Drilling bill clears House, but unlikely to pass Senate

Posted to: Environment News Politics


House Speaker Nancy Pelosi, left, in Washington, D.C., Tuesday with Majority Whip James Clyburn, center, and House Majority Leader Steny Hoyer. (Susan Walsh | The Associated Press)



WASHINGTON

A sharply divided House of Representatives agreed Tuesday to open millions of acres off the nation’s coastlines to oil and natural gas production but set conditions that could to keep much of that seabed free from drilling.

If it becomes law – and Senate passage is considered unlikely – the bill drafted by Democratic leaders would end a 25-year moratorium on most offshore drilling.

A buffer zone extending 50 miles from the coast would remain off-limits, however. Virginia and other coastal states would control areas between 50 and 100 miles offshore, and federal authorities would issue leases for drilling between 100 and 200 miles out.

Virginia’s Republican-controlled General Assembly already has signaled its support for drilling. But Gov. Timothy M. Kaine, a Democrat, has endorsed only exploration and favors a 50-mile buffer.

Passage came on a 236-189 vote after a day of sometimes bitter debate. Because President Bush already has ended a separate, presidential moratorium on offshore leases, Democrats warned that unless Congress passes a new plan this year to regulate drilling, the administration could open areas as little as 3 miles offshore to energy production.

“We will not be forgiven if we fail to move an energy bill forward,” said Rep. Neil Abercrombie, D- Hawaii . He had helped lead a bipartisan group this summer in crafting a more drilling-friendly bill but ultimately urged passage of the Democratic proposal.

Because the House bill cuts Virginia and other states out of any share of royalties that companies would pay on oil and gas produced offshore, even drilling supporters doubt that their states will agree to drilling.

“Virginia gets zero… The effect of this legislation will be that none of these coastal states will allow drilling,” said Rep. Thelma Drake, a Norfolk Republican. The bill “is not only a hoax, it is cruel,” she said.

House Speaker Nancy Pelosi, D-Calif., said the legislation will “rearrange the financial relationship between the American people, their oil, and Big Oil.” The bill would end tax breaks enjoyed by major oil companies and spur development of alternative, renewable energy sources, she said.

Republicans dismissed the measure as a sham, drafted to give the majority party political cover from voter outrage over gasoline prices that topped $4 per gallon this summer. Close to 90 percent of the 18 billion barrels of oil thought to lie off the nation’s coasts is believed to be within the 50-mile buffer, they said.

Other Republicans complained that the bill would do nothing to promote the use of coal and nuclear energy, sources they said could be developed quickly. And the plan was drafted by the majority in secret and rammed through the House before most members even had a chance to read it, they contend .

“They don’t want to be bipartisan… Off the camera, they’re going to put their arms around us and say, 'Don’t worry about it, because this bill’s never going to become law,’ ” said Rep. Randy Forbes, a Chesapeake Republican.

While most of its provisions have been discussed informally for months, the 290-page bill was not filed until 9:45 p.m. Monday and was considered Tuesday under rules that blocked Republicans from proposing revisions.

Whatever its fate in the Senate, the bill’s passage in the House was at least a symbolic break between Democratic leaders and environmental activists with whom they’ve long been allied.

“The House energy bill falls short of what Americans really need to meet our energy challenges,” said Frances Beinecke, president of the Natural Resources Defense Council. “Big Oil is playing off the fears Americans faced with rising gas prices and is distorting the facts.”

Pro-drilling business groups also were unhappy. A statement from the Independent Petroleum Association complained that the bill would continue to keep drillers out of the eastern Gulf of Mexico, where “the potential to produce resources and deliver them… is the highest and the quickest.”

Though Tuesday’s debate focused on offshore drilling, Democrats said the bill represents a broad attack on energy shortages and energy prices. Its provisions include:

- A ban on the export of oil and gas extracted from fields in Alaska. While the bill maintains a ban on drilling in the Arctic National Wildlife Refuge in that state, it would permit leasing and drilling in the National Petroleum Reserve, elsewhere in Alaska.

- Release of 10 percent of the oil in the federal government’s strategic reserve, a move supporters say will push down retail gas prices.

- New tax credits for companies developing a variety of alternative energy sources, including wind and solar energy and biofuels.

