Jack Gerard
Jane Van Ryan
UPDATE (5/28/10): Read a more recent statement from API President and CEO Jack Gerard regarding President Obama's May 27 announcement delaying and cancelling some offshore development projects.
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President Obama announced an energy strategy today that includes expanding offshore drilling in certain areas along the Atlantic coast, in a portion of the eastern Gulf of Mexico, and off the coast of Alaska.
API President and CEO Jack Gerard responded by saying:
"The announcement by President Obama and Secretary Salazar is a positive development. We look forward to reviewing the details of the proposal, and we stand ready to work with them to make this a reality. We appreciate the administration's recognition of the importance of developing our nation's oil and natural gas resources to create jobs, generate revenues and fuel our nation's economy."
It's estimated that the Eastern Gulf of Mexico could hold 3.8 billion barrels of oil and 21.5 trillion cubic feet of natural gas. Opening the Atlantic coastline from northern Delaware to southern Florida could make available another 3.8 billion barrels of oil and 15.1 trillion cubic feet of natural gas, according to estimates. This area includes the proposed Lease Sale 220 which is 50 miles off Virginia's coast and has been scheduled for 2011.
The president's plan cancels future Alaska lease sales scheduled in the current Interior Department offshore leasing plan, except for Cook Inlet. The administration's next leasing plan is expected to include sales in the Chukchi and Beaufort Seas as well as the Cook Inlet.
The offshore areas that would be off-limits to development include the New England Outer Continental Shelf (OCS), the Pacific OCS, and a large portion of the Eastern Gulf of Mexico where the Destin Dome, a proven natural gas field, is located.
Jack Gerard said today:
"As we move forward, we hope that consideration can be given to other resource-rich regions, such as the Destin Dome area of the Eastern Gulf and areas off the Pacific Coast and Alaska. We also need to ensure that the permitting processes are handled in an expeditious way. The oil and natural gas industry has a proven track record of safe oil and natural gas development and the majority of the American people recognize this by supporting greater development for the benefit of their communities, their states and their nation."
We at CEA applaud President Obama for his serious focus on a comprehensive energy policy. As stated by the President in his speech, our nation needs to adopt a broader strategy for meeting our energy security. This strategy involves balancing the use of traditional sources of energy, expansion of alternative energy’s role, as well as continuous strives to improvements in energy efficiency. It is from these conditions that America can ease itself from foreign oil by relying on more domestic resources while strengthening our economy in term of jobs and revenues.
The administration’s intention to potentially unlock millions of energy-rich acres along the OCS suggests this president is well-aware of the tremendous benefits to our economy and our security that responsible exploration makes possible. These are benefits that must be realized not only in the near-term exploration of oil and natural gas offshore, but in the aggressive, long-term pursuit of efforts to convert the wind, the sun and the tides into stable and affordable sources of energy for the future.
Some elements of the plan released today indicated willingness by this administration to pursue the vast amounts of offshore resources that the United States possess. That being said, the cancellation of the already scheduled lease sales in Alaska, a state that holds the promise and potential to provide this country with so much more than policymakers in Washington permit it to, was a huge set back for today’s struggling economy . We’re also disappointed that in putting forth a new plan that doesn’t begin until 2012, further delays will be encountered in ensuring already scheduled lease sales between now and then are actually held.
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I'll be curious to see the actual details of this plan. While on the surface it sounds like a positive step, reading "The president's plan cancels future Alaska lease sales scheduled in the current Interior Department offshore leasing plan," has me raising an eybrow.
I agree that is good to see the President and his administration moving towards developing the offshore resources in the Atlantic but let's be careful of any hidden agenda...
Announcing that the coast is now open is great news for the political fans but will it happen anytime soon? As we all know and have seen in the past, there will probably be many delay tactics used by groups to prevent any serious efforts in the near future...
Imagine the list of lawsuits and challenges lined up already by the environmental groups?...
I hope I am wrong but it would be foolish to take anything from this administration at face value...