Bush ends presidential OCS drilling ban, pressures Congress

Nick Snow
Washington Editor

WASHINGTON, DC, July 14 -- Responding to congressional Republicans' calls that he make the first move, US President George W. Bush has lifted a presidential ban on leasing oil and gas acreage on the US Outer Continental Shelf.

"It's been almost a month since I urged Congress to act, and they've done nothing," Bush said in a July 14 statement. "They've not moved any legislation. And as the Democratically controlled Congress has sat idle, [gasoline] prices have continued to increase," he added.

"Failure to act is unacceptable. It's unacceptable to me and it's unacceptable to the American people. So today, I've issued a memorandum to lift the executive prohibition on oil exploration in the OCS. With this action, the executive branch's restrictions on this exploration have been cleared away. Now the ball is squarely in Congress's court," Bush continued.

Congress still has to repeal moratoriums it has placed on 85% of the OCS before leasing can take place. House and Senate reactions generally followed party lines as most Republicans applauded the president's action and most Democrats condemned it. "The Bush plan is a hoax. It will neither reduce [gasoline] prices nor increase energy independence. It just gives millions more acres to the same companies that are sitting on nearly 68 million acres of public lands and coastal acres," House Speaker Nancy Pelosi (D-Calif.) said.

House Majority Leader Steny H. Hoyer (D-Md.) said Bush's announcement simply was another effort to divert attention from 6 years of the administration's failed energy policies. "It isn't about legitimate drilling access; it's about political messaging access," he said. "The president could have chosen to work with congressional leaders to promote responsible oil and gas production. It's clear that he wants political ads, not answers," he maintained.

Counting on Congress
But Republicans said Bush's action puts more pressure on House and Senate Democratic leaders. "Only Speaker Pelosi and her colleagues in the Democratic leadership stand in the way of responsible deepwater oil and gas exploration to help reduce [gasoline] prices. As American families and small businesses face record prices at the pump, they are counting on their leaders in Congress to work together on reforms to help reduce fuel costs," added House Minority Leader John Boehner (R-Ohio).

"The American economy is being dragged down by high energy prices, and President Bush today is demonstrating that he's serious about fixing the problem. With this announcement, it is now crystal clear that the only thing standing in the way of lower energy prices at the pump through increased production is Democrats in Congress," said Sen. Pete V. Domenici (R-NM), ranking minority member of the Energy and Natural Resources.

Not every congressional Democrat condemned Bush's action. Sen. Mary L. Landrieu (La.) said that she supported it. "I only wish he would have taken this important step earlier, which would have helped to negate these high prices, and had not waited until the waning days of his presidency. Congress should respond by strategically lifting the congressional moratoriums, and providing the option to states to expand drilling off their shores," she continued.

But many Democrats did condemn it. Sen. Dianne Feinstein (D-Calif.) said that Bush's move was "a false promise on which he can't deliver. The fact is this: The president is deluding the public into believing that new offshore drilling is a quick fix to $4/gal gasoline. Nothing could be further from the truth. We cannot drill our way out of this problem."

Another OCS leasing opponent, Sen. Bill Nelson (D-Fla.), said that the president "cruelly is misleading Americans for attempted political gain. He knows ruining our coastlines won't bring down gasoline prices nor solve our energy challenges. In fact, a recent report from inside his administration's own energy office found that increasing offshore drilling will have no impact on [gasoline] prices."

'Lands with a plop'
Republicans clearly relished the change. "A ban on drilling in the same gulf that's open to Venezuelans, Indians, Vietnamese, and Cubans never made much sense except as a political barricade erected by anti-oil environmentalists in and out of Congress. Now that the president is voiding the old executive order, the issue lands with a plop on Nancy Pelosi and [Senate Majority Leader] Harry Reid's collective lap. I hope they can figure out a way not to automatically talk themselves into a frenzy of opposition that prevents real action to lower gasoline prices," said Rep. Joe Barton (R-Tex.), the Energy and Commerce Committee's ranking minority member.

Rep. John E. Peterson (R-Pa.), who has introduced several bills to repeal congressionally imposed OCS leasing moratoriums, said that Bush's action eliminated one of many hurdles. "Make no mistake: The price at the pump and sky-high natural gas prices are the result of 27 years of failed Washington policies. The politics of fear, implored by 14 consecutive Congresses and three presidents at the behest of radical environmental groups like Greenpeace, Sierra Club, and the Center for Biological Diversity are the reasons Americans are paying record prices for energy," he declared.

Bush's move followed a week of actions by congressional Democrats that suggest they are feeling growing pressure from constituents to increase domestic oil and gas production.