- A requirement that utility companies generate at least 15 percent of their electricity from renewable energy sources by 2020.

- A requirement that major oil firms provide at least one “alternative fuel pump” at each company-owned service station by 2018.

Dale Eisman, (703) 913-9872, dale.eisman@pilotonline.com



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Well George K

I seem to remember Jimmy Cater saying we would be out of oil in 10 years. That was back in 1979. So if we've already run out how does my car get from point A to Point B?

While I agree that we need to go whole hog for alternatives (which we're starting to do just that) we need to make sure our infrastructure does not GRIND to a halt by refusing to look for and use what is already in our backyard.

The market is already doing what a good portion of people said they wouldn't, they're buying smaller cars, more fuel efficient vehicles, the market is buying less gas, so much so to this last point that the same government that begged us to break our addiction says now we have to pay higher taxes because we just did what they asked. We're buying less and the Fed/Localities are getting less in tax revenue. Now they want to punish us for conserving.

The sooner we drill our oil

the sooner we will be out of oil and have to depend on foreign sources. The US has only 6% of all the oil left. Without the exploration of alternatives the US will be crippled within twenty years.

Alaskan Oil

So the Demacrats on the Hill want all the oil in Alaska to stay here in the USA, but what are we going to do with it? There is not one refinary in the country set up to refine Alaskan oil. That shows what their priortys realy are. Getting reelected not helping the American people.

gertz

No it's not. It's an obvious result of higher costs to the energy companies. All politcal mudslinging or debate aside it is a cause and effect relationship. Read the bill.

For the record I am a stong supporter of energy source diversification. The private sector will have to handle this to make it succesful. The goverment should nurture, encourage, and get out ofthe way. I do not beleive pursuing more fossil fuels is a sustainable method for the future. Nor do I believe either party is commited to change that is needed, or capable if they were so inclined. The free market is the only thing that will do this in the US.

Actually Gertz

BO has stated that he wants Big Oil to pay each american a 1000.00 rebate. He has stated he plans on paying this through more taxes on Oil Companies. So do you really think that when their margin is only 8.5 cents for every dollar they will not pass the cost onto you and I?

If you believe this I want some of the medication that you're on. Because that will hit you in the pocket at the pump. It's the only way they will be able to maintain that slim profit margin...

laughable comments

"Next, if you're complaining about the current prices, just wait until an Energy Policy from the Dems makes it to fruition. We will be forced to use cost prohibitive alternative energy sources, big oil will be taxed to high heaven (which will trickle down to the pump), and we'll be at the mercy of foreign govts to drive our cars"

Sorry, but that's an assumption and not a fact.

Laughable Comments

It is pathetic that so many issues are being confused here. The current energy policy and high prices: "thank you Cheney". You've got to be kidding me if you think the current administration's policies are to blame. We can thank the decades of enviro-whackos who have limited domestic oil production, the falling dollar, and finally the unregulated commodities investors who artificially jack up the price of each barrell of crude. I also have to comment on the existing pollution in various areas of Hampton Roads and how none of which are even closely related to oil. Next, if you're complaining about the current prices, just wait until an Energy Policy from the Dems makes it to fruition. We will be forced to use cost prohibitive alternative energy sources, big oil will be taxed to high heaven (which will trickle down to the pump), and we'll be at the mercy of foreign govts to drive our cars. Finally, while all this is going on in Congress guess how many of our annual spending bills they have passed for FY2009? That's right a big fat NONE! So, we'll start the year in a CRA again! Thanks Washington!

Complain All You Want - The Time To Change Our Mindset Is Now

While the constraints in the bill are very appropriate and warranted, "energy conservation" in Republican ideology still seems based on switching all the light bulbs to red and prostituting the body politic. And I must say, based on what I've read here and have seen transpire in D.C., they seem to be a well oiled machine.

Oh, and yes, I have seen my gas bill and escalating gas prices (thank you Cheney energy policy), but this pandering-read: Drake, Forbes, et al, and wholesale capitulation to big oil will never help this country break free from their self imposed vices.

regardless of party

"When the Senate votes, we will have the chance to see if our Junior Senator has retained his famed independence or if he has become just another Democrat hack.

I'll be watching."

Me too. $20 bucks say's he skips it.

