When the National Ocean Industries Association held its annual meeting in Washington, DC, last week, it was against a significantly improved outlook for gaining access to more of the Outer Continental Shelf. One year earlier, congressional OCS moratoriums and presidential withdrawals seemed firmly in place. As NOIA’s 2006 meeting opened, however, four bills that potentially could expand OCS leasing were before the 109th Congress.
“There seems to be a growing appreciation among decision-makers that it no longer makes sense to ignore the safe production of the vast energy resources on the nation’s OCS,” NOIA Pres. Tom Fry said before the meeting. “We’re encouraged that there are several pieces of legislation that reconsider the blanket prohibition against exploring and developing our nation’s existing domestic energy resources,” he said.
NOIA’s incoming chairman, Hydril Co. Chief Executive Christopher T. Seaver, called the outlook “better than 14 months ago” but said, “Unfortunately, it’s because there’s an energy crisis.” He pointed out that “there are still a lot of people opposed to drilling offshore.”
Peterson and others
NOIA was scheduled to hear from Rep. John E. Peterson (R-Pa.), who has reintroduced his bill from 2005 to lift leasing moratoriums. Rep. Bobby Jindal (R-La.) introduced HR 4761 on Feb. 15. It includes a provision requiring the secretary of the interior to include oil and gas lease sales of at least 75% of the available acreage in each 5-year OCS program.
On the other side of the Capitol, Sens. John Warner (R-Va.) and Mark L. Pryor (D-Ark.) introduced S 2290, which would give coastal states the option of withdrawing from existing moratoriums in 2007, the same day.
It was immediately referred to the Energy and Natural Resources Committee, which sent S 2253-a bill developed by Chairman Pete V. Domenici (R-NM) and chief minority member Jeff Bingaman (D-NM) to expand leasing in the eastern Gulf of Mexico’s Sale 181 area-to the full Senate on Mar. 8.
Virginia energy plan
Activity also has continued in Virginia, where State Sen. Frank Wagner (R-Virginia Beach) developed legislation establishing a state energy strategy that includes possible offshore gas development under specific conditions. It has been sent to Gov. Timothy M. Kaine after passing both the Senate and House of Delegates.
In a floor speech introducing the bill, Warner said he initially wanted to include oil but decided to accept limiting leasing to gas so the measure could proceed. Industry officials take a similar position. “Many people don’t realize that producers can’t pick and choose what comes out of the formation,” said Lee O. Fuller, vice-president of government affairs at the Independent Petroleum Association of America. “But we don’t want these questions to interfere with the advocacy.” The message seems to be getting through. “Things have changed dramatically the last 3 years. Deaf ears have become open ears,” observed Anadarko Petroleum Corp. Chief Executive James T. Hackett.✦
