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Wednesday, July 19, 2006
Terry Jeffrey :: Townhall.com Columnist
Drill our own
by Terry Jeffrey
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Was the Copenhagen Global Warming Summit Walk-Out a Win for the U.S.?


Neil Abercrcombie, the Hawaii Democrat and former college professor who represents Waikiki Beach and its environs in the U.S. House of Representatives, took to the floor June 29 to liken some Americans to the Taliban.

The targets of Abercrombie's ire were not officials at the National Security Agency conducting warrantless wiretaps of suspected terrorists. Nor were they the military personnel running the