US House Natural Resources panel passes offshore leasing ban bills

The US House Natural Resources Committee approved a pair of bills the evening of June 19 that would reimpose offshore oil and gas leasing bans in the eastern Gulf of Mexico and along the Atlantic and Pacific coasts. Several oil and gas industry associations and other groups strongly criticized the actions.

The committee passed the measures generally along party lines, with Democrats supporting and Republicans opposing the bills. HR 205, which Rep. Francis Rooney (R-Fla.) introduced on Mar. 2 to reestablish a leasing ban in parts of the eastern gulf, cleared the committee by a 24-12 vote, with two Republicans, Daniel Webster from Florida and Jennifer Gonzales Colon from Puerto Rico, voting aye.

It also approved HR 1941, which Rep. Joe Cunningham (D-SC) introduced on Mar. 28 with 28 cosponsors, by a 22-12 vote. The measure would reimpose federal oil and gas leasing moratoria that the Trump administration removed along the US Atlantic and Pacific coasts.

Oil and gas associations and similar groups were not pleased. “The bills debated and ultimately approved today by the committee are shortsighted,” International Association of Drilling Contractors Pres. Jason McFarland observed in Houston on June 19.

“The reality is demand for oil and natural gas will continue to rise for decades to come. Permanent moratoriums here in the US will only push this development to other countries which are happy for the tax dollars and job creation,” he said.

Access to domestic supplies

“As we send more troops to the Middle East and talk of military escorts for tankers through the Strait of Hormuz, it remains essential for our economic and national security that we boost oil production from politically stable countries and regions, including our own,” Securing America’s Future Energy (SAFE) Pres. Robbie Diamond said on June 19 in Washington.

“Any obstruction to harnessing domestic offshore resources not only postpones job creation in the US energy industry, but also means delaying more stable oil on the world market,” Diamond said.

“Reckless, open-ended moratoria curtail safe and reasonable offshore access, diminish energy security, and cost jobs, hurting American workers and consumers. Bills that continue to bar America’s offshore resources are simply bad energy and environmental policy,” National Ocean Industries Association Pres. Randall B. Luthi said before the committee’s votes.

“What’s more concerning is that the committee will simultaneously consider other bills that make the federal government even more dependent on the revenue generated by the offshore oil and gas industry for the Land and Water Conservation Fund and national parks maintenance,” he added. “This killing-the-golden goose philosophy of setting mandatory spending for offshore revenues while simultaneously limiting offshore production is an endeavor doomed to fail.”

Contact Nick Snow at [email protected].