Sen. Breaux predicts eastern Gulf of Mexico sale won't be expanded

Sen. John Breaux (D-La.) predicted Thursday that the Bush administration would not expand an eastern Gulf of Mexico offshore lease sale planned for Dec. 5. A Senate bill would permit the originally planned acreage to be offered in Sale 181.

Oct. 18, 2001

2 min read

By the OGJ Online Staff

WASHINGTON, DC, Oct. 18 -- Sen. John Breaux (D-La.) predicted Thursday that the Bush administration would not expand an eastern Gulf of Mexico offshore lease sale planned for Dec. 5, although a Senate bill would allow it.

A provision in a Senate appropriations bill would permit the originally planned acreage to be offered in Sale 181 (OGJ Online, July 13, 2001) although the House spending bill would postpone the sale.

The administration of President George W. Bush has taken the middle ground: Interior Sec. Gale Norton said acreage in the sale would be reduced to 1.5 million acres from the 5.9 million acres originally planned (OGJ Online, July 2, 2001).

A House-Senate conference committee is due to reconcile the two versions.

Breaux told a meeting of the Schwab Capital Markets Washington research group that there is not enough political pressure being applied to persuade the administration to expand Sale 181 at this point. Also, the Minerals Management Service already has issued a notice for the reduced sale (OGJ Online, July 12, 2001).

The opposition to the sale has come from Florida politicians concerned about the potential of pollution from drilling and exploration. Breaux said Sale 181 would be more than 100 miles from the Florida coast, but "a bunch of folks living in the lap of luxury want [the oil industry] to drill somewhere else. But I'm getting tired of Florida always saying, 'Not off my shore.'"

On other issues, Breaux said the pending economic stimulus legislation in the Senate will not be industry specific, dimming chances that oil and gas producers will get some long-sought tax reform measures (OGJ Online, July 27, 2001).

However, he said Congress might approve an extension of existing tax measures such as the Sec. 29 tax credit for unconventional production.

Breaux said an effort might be made to amend the economic bill to allow exploration and production on the coastal plain of the Arctic National Wildlife Refuge.

"There are ways to bring this up (ANWR). The risk of something happening [an oil spill] is greatly offset by the need to be energy self sufficient."

Breaux predicted Congress would not pass an energy policy reform bill before it recesses for the year, probably just before Thanksgiving. He said many congressmen "are not willing to face up to what's happening" to the nation's energy security.