News & Observer | newsobserver.com | Bush approves offshore oil rigs

Published: Jul 15, 2008 12:30 AM
Modified: Jul 15, 2008 04:57 AM

Bush approves offshore oil rigs

Prods Congress to lift its own ban

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What happens next?

* A congressional moratorium on oil drilling in the Outer Continental Shelf remains in place until 2012 unless Congress acts to lift it.

* Congress is considering various bills to tackle energy prices in the few weeks remaining before August recess.

* Republicans are trying to push offshore drilling, buoyed by polls showing that Americans support searching for oil offshore. Senate Republicans have a plan that would allow states to decide whether to drill at least 50 miles off the coastline. States would share in the revenues earned from oil leases.

* Democrats want oil companies to use the leases they already own on 64 million acres of public lands and waters. Oil companies counter that it is expensive and time-consuming to explore in those areas.

* Even if the OCS is opened to drilling, oil companies must get leases from the federal government, then go through permitting processes to explore for oil in deep sea. Experts say it would take eight to 10 years before oil would start flowing.

* Democrats are also trying to tackle what many are calling excessive speculation on oil commodities futures markets.

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WASHINGTON - President Bush lifted his restrictions on offshore oil drilling Monday, but don't expect to see rigs sprouting off Cape Hatteras anytime soon.

Congress still has a ban in place -- and it's uncertain at best whether the Democratic leadership would be willing to go along with Bush's plans for oil production.

At issue for North Carolina are 300 miles of some of the nation's most undeveloped coastline. Waters off the state's coast contain significant fishing and birding habitats, while the coastal tourism economy is among the state's most important.

But North Carolinians are paying more than $4 a gallon for gasoline, and most tell pollsters they support offshore drilling.

The U.S. Department of the Interior estimates that 19 billion barrels could be found in parts of the coast currently off-limits to drilling. If all 19 billion barrels were available, which is unlikely, the United States would have another 920 days, or 2.5 years, of supplies at current consumption rates.

"The only thing standing between the American people and these vast oil resources is action from the U.S. Congress," Bush said. "Today, I've taken every step within my power to allow offshore exploration" of the Outer Continental Shelf.

Such exploration and drilling would have almost no effect on current gas prices, though. Experts point that it would take at least eight to 10 years to produce oil offshore once all the bans are lifted.

Bush's action is the latest salvo in an election year that has seen Democrats and Republicans diverge sharply in recent weeks on offshore drilling. Republicans -- including presidential candidate John McCain and U.S. Sen. Elizabeth Dole -- have pushed to search for oil in the Outer Continental Shelf. Democrats such as presidential candidate Barack Obama and U.S. Senate challenger Kay Hagan oppose drilling offshore.

On Capitol Hill, Democratic "Use It or Lose It" legislation that would have ordered oil companies to drill on the leases they already have failed late last month. And new Republican legislation opening the Outer Continental Shelf on a state-by-state basis includes provisions that reprise a similar bill that failed two years ago. The new legislation is co-sponsored by Dole and Sen. Richard Burr.

Splintering consensus

Historically, the offshore drilling ban has been popular on both sides of the aisle. Bush's father put the first executive ban in place in 1990. A congressional moratorium, first passed in 1981, remains until 2012.

The prohibitions had long seemed solid because of opposition from Democrats, environmental groups and coastal politicians -- all of whom have said the environmental risks weren't worth the oil that could be gained.

With gas prices at record levels and polls showing most Americans favor looking for oil along the coastline, there could be increasing political pressure for Congress to act.

U.S. Rep. Walter Jones, a Farmville Republican, said states' governors and legislatures should make the call on offshore drilling. He has been hearing from constituents who are agitated over gas prices.

"At this point, I know that we've got a critical need in this country, and I believe it's going to get more expensive," Jones said.

Among the politicians who have changed their minds in recent weeks about drilling offshore are Dole, who faces re-election this year, and Sens. Lindsey Graham of South Carolina and Mel Martinez of Florida, all Republicans.

Not expecting much

Those interested in the issue in North Carolina say they doubt much will change this year.

Jake Parker, lobbyist for the N.C. Farm Bureau, said Bush's action is just another hurdle to clear to help farmers struggling with high diesel and fertilizer prices.

"The president lifting this is going to provide a little more incentive to Congress to talk about it and hopefully do something," Parker said. "Given the political environment in the election year, I'm not sure they're going to do that. But it's a step in the right direction."

North Carolina Sierra Club director Molly Diggins criticized Bush's statement Monday, but didn't sound especially worried.

"It is probably the single biggest step backwards the president could take," Diggins said. Still, she added, "I do not see Congress rushing into anything on this. The stakes are too high."

Congress has just a few weeks before its members head home for August recess, giving little time for action.

bbarrett@mcclatchydc.com or (202) 383-0012
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