New Moratorium Backed By Bureau Of Ocean Energy Management

by Miles Wolf Tamboli - Talk Radio News Service

One day after Interior Secretary Ken Salazar revealed a revised moratorium on offshore drilling in the Gulf, Director of the Bureau of Ocean Energy Management, formerly known as the Minerals Management Service, Michael Bromwich met with President Obama’s special BP-Deepwater Horizon Oil Spill and Offshore Drilling Commission in New Orleans to express his approval of Washington’s policies.

Bromwich contended that the decision to reinstate the ban was based on “extensive” information, and is focused on enhancing drilling safety and blowout containment capability, and developing better disaster response strategies.

Salazar’s appointed Bureau of Ocean Energy Management Director did concede that the moratorium was, “roughly congruent with the original moratorium,” but argued that this most recent ban is concerned with specific rig technologies, and not just the depth of the well.

“So long as the spill is out there, has not been contained, and that the oil spill response capabilities are all being consumed by the current spill, the Secretary concluded that it is simply too risky to allow deep water drilling to continue,” Bromwich said.

Senators At Odds Over Moratorium

By Miles Wolf Tamboli-Talk Radio News Service

The Senate Energy and Natural Resources Committee held a hearing Thursday to discuss a number of bills related to oil regulation and the Deepwater Horizon spill, which has just recently been re-capped after a pipe was allegedly damaged by a remotely-controlled robot, although oil can still be seen spewing from the pipe at an unknown rate.

However, lawmakers seem to have been distracted by debates over the 6-month moratorium on off-shore drilling exploration in the Gulf, which was lifted earlier in the week by a federal judge in New Orleans, as well as skepticism over the legitimacy of the presidential commission that recommended the drilling ban.

Sen. Mark Udall (D-Colo.) expressed the views of many legislators, saying that it is "common sense" to stop drilling, at least on the rigs that are in development and not yet producing oil, until the disaster can be better understood.

Louisiana Senator Mary Landrieu (D), however, stated that she "fiercely" disagrees with the moratorium. Although the ban only applies to 33 oil rigs, Landrieu argued that an economic analysis in the state has concluded that a moratorium could threaten 46,200 jobs and lost wages could amount to $5 to $10 million dollars per month.

The Senior Senator from the state that may prove to be the most impacted by the disaster cited job creation legislation Senator Debbie Stabenow (D-Mich.) is trying to pass, and stated that, "if we don't get this right we're going to eliminate every job that we're trying to create by putting people out of work in the Gulf."

Sen. John Barrasso (R-Wyo.) attacked the motives behind the President's oil spill commission, calling it, "stacked with people who philosophically oppose offshore exploration."

Interior Secretary Ken Salazar contended that the ban was, "not an ideological issue."

"With all due respect, the President, in choosing the members of this commission, chose the kinds of statesmen who, I believe, will transcend partisan politics and ideology," said Salazar.

Salazar Announces Strategy To Dissolve Culture Of Corruption In Wake Of Spill

By Miles Wolf Tamboli-Talk Radio News Service

Interior Secretary Ken Salazar outlined the reorganization of the Minerals Management Service, the federal regulatory authority that has been facing mounting criticism over its management of the Deepwater Horizon rig, during an appearance before a Senate Appropriations subcommittee.

"The Minerals Management Service is no more," Salazar said.

The agency has been split, explained Salazar, into three separate branches and renamed the Bureau of Ocean Energy Management, Regulation and Enforcement, or the Bureau of Ocean Energy, for short.

"We believe that its important to separate the leasing functions from the enforcement functions, and also to separate the revenue functions from the enforcement functions as well," added Salazar.

Michael Bromwich, the new director of the Bureau of Ocean Energy, appeared alongside Salazar Wednesday. Bromwich, a former Justice Department inspector general, told the Senators that the MMS lacked "investigative capability," and that he wishes to build an infrastructure for internal and external accountability, in part to address what many have called MMS', "culture of corruption."

Salazar Details Inner-Workings Of Interior Department Amid Oil Spill

By Miles Wolf Tamboli-Talk Radio News Service

In Wednesday's hearing before the House Committee on Natural Resources, Interior Secretary Ken Salazar extrapolated on his plan, released last week, to split the controversial Minerals Management Service into three distinct entities with the ultimate goal of increasing transparency, accountability, and effectiveness through specialization. Salazar announced that he hopes to "strengthen oversight of offshore energy operations, improve the structure for revenue and royalty collections on behalf of the American people, and help our country build the clean energy future we need," by establishing the Bureau of Ocean Energy Management, the Bureau of Safety and Environmental Enforcement, and the Office of Natural Resources Revenue.

Much of the impetus behind the restructuring is the result of recently released information about relationships between the MMS and the private oil industry. In a recent report released by the U.S. Department of the Interior, Inspector General Mary Kendall affirmed that members of the MMS accepted gifts, meals, and sports game tickets from oil executives. During the hearing, Salazar admitted that, in the past, accepting gifts from oil executives had become a "part of the culture," not just in the Obama administration, but among previous ones as well.

Another highly debated issue raised in the hearing was the particular drilling operation in question being granted a special exemption from the usual safety requirements demanded by the MMS. Salazar said Wednesday that this exemption was due to government legislation requiring the agency to complete the review of a drilling project in 30 days or less, limiting the MMS' ability to thoroughly investigate the situation. Termed the "use-it or lose-it" tax at the hearing, the legislation was originally intended to uphold efficiency in the energy resources industry, and government officials today implied that the bypassing of safety measures was an unintended side effect of the law.

House Natural Resources Committee member George Miller (D-Calif.) grilled Salazar on the MMS' lack of safety regulations, citing the fact that the oil industry's drilling technology has far outpaced the ability to prevent or clean up after accidents. Exclaiming that the MMS, "went to hell in a hand-basket," Miller expressed his discontent that, in his eyes, the MMS is irresponsible for allowing the oil industry to drill when their capacity to avoid a disaster such as this lags so far behind.

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."