If Congress Lifts the Offshore Oil Drilling Moratorium, What Happens Next?

The issue then moves to individual states. And there is no guarantee that more oil would flow

August 15, 2008 RSS Feed Print
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If Congress bows to pressure from Republicans and decides to lift its restrictions on offshore oil drilling, it is unclear exactly what would happen next. Such a move would take the country into uncharted waters, and there is no guarantee that a substantial amount of new drilling would take place at all.

The frequent "drill here, drill now" refrain of Sen. John McCain and his fellow proponents of offshore drilling that has become part of this year's presidential debate suggests that removing the congressional moratorium would throw open the nation's waters to a spree of new drilling—and, eventually, new oil.

But there are major obstacles that are rarely addressed. New drilling, if it does happen, won't take place willy-nilly. The most likely scenario, if Congress were to relax restrictions on drilling in federal waters, is that individual states would get the authority to approve or reject new drilling.

Yet even that issue is, technically, undecided. "There's no historical precedent here for this sort of action," says Eileen Angelico of the Minerals Management Service, the Interior Department office that handles offshore drilling in federal waters. "It all depends on what Congress decides to do."

One hint may come from a recent proposal by the so-called "Gang of 10," a bipartisan group of senators led by Democrat Kent Conrad of North Dakota and Republican Saxby Chambliss of Georgia. Earlier this month, just before Congress took its August recess, the group announced a compromise energy plan to open up the eastern Gulf of Mexico and give four states—Virginia, North Carolina, South Carolina, and Georgia—the right to "opt in" to new leasing. Chambliss said that it would be up to the state legislatures to approve new drilling under the proposal.

It's unclear at this point if state legislatures will grant such approval, or how eager they will be to take up the discussion. Historically, coastal states have resisted new offshore drilling, in state waters, which usually extend about three nautical miles out to sea, as well as in federal waters, which lie farther out from the shore. (Texas and Louisiana, among others, are notable exceptions.)

Concerns about the impact of oil spills on tourism and coastal industries loom large, as does disdain for the "visual pollution" of oil rigs looming off the coast. Florida, in fact, recently wrapped up an effort to buy back oil leases in state waters, many of which had been in granted to oil companies in the 1940s and had long become idle.

Critics also point to a Department of Energy report from 2007, which found that new drilling won't have a significant impact on oil production before 2030, and determined that the ultimate impact on prices would be "insignificant" because oil is a globally traded commodity.

Still, voter pressure could sway the debate. According to recent polls, between 55 and 60 percent of Floridians say they support new drilling off their coasts. In California, a slim majority—51 percent—now favor the idea. That number is up by about 10 points from a year ago.

Some of these polls may be a bit misleading. A widely cited Rasmussen poll in June asked voters if they would support drilling "to reduce the price of gas," a connection that most experts say is dubious at best. But the polls nonetheless capture an attitude shift among coastal residents that politicians of both parties have been keen to acknowledge.

At the state level, the battle will come down to who runs the legislature. Democrats control both the House and Senate in California, North Carolina, Oregon, and Washington, according to the National Conference of State Legislatures. Republicans, meanwhile, hold both chambers in Florida, Georgia, and South Carolina. Virginia is split. Because these bodies would likely be tasked with approving new drilling, such proposals could languish in Democratic-dominated states, or at least face sizable opposition.

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When oil supply is discussed in terms of National Security, the situation with the gas lines in the 1970's comes to mind. OPEC cut off all oil to the US and we were required to rely on domestic production, non-OPEC members and what the Shah of Iran secretly allowed us to trans-load at sea. Everytime the subject of new drilling is broached the standard response is that we won't have production for 7-10 years. That was the reason cited 7-10 years ago and in 7-10 years we will be saying the same thing, so why not learn from this and begin planning and implementing a schedule of events for the time when the middle east imposes its will on the west once again? Drilling in Alaska should stipulate that any oil recovered in US territory be marked for domestic use or to replensh US oil reserves rather than become part of the "world oil portfolio" that would send it to India and China for the short term enrichment of the oil companies. The reason the Governor of SC is opposed to off shore drilling is that he trying his best to position himself for National Politics. He is oblivious to the looming energy crisis from a National Security perspective.

Pinckney - Charleston of SC 7:45AM January 21, 2009

I believe we should find out how much oil is off the coast of the U.S. This alone will stop a lot of the specultion.The other reason is why should we keeping spending billons of dollars overseas with countries who do not like us until something happens.This will give us more time to develope more alternate forms of engery which we need to lesson our dependence on oil.

of 3:51PM January 19, 2009

All of the oil refineries on the West Coast are operating at maximum capacity and there are no plans to build any more. There are no crude oil pipelines crossing the mountains that could delivery any increased production to where we have additional refining capacity - primarily on the gulf coast. The crude oil tankers are to large to pass through the Panama Canal. They cannot go around the tip of South America because of the danger from the weather and ice. There are no crude oil pipelines planned to bring the oil down through Canada and the oil would all be produced long before any such pipeline could be built. It would not make sense to ship oil from Alaska all the way around the world to off load it at our ports on the Gulf Coast.

In short any additional oil produced in Alaska would be shipped to markets in China and Japan. This would enrich the oil companies and would continue to provide the oil checks to the citizens of Alaska but not one drop of the oil would show up in the US.

Ken. Rein of KS 2:03PM September 06, 2008

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