OTC: Energy and military can coexist off Virginia
Paula Dittrick
Senior Staff Writer
HOUSTON, May 1 -- Proposed gas drilling off Virginia could coexist with the military's existing weapons testing and training exercises, industry spokesmen said during a news conference May 1 at the Offshore Technology Conference in Houston.
"We understand the importance of making sure the military training and weapons testing is done," said Dan Naatz, vice-president of government affairs for the Independent Petroleum Association of America.
In April, the US Pentagon wrote a letter to the US Minerals Management Service saying the Navy and other service branches require "unencumbered access" to portions of an area east of Virginia Beach.
The area is used to test-fire missiles, aircraft guns, and some 5-in. guns on ships. Navy pilots also practice aircraft carrier landings and takeoffs in that area. Virginia's economy hinges upon its military installations and tourism.
State Sen. Frank W. Wagner, a Republican, from Virginia Beach, acknowledged that the Navy's needs are a top priority to Virginia state and federal lawmakers, but he believes arrangements could be worked out between energy interests and defense interests.
Wagner introduced a comprehensive energy plan encouraging Virginia's congressional delegation and also federal agencies to support lifting a moratorium on natural gas leasing and development on the Outer Continental Shelf from 2007 through 2012.
The commonwealth's general assembly passed that bill (OGJ, Apr. 17, 2006, p. 24).
Virginia energy plan
"The [energy] industry needs to work" on easing the military's concerns, Wagner said May 1. "My constituents are sailors, who are struggling to pay their gasoline bills and utility bills just like everybody else."
Charles Davidson, Noble Energy chief executive officer and chairman of the IPAA Offshore Committee, agreed that industry could find ways to operate drilling rigs and production platforms without disrupting military exercises.
"Industry has shown, for a number of years, the ability to work around shipping fairways in the Gulf of Mexico," Davidson said. "It takes some planning ahead of time to define the areas that are critical."
Federal legislation
Naatz called Wagner's efforts to promote drilling off Virginia "a dynamic piece of a very complicated puzzle that is happening nationally."
Congress is showing increasing interest in oil and gas development because of rising energy demand and robust commodity prices, Naatz said, adding that both Republicans and Democrats are introducing energy legislation in the House of Representatives and the Senate.
"Industrial users and agricultural producers all want to try to find ways to increase domestic energy production. . .. People are looking to the offshore," Naatz said.
Hurricane damages
Regarding other issues, Davidson said safety and environmental protection remain top priorities for the offshore industry, adding that oil and gas facilities performed well during the hurricanes of 2005.
Out of 4,000 platforms in the gulf, hurricanes destroyed or damaged 165 of them, Davidson said. He noted no significant spills from offshore wells.
"All subsea wellhead safety valves held," Davidson said. "Offshore facilities and pipelines account for only 2% of oil spilled in US waters. Natural oil seeps introduce 150 times more oil into US waters than oil and gas operations."
New technology continues to enhance the industry's environmental and safety performance, he said.
Contact Paula Dittrick at [email protected].