is “too few and too costly.” However, he said that renewable energy cannot replace fossil fuels because it is too difficult and expensive to attain. He put down the idea of nuclear energy because he believes Congress will not solve the issue of nuclear waste disposal. Stelzer was not in favor or natural gas because he doesn’t believe it can replace liquid energy. He said that the U.S. could practice conservation if U.S. citizens want to live “as the Japanese.” Stelzer said that the U.S. will probably remain “heavily dependent” on other countries for oil.