One thing I am glad this highlights is the fact that leases are already out there not being used. those of you who just want to just jump into drilling might want to note yesterday's paper. There are boats sinking in North landing River at Pungo with an "oily sheen." The goverment cannot even handle enforcing it's existing laws much less protect the coasts. Many of the psoters on here pointed to the gulf as a proof of clean drilling. Hopefully Ike changed your mind.

No new nuke plants? No new

No new nuke plants? No new refineries? No drilling where the actual oil is? Smoke and mirrors yet again.

Ever seen how much Pelosi has in alternative energy shares?

My mistake

I included the midwest government-owned acreage also. The NPR only consideres the 23 million acres of land on Alaska's North Slope which is divided into sections. Some sections are being tapped. It is estimated there is between 6 and 13 BILLION barrels of oil there. Efforts have been made to make the land leasable but efforts have been blocked by environmental groups. Regardless HB 6899 is an ignorant bill. Doing nothing will only destroy this economy further. The refinery comment leaves me scratching my head. Has your higher grocery bill caught your attention?

barneyc73913

Runoff and oil platforms are apples and oranges. More oil is introduced into the ocean from natural seepage than from all the oil platforms combined.

Stop with the "end of the world" knee-jerk garbage...

check it out

Check out the other artical in todays paper about mercury levels in fish from our rivers..we are having a profound effect on our environment now add oil to the equation and we will be importing our sea food think of thoses prices

The COST of any Oil Drilling accidents is too high

This Bill and any thing related to drilling for oil off our (east) coast should be TRASHED at the start..OPEN YOUR EYES PEOPLE I no most of you dont realize or even see what kind of impact we are having on the enviroment where we live now..LOOK at the Chesapeak Bay and all of its tributaries..Run off over the last TWO decades makes most water ways look like mud pits at low tide.I used to want to buy a house on some of the water ways around hear but now I would not even think of it I bet bugs are bad at low tides and the smells..Last year our beaches were unswimable at times after rains I dont even think I would go swiming at our beaches now because of the way the water looks..30 years ago I would ride my bike to any one of many lakes around hear and go swiming but not now..red alge..IF you ask me we could not afford any oil rig accident or bardge/ship spill of any size.I love shell fish hell any sea food call me and Im there..Once they drill off our coast the next step will be in our bay I hope Im gone when that happens I Love seafood dont kill it

No Oil In Current Leases - Prove It Redskin44

If there is no oil in the current leases, why does big oil continue to hold them? Hello! It's similar to their aversion of building more refineries. More refineries; more product, lower prices and profit. This is the same ideology with these current leases they're sitting on. If these current leases are dry, as you claim, the offshore leases they are pursuing now are not guaranteed to hold an abundant supply of oil either. So why the dogged pursuit? Again, money. And anyhow, any meager production results will not be seen until approximately 2030.

So keep drinking their Kool-Aid. They love it when the sheep fall in line and follow blindly.

All you Demacraps need to wake up !

Demacraps are screaming alternative fuels but are not telling you that, Bio diesel for example are more expensive at the pump than petroleum diesel. What good alternative fuels if they cost more?

SEND THE SHEISTERS HOME

It's time to clean house and send Nancy Pelosi and the rest of her worthless sheister friends home! This bill is a joke - a waste of time and taxpayer dollars. Who do these idiots think they are fooling?

Yo Gertz

I would rather my children and grandchildern be educated then rich. So they can see for themselves and not follow idiots left or right wingers like the persons that post here..

Wrong about leases

The leases are there but there is no oil. Hello. Wouldn't ya think they would have tapped it by now?

Smoke And Mirrors For The Republicans

This measure also requires oil companies to activate their current holdings and leases that are just sitting idle, rather than producing gas and oil. If they don't do this, they risk losing those leases already allotted to them. Why obtain more leases if you're not taking full advantage of the leases you currently have? It's nothing more than a windfall money issue for big oil. And more likely a money issue (campaign contributions - aka: legal bribes) for Thelma Drake and Randy Forbes. Now that's predictable.

So before you narrowly focus on this too little, too late drilling issue the Republicans so desperately (and incorrectly) espouse will cure our nation's energy ills, look at the big picture and the other things they aren't telling you. Smoke and mirrors; that's all it is.

Excellent litmus test

When the Senate votes, we will have the chance to see if our Junior Senator has retained his famed independence or if he has become just another Democrat hack.

