Oil and gas industry leaders and their allies in Congress are blasting the Obama administration’s decision to retreat from its plan to expand offshore drilling along the Atlantic Coast and in the eastern Gulf of Mexico as foolish and unnecessary.
Rep. Doc Hastings, R-Wash., who is expected to head the House Natural Resources Committee next year, said the White House was “taking the wrong approach in responding to the BP spill” by essentially giving up on new offshore drilling.
“This plan to lock-up vast portions of America’s offshore energy resources is short-sighted and will lead to long-term job impacts, economic harm and increased reliance on foreign energy from dangerous and hostile countries,” Hastings said in a statement. “The Deepwater Horizon spill was a terrible tragedy, but this is a great country and we shouldn’t allow this single event to disrupt our long-term need for an all-of-the-above energy plan that includes the responsible development of our nation’s oil and gas resources.”
Jack Gerard, president of the American Petroleum Institute, said the decision was part of a “disturbing trend” away from domestic energy production and the action bucks administration officials’ repeated verbal assurances that oil and gas is essential. “We keep hearing the comments about we’re committed to oil and gas development, but that conflicts with everything . . . we see,” Gerard said. “Everything we hear is a bit at odds with what they’re doing.”
Gerard said President Barack Obama’s March 31 decision to take the first steps toward expanding offshore drilling put the U.S. on the right path, but “this decision effectively is a very significant reversal on this direction moving ahead.”
“In our view, this now shuts the door on new development and effectively ensures that the tens of thousands of jobs that could have been created will now not be created,” Gerard added.
Sen. John Barrasso, R-Wyo., said the administration was foolishly locking up offshore oil and gas resources “to score political points.”
And Rep. Ted Poe, R-Texas, said the White House was exploiting the Deepwater Horizon disaster “to further a far-left political agenda.”
Rep. Kevin Brady, R-Texas, said the administration was flip-flopping on energy policy. “It’s time for the White House to stop determining energy policy by holding a finger up to gauge the political winds,” Brady said. “We need more American-made energy from all sources produced by American energy workers. Why doesn’t the President get this?”
Karen Harbert, the president of the U.S. Chamber of Commerce’s Institute for 21st Century Energy, said the administration’s move is “a major step backward for the security of America’s energy future.”
Harbert said the White House was effectively choosing “to keep most of America’s abundant oil and natural gas resources under lock and key.” And, she said, “the administration is sending a message to America’s oil and gas industry: Take your capital, technology and jobs somewhere else.”
Bruce Vincent, the CEO of Houston-based Swift Energy Co., and chairman of the Independent Petroleum Association of America, called the announcement “misguided” and stressed that it comes on the heels of a slowdown in issuing offshore drilling permits and confusion about what operators must do to satisfy federal regulators and get drilling projects approved.
“More uncertainty, less access to American oil and natural gas, and even more bureaucratic red-tape is not a commonsense energy plan,” Vincent said. “It is, however, an attack on the American economy and our nation’s energy security.”
Randall Luthi, president of the National Ocean Industries Association, said he was especially disappointed that the administration was blocking new drilling in federal waters off the coast of Virginia, where one lease sale had already been planned before the oil spill. After all, he said, that planned leasing was supported by both U.S. senators from Virginia, the state’s governor and a majority of its congressional delegation.
“Energy exploration and production offshore Virginia alone . . . would create thousands of new, well-paying jobs and generate millions of dollars in revenue,” Luthi said.
Today’s decision is a mixed one for Shell Oil Co., which has been hoping to drill an exploratory well in the Beaufort Sea near Alaska next year and is still waiting on federal regulators to give their okay. Administration officials said they would be reviewing Shell’s application and promised to make a decision about the plan soon, but even an approval might not come in time for the company to move equipment to the region and start drilling next summer.
Marvin Odum, the CEO of Shell Oil Co., said the administration’s decision “signals an important direction for companies like Shell to eventually return offshore crews to work providing jobs, adding important revenues, and supporting the economy.” But, he added:
“While the decision to advance Shell’s application for a Beaufort Sea drilling permit is a positive one, it is important to address the outstanding issues regarding the timely approval of permits both in Alaska and the Gulf of Mexico. Shell has a proven record of superior offshore operations in both areas, and we will continue to work with the Administration as we move forward.”
In a statement, Chevron decried the move as a “step in the wrong direction” that would limit U.S. energy production, impede the creation of new jobs tied to offshore drilling and would mean less royalty revenue for the federal government.
Rep. Gene Green, D-Texas, said he continued to be concerned about a shallow-water permitting slowdown. While the permitting delays fall short of a “de facto moratorium” — the label critics have given it — Green said the slowdown is a major problem for the oil and gas industry and the people it employs along the Gulf Coast.
Green said federal regulators have a responsibility to give clarity to energy companies applying to drill new wells, so they know how to comply with new rules and can be certain “that if they jump through all these hoops they’ll actually get their permit.”
Although the government lifted its moratorium on deep-water drilling in October, it has not yet approved any wells that would have been blocked by the ban. The administration has signed off on 19 new shallow-water wells since it imposed new requirements in June, but that lags behind historic approval rates.
Read about the reaction of offshore drilling foes here.
You can also read highlights of the administration’s new offshore drilling plans here.
Obama, you really don’t care for another term. Well you won’t get it whether you want it or not.
Hooray for Obama! BP’s oil spill didn’t harm Florida’s beaches but just the fear of it whipped up by the White House, the media, and my fellow travellers sure killed the Florida tourism business this year!
I’m for whatever it takes to get taxpayers to spend their money on the “green energy” scams. I love Obama.
