'First step' for Va. oil drilling to be announced Tuesday

Posted to: Business Virginia

RICHMOND

Virginia is moving forward on potentially allowing commercial oil and natural gas operations off its coast, just months after long-standing federal restrictions on offshore energy production activities were removed.

Randall Luthi, director of the federal Minerals Management Service, is to hold a conference call today announcing "a significant first step in the multi-step leasing process for offshore Virginia," according to a statement from the agency.

The process will include "full public involvement and begin the work for an environmental analysis," the statement said.

Potential drilling off Virginia's coast comes at a politically turbulent time in an energy debate shaped by a faltering national economy, environmental concerns and high gas prices that have spurred chants of "Drill, baby, drill!"

Amid those pressures, quarter-century-old impediments to offshore energy production were lifted this year.

The first was removed over the summer when President Bush withdrew a moratorium blocking leases for oil and gas exploration in marine sanctuaries.

His action was followed in the fall by the failure of Congress to renew its annual moratorium.

How the process progresses will be influenced by President-elect Obama, who has publicly indicated that offshore drilling should be part of a larger energy plan that includes renewable sources.

Also still to be determined by federal lawmakers is how potential offshore energy royalties would be shared with states.

In Virginia, reaction to word that offshore drilling seems to be inching forward was mixed.

"Great," said state Sen. Frank Wagner, a Virginia Beach Republican who has been one of the General Assembly's leading proponents of offshore energy exploration.

It was Wagner's 2006 energy bill that made it Virginia policy to support federal natural gas exploration efforts at least 50 miles off the state coastline.

Wagner predicts that offshore drilling will create scores of "future energy development economy" jobs in Hampton Roads.

Less convinced is Eileen Levandoski, the Sierra Club's Hampton Roads organizer.

At a time when states including Delaware and New Jersey have recently approved wind turbine farms to generate energy, she said, "what does Virginia get...? Offshore drilling."

"It's really sad, when we should be investing in these alternatives," Levandoski added.

The prospect of offshore drilling has not received a warm reception from Navy officials, who as recently as 2006 informed the Minerals Management Service of their opposition because it would interfere with weapons tests and training.

However, drilling proponents hold out hope that an accord can be reached with military officials allowing exploration to proceed.

 

Pilot writer Dale Eisman contributed to this report.

Julian Walker, (804) 697-1564, julian.walker@pilotonline.com

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We can do it ALL!

The jobs created and the revenues captured could help fund the building and maintenance of roads in the Commonwealth. The technology and construction is much safer to the environment than it was even ten years ago. The Gulf Coast has been slammed recently by several hurricanes. I do not remember seeing any reports on oil spills or other environmental disasters caused by oil platforms or wells. At the same time, explore and develop alternative sources! It can be done! We have to stop being handcuffed by special-interest groups in the pockets of politicians!

Drill now, then wind, then solar, etc.

Mayor elect Sessoms ran a campaign of bring new industry to Virginia Beach. Well how about the oil and gas industry??

Salaries for offshore oil rig personnel

- Roustabouts start at approximately US $300 to $340 per day.

- Roughnecks (drill deck workers) can earn up to $375 per day.

- As an annual salary that would be approximately $50,000 per year.

- As a driller you are likely to make $450 per day or $81,000 per annum approximately.

- Other offshore oil rig personnel including tool pushers and drill leader positions, chief and supervisor positions are likely to make $75,000 - $100,000 per year

- Entry level positions are likely to make $42,000 - $48,000 per year.

- Trades, technical, professional workers are likely to make $70,000-$160,000 per year.

Just think of the taxes on those wages. Plus they will be spending that money here buying homes, cars, food, etc.

This should get the tree huggers excited !!!

foreign oil

It is past time America does "all the above" with regards to energy. Drill here drill now, while working on other energy resources such as; nuclear, wind, geothermal, and solar. Get off of foreign oil.

Absolutly Correct

It's about time law makers addressed the growing demand for energy. Oil and natural gas are just off our coast. We should all be getting checks just like the residents of Alaska or at the very least reduced taxes. Virginia, we should be using the natural resources we have until alternatives can compete cost effectively. At this point they cannot.

The Sierra Club is a small group of fruit cakes but they are well funded with a world wide network of support. Don't let them intimidate our law makers who will bend to their will.

VBP

Navy and Drilling

Even though I'm retired Navy, the Navy's WELL aware of the vastness of the ocean for their weapons testing. I think under the circumstances and our massive dependence on foreign oil, the Navy can go further out to sea when performing their weapons tests. It's a HUGE ocean and everyone can have their respective playgrounds.

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