I'll be watching.

Smoke and Mirrors

Call this bill what it is: a lame appearance to care about what this Country needs. The Democratic authors of this bill don't want drilling but want to look like they do. They are bowing to their left-wing financial backers by limiting potential oil development areas so stringently that it's not even feasible. Further, if revenues aren't shared with the States why would the States ever agree to allow it? Funny that the bill also specifically forbids drilling off the coast of Massachusetts. Didn't MA also object to wind? I say we cut MA off from oil/gas and let them find their own energy. Good old Dem hypocrites! We need to develop all types of energy sources: oil, natural gas, nuclear, clean coal, solar, and wind. As the alternative energy sources are improved and become more feasible the consumers will shift over, but until that time it is pure politics to restrict using what is available.

should not pass Senate

The costs does not justify the results. Republicans should relate to this since they seem to want to be the party of "not spending", but look at George Bush who has spent trillions with no way to pay for it. I hope you granchildren will be rich, because they will be paying for it.

All of the above

The Democrats talk about energy independence but places barriers in the way to achieve this goal. The only way we truly become energy independent as a nation is for a "ALL OF THE ABOVE" approach. When will our Government do the will of people?

Unbelievable

Objective article. Impressive. For all you Democrats: Do you understand that the price of gas effects every good and service in your life? The Democrats have no desire to solve our energy problems. Problems w/ the "extra provisions" of the bill: 1. The NPR is already available but lacks oil deposits, 2. There is a reason why it's called the Strategic Oil Reserve 3. Some tax credits are already available 4. Regulating the utility co. will just be passed to the consumer5.why outfit stations if alternative fuels will not be available? Can you imagine what VA could fix with the oil revenue? The highway system for starters! How can you take this bill seriously?

This bill is a lie designed to make the dems look good

The restrictions in the bill roughly equate to "no drilling". Now, there are your politicians at work for you. You want drilling, so they create a useless bill that makes it look like they are representing you. However, the bill is so restrictive as to be a lie. Is this what you are paying them for? Politicians. They are ALL the same. Party affiliation is just a ruse to keep you thinking there is a difference.

Ruse

This is just a democrat ruse. They know the bill won't pass if the states cannot get a share of the royalties (which they should). Once it fails, Pelosi will blame everyone else for its failure and wash her hands of the matter because she will get what she wants - no drilling.

Allow the states to get royalties and watch what happens to the drilling bill.

They Demanded It

Well, the Republican's demanded a Bill and here it is. If this was such a big deal (no I mean a really big deal), the GOP had 5+ years of owning the whole enchilada--Presidency, House, Senate and the Supreme Court--to enact the legislation they wanted, but they failed to act. So today, they get half a loaf. That's politics.

And it's all politics now. Oil closed at $91/bbl last night. That's 2005-7 levels. At that price, much of what they are discussing offshore isn't worth going after anyway, if you believe the oil companies word on this back during those years.

Case in point: in the Gulf of Mexico the "Jack" site is--so far--the deepest and most expensive dry hole in history, nearing 6 miles below the seabed and 1/2 billion dollars.

Truth is, it's all about control of oil not drilling oil. Oil under lease in the ground is worth more in stock prices and it's value as collateral to the oil company (it's counted as a cash reserve) than it is on the open market because they can borrow against it without having to spend any of their capital (the oil they are leasing).

Oil is not the multinational oil company's business anymore, it's just something to borrow aga

For the people

The democrats, you know the ones who that were going to “change” the course of congress for the good of America and 'the children". Well Nancy & Harry has done just that in 2 short years of their control – NOTHING!

Typical Democratic Response

Well it is business as usual with Pelosi and Reid at the helm in Washington, Say one thing then behind the scene do something else. The Democratic Party has no intent of doing anything to help ease this crisis because they are in the pocket of big environmentalist wackoism from the west coast. If they were serious about doing this then why did they sneak this in and bypass the normal procedure of bringing it through the committees as established policy says they should? This process allows All members time to read the entire bill before having to vote on it which is just what Queen Nancy doesn't want to happen, Half truths are not going to help so they need to stop playing with our lives and get this passed so it helps the American People and stops Playing games designed by environmentalist groups which would rather see this economy fail than to see us tap our own resources in this country.


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