News
June 19, 2008
Drilling ban is a myth, figures show

On Wednesday morning, President Bush proposed what might have seemed like a slam-dunk solution to America's growing pain at the pump: End the "legislative ban" on offshore oil drilling.

By mid-afternoon, Rep. Shelley Moore Capito, R-W.Va., had joined Bush. Capito issued a news release headlined "Congress must lift drilling ban."

But by the Bush administration's own figures, offshore drilling accounts for 27 percent of domestic oil production. And the vast majority of offshore U.S. reserves are already open to leasing by the industry, government data shows.

As Democratic chairman of the House Natural Resources Committee, Rep. Nick J. Rahall is in the thick of the congressional debate over energy policy. Over the last few weeks, Rahall has argued vigorously that the country should not try to drill its way toward cheaper gas. Opening up more public lands - or offshore oil reserves - is not the answer to $4-a-gallon gasoline, Rahall says.

"We have found that the oil industry is sitting on 68 million acres of federal oil and gas leases, the size of Colorado," Rahall said Wednesday. "They are stockpiling them. Opening up even more areas only gives them an opportunity to speculate even further.

"It is like your children trying to eat their dessert before the main course," Rahall added. "The oil industry needs to drill what they have now, drill in those areas available to them, and then we will talk about giving them dessert."

This week's edition of the Washington gas prices debate focused on oil production from the outer continental shelf, or OCS.

The OCS is the portion of the submerged seabed where minerals are subject to federal jurisdiction. This area generally extends from 3 to 200 miles offshore and covers about 1.76 billion acres.

A 1953 law established federal jurisdiction over the mineral reserves there, and subsequent laws have encouraged development of those reserves, but also restricted drilling in various ways.

In January 1969, a blowout at a Union Oil platform five miles offshore of Santa Barbara, Calif., sent 3 million gallons of crude into the channel and onto the beaches. The incident prompted a citizen movement against offshore drilling, and led to a congressional moratorium affecting certain areas starting in 1982.

Lawmakers added more areas to the moratorium piece by piece. Those restrictions are renewed yearly as part of the government budget process, with language prohibiting the Interior Department from issuing leases. Also, in 1990 then-President George H.W. Bush issued a presidential order for a broad moratorium that remains in place today.

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Posted By: stollcat (9:14pm 06-20-2008)
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With oil topping $130 a barrel, it seems odd that oil companies would ignore untapped oil in the ground, when it is currently so valuable. Logic and common sense tell me that these current leases must not possess significant amounts of crude, or the regulatory burdens are too high to make it financially viable.

Posted By: WVState (11:37pm 06-19-2008)
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But only one side is what Bush and Capito are offering. They aren't claiming that the oil leases already available are worthless.

Posted By: homer (5:08pm 06-19-2008)
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seth, thanks for the info. The Isntitute may support oil drilling, and makes one question the data. But Rahall (and maybe the Gazette) perhaps opposes drilling, so one should not question their statements? Wouldn't it be helpful for reeders to have more informaton instead of just enough to support one side?

Posted By: Seth (1:28pm 06-19-2008)
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The Institute for Energy Research is funded by oil companies and headed by a guy who used to work for Enron. It's not surprising they support drilling wherever they can.

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