Folks, Obama is destroying the south and making the ENTIRE US pay for it. Look for high increases to the cost of fuel, food, shipping, and energy. Countries are drilling near Cuba and Mexico as I type.
“Countries are drilling near Cuba and Mexico as I type.”
No one is drilling near Cuba. But it’s a popular myth.
We’re already drilling in and near Mexico.
And remember, Bush refused to allow drilling in the eastern gulf coast as well.
Look if you allow it here in Texas, then it shoiuld be allowed anywhere,excepting of course any proven environmrntallt sensitive area. Case by case basis.
Great! ! ! The Chinese and Brazilians will be doing the drilling instead, off the same Florida coast, only difference the oil will be going to Cuba, China, and Brazil, and we will be getting the same spill potential. Sounds just real good to me! ! !
Davebo, I don’t know where you get your information, but REPSOL is going to be drilling exploration wells, and Statoil is said to be involved as well.
“Foreign firms have signed exploration and production agreements for 21 of the 59 blocks Cuba has created for its Gulf waters, where the biggest oil finds are believed to be located. An additional 23 blocks are said to be the subject of discussions with foreign companies.”
That is an excerpt from a US News story, unless you don’t think that they are reputable either…
This is just more of the “I hate America” by Obobble and his minions of destruction. They won’t be satisfyied unitl we live in the caves using
candles like his relatives. BP had a problem and it was capped. There
will be more scrutney than ever but that doesn’t stop the Left Wingdings
from still trying to destroy our Petroleum industry as fast as they can.
They know they only have a few days left before the lose total control
and it is killing them. This has been the party of Taxiation, Spend
and blatant lies to the American public since the Media made obobble into
a rock star. Unfortuantley for the American people he cann’t find the
answer on his Teleprompter. He hates the South and is doing all he can
to leave us and the nation in ruins before he is out of office.
I have been in the oil and gas business for many years. Oil Companies and Republicans will say anything to make a buck! Drilling off the east coast has not been permitted by ANY administration, so stop your whining. Every time this administration makes a decision that does not align with the oil companies profitability goals and the republicans goals to enable the oil companies to make as money as possible, they play the “jobs” card. Please. Oil companies have enjoyed record profits and have benefited from tax breaks for many years, yet it is never enough.
Scott,
That article was from 2009, and Cuba’s decision to allow drilling was made in 2007. Of course, that was before the oil spill, but as of now, no company is drilling off the Cuban coast.
The litany of racist hatred aside Mr. Maxwell (and select others), this is a well-thought out and CONSERVATIVE decision. I.e., to CONSERVE the sensitive coastlines and ecosystems we have left. I don’t see how holding off oil production on the coasts somehow is punishment to the American south just because many oil companies are headquartered here. It’s largely the south’s coastlines that are being protected! Anybody here ever heard of Deepwater Horizon? Well in those southern states of Louisiana, Alabama, Mississippi and Florida they’ve heard about it. We may need to expand drilling in the future, but I think we ought to seriously keep the brakes on it until and unless we can make systems and protocols a LOT safer than it has been. How about we focus on clean/green technology, which won’t endanger our fisheries, and conservation, rather than just charging into the next oil patch like rabid dogs?
Fine. Now lets cut off all oil supplies to Florida. They don’t need oil. They have the tourist and fishing industries.
Of course he dislikes the South, and the great state of Texas is at the middle of his dart board. So long as we continue to hum along without having to rely on the D.C. machine, he’ll forever hate us for our independence and self reliance.
Good!
Pretty poor journalism…quotes company and industry representatives on matters of public policy. Oil companies by law are only concerned about one thing, which is their bottom line.
The destruction of America’s productivity continues.
President BO is a traitor to the United States. At a time of high unemployment he forces more layoffs in the oil and gas industries because he is an idiot. He is the worst president ever. He promised jobs with his massive spending yet unemployment is near 10%. One in ten does not have a job.
Quote from CNN: Sen. Bill Nelson, D-Florida, said it is “good the president is listening to the people of Florida.”
Then those folks should arrange to get their energy elsewhere, like the Middle East. Good Luck.
Didn’t President Bush block drilling off Florida’s coast in the first place? Was he trying to hurt the South also?
Title of article: “Oil industry won’t get shot at Florida.”
More appropriate title: “Oil industry just got shot in Florida.”
Any “special Chinese requests” have anything to do with this Obummer? Any of you dunces against drilling there aware that the Chinese are drilling closer to the Florida coast (with Cuba’s permission) that would be instigated in a domestic drilling program?
Most people in those regions don’t want the unsightly view of offshore platforms in their waters and the polution risks. People in those regions make decisions based on what they value. Those regions choose to pay more for everything and they seem content with doing that.
I have friends in the oil industry; small business and large business. They said the moratorium NEVER EVER hurt their business. they are still blowing and going. NO layoffs. Fear mongers beware – the truth is lurking.
Aside from a few, you folks in Houston are racists.
Thanks StevieG, but I said “Will be drilling”, not currently drilling. Cuba needs resources and money and I have heard no news of cancellation of their drilling plans due to the Horizon incident. Some of the area’s discussed for drilling fall within 50 miles of the Florida coast.
Carol Herrington, I work in the oil industry, and I can assure you that some people HAVE been hurt by the moratorium. Well projects are lengthy contracts that take a long time to develop and implement, which is why some companies are not affected immediately, but they have long term consequences. Also, Oil and service companies are International, so foreign drilling and recovery is not being hampered by the Horizon spill thus leaving a portion of businesses still able to bring in money and have work. I can point you to many EX employees of Baker, Schlumberger and many other oil and service companies that would disagree with your statement about “not being hurt” and “no layoffs”.