Soon after Congress returned July 7 from its Independence Day recess, Pelosi urged Bush to release crude oil from the Strategic Petroleum Reserve to put downward pressure on prices. Hoyer and other House Democratic leaders on July 10 proposed leasing within the National Petroleum Reserve-Alaska instead of the Arctic National Wildlife Refuge. And Reid (D-Nev.) said on July 11 that instead of calling on Congress to open more acreage, Bush should "tell his friends to start drilling in the land they already have."

Meanwhile, Republicans are tying their calls for increased domestic access to oil and gas resources to more aggressive energy consumption and alternative energy research and development. "Lifting the ban is a key part of the House Republicans' 'all of the above' energy plan to lower fuel costs. Enacting this plan, which would increase production of American energy, improve energy efficiency and conservation, and encourage investment in groundbreaking research in advanced alternative and renewable energy technologies, will signal to the rest of the world that America will leave no stone unturned in our efforts to bring down fuel costs," Boehner said.

Peterson and Rep. Neil Abercrombie (D-Hi.) are scheduled to announce July 15 the formation of a bipartisan House working group to develop new energy legislation. There also have been reports that politically centrist senators from both parties and their staffs have been meeting for a similar purpose.

Contact Nick Snow at nicks@pennwell.com

Related Articles

FERC issues final EIS for proposed LNG project near Baltimore

12/19/2008 The Federal Energy Regulatory Commission's staff identified additional adverse environmental impacts as it issued a final environmental impact stat...

MMS chief hopes next president, Congress won't reinstate OCS bans

12/19/2008 US Minerals Management Service Director Randall B. Luthi said on Dec. 9 that he hopes the Obama administration and Congress seriously consider expa...

Gran Tierra defers Colombian pipeline project

12/17/2008 Gran Tierra Energy Inc., Calgary, has deferred a 100-km pipeline project in Colombia connecting Costayaco field to the Orito gathering facilities.

Petrobras gets loan for Revap refinery upgrades

12/14/2008 Brazil's Petrobras has borrowed ¥750 billion from a consortium of Japanese banks to finance its investments in the 226,000-b/d Henrique Lage (R...

CCS ends purchase of Newpark Environmental Services after FTC sues

12/12/2008 Newpark Resources Inc. and CCS Inc. agreed on Nov. 24 to cancel the proposed sale of Newpark's US environmental services business to CCS. The Feder...

PetroSA awards contract for South African refinery

12/08/2008 PetroSA has let a feasibility and front-end engineering and design contract to KBR for its 400,000 b/d refinery in the Coega industrial development...

MMS begins preparation process for 2011 lease sale off Virginia

11/28/2008 The US Minerals Management Service took the first step on Nov. 12 toward holding an offshore oil and gas lease sale off Virginia in 2011.

Sakhalin-2 set to deliver LNG in February

11/25/2008 The Sakhalin-2 project is expected to begin deliveries of LNG to Japan on Feb. 19, 2009, according to an executive of the Sakhalin Energy Investmen...

Myanmar awards China pipeline rights

11/20/2008 Myanmar has awarded China the right to manage planned pipelines that will transport crude oil and natural gas from the Bay of Bengal across Myanmar...
White Papers

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by
Available Webcasts


OGJ's Midyear Forecast 2015

When Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

register:WEBCAST


Predictive Analytics in your digital oilfield - Optimize Production Yield and Reduce Operational Costs

When Tue, Jul 7, 2015

Putting predictive analytics to work in your oilfield can help you anticipate failures, plan and schedule work in advance, eliminate emergency work and catastrophic failures, and at the same time you can optimize working capital and improve resource utilization.  When you apply analytic capabilities to critical production assets it is possible to reduce non-productive time and increase your yield.

Learn how IBM's analytics capabilities can be applied to critical production assets with the goal of reducing non-productive time, increasing yield and reducing operations costs.

register:WEBCAST



On Demand

Cognitive Solutions for Upstream Oil and Gas

Fri, Jun 12, 2015

The oil & gas sector is under pressure on all sides. Reserves are limited and it’s becoming increasingly expensive to find and extract new resources. Margins are already being squeezed in an industry where one wrong decision can cost millions. Analyzing data used in energy exploration can save millions of dollars as we develop ways to predict where and how to extract the world’s massive energy reserves.

This session with IBM Subject Matter Experts will discuss how IBM Cognitive Solutions contribute to the oil and gas industry using predictive analytics and cognitive computing, as well as real time streaming for exploration and drilling.

register:WEBCAST


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected