Perhaps it was because of the proposed multibillion-dollar Wall Street bailout that the expiration of US Outer Continental Shelf leasing moratoriums on Sept. 30 went largely unnoticed (see p. 39). But it’s likelier that nearly everyone involved recognizes the fight isn’t over.
“Lifting the decades-old ban is good news for the millions of American consumers calling for the ban to be lifted, but it is only the first step. Congress should avoid reimposing this ban or any other obstacles to US oil and natural gas resources,” said the American Petroleum Institute.
That same day, Natural Resources Defense Council official Rob Perks said, “Sadly, many elected officials who get that drilling won’t lower prices at the pump or put a dent in our country’s oil dependence nevertheless were unable to stop Big Oil and its friends in Congress.”
“And in this election year, President Bush’s threatened veto of a federal spending bill authorizing renewal of the drilling ban made the risk of a government shutdown too great for the Democrats to ignore,” he continued on API’s web site.
Opposition remains
Oil and gas association leaders agreed that congressional OCS leasing opponents, while toning down their rhetoric, are still firmly against opening new US offshore areas.
They pointed to the House bill passed Sept. 16 banning leases up to 50 miles offshore. From 50-100 miles, a state could have authorized federal leasing (if neighboring states didn’t object), but it would be ineligible for a share of federal revenues.
Association executives said such provisions made the bill questionable; House Republicans called it a sham.
Still, some considered the OCS moratoriums’ expiration a milestone. “Not only is Congress tackling the problem of rising energy prices head on by encouraging domestic energy development, we are doing so by working together across party lines,” Senate Majority Leader Mitch McConnell (R-Ky.) said after the continuing resolution passed by 78 to 12 votes.
Refused to discuss it
Others were less upbeat. Sen. Thad Cochran (R-Miss.) said a continuing resolution became necessary when Democrats refused to allow OCS leasing amendments.
The result? “Before us, we now have an appropriations bill that does exactly what the majority hoped to avoid . In the process of getting to that result, however, members of the House and Senate Appropriations Committees have been denied the opportunity to debate and offer amendments to the other appropriations bills,” he continued.
Sen. Robert Menendez (D-NJ) contended: “Expanded OCS drilling is bad energy policy, bad environmental policy, and it will do nothing to lower the prices at the pump, now or ever. This country deserves a serious debate about energy and not just election year posturing.”
Senate Energy and Natural Resources Committee Chairman Jeff Bingaman (D-NM) sent a clear signal on Sept. 25 when he told reporters: “We’ll revisit this issue next spring.”
