The Virginian-Pilot
©
RICHMOND
Legislation that would dedicate future royalties from possible offshore drilling for natural gas and oil more than 50 miles off Virginia's coast to a variety of state efforts was killed by a Senate panel today.
Del. Chris Saxman, R-Staunton, carried the bill, HB1633, which would have directed a portion of future drilling royalties to transportation, energy research and Chesapeake Bay cleanup programs, among others.
The long-running offshore drilling debate intensified last year as gas prices surged. Also last year, presidential and congressional moratoria that had prevented drilling were lifted. Around the same time, federal officials indicated that offshore activity could begin by 2011.
President Barack Obama's administration hasn't been as hawkish on offshore drilling as that of his predecessor.
Earlier this month, Obama said he wants a more comprehensive strategy for energy development before East Coast offshore drilling is approved.
Sen. Mary Margaret Whipple, D-Arlington, called Saxman's bill unnecessary at present.
"It doesn't affect Virginia's position on offshore drilling," she said, calling the future royalties that would be dedicated by Sawman's bill "mythical money."
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oil royalties from federal waters
Please listen.
The reason why you won't see royalties for the state from operations 50 miles offshore is quite simple.
It would require that those states who don't have an irrational fear of the fuel that powers America get a share of the same (up to 50 miles offshore) oil fields. Anything less would make for a state level tax revolt, I am sure. Texas, Louisiana, Mississippi, Alabama and some places in Alaska (and a few undeserving parts of California, alas) would receive riches beyond the dreams of avarice.
And the US government would go even further into debt, after BO tripled the (world record) deficit in his first month in office.
Good question
For some reason, and I do not know the specifics but I have my suspicions, but quite a bit of American oil (not all) is more expensive per barrel than foreign oil. Google West Texas Oil. We are the most regulated country on earth. Regulations are necessary but there are quite a few that are unnecessary (due to technology) and obsolete and continue to be a financial burden.
oil exploration
I am not sure the offshore exploration for oil is necessary until we exploit more of the known oil reserves in the continental US. It seems cheaper to build pipelines to bring oil to the market from places like the Bakken fields in the Williston basin. Google Williston basin or Bakken oil fields and you may be surprised at the estimates of the quantity of sweet light crude in the US. It is also surprising none of the Politicos or Oil companies ever speak in public about this. I guess the Oil would be cheap enough to cut profits for the oil companies so it will remain in the ground.
Unbelievable
An elected representative has the guts to try to do SOMETHING to help with our transportation issues and another elected official (Democrat, imagine that) calls it mythical. Unbelievable. And on top of that, there was money allocated for cleaning up the bay. It's obvious that Obama and the Democrats will continue to do NOTHING while the U.S. remains at the mercy of foreign oil. We can explore (and possibly harvest) our own AND continue to research and develop alternative sources AT THE SAME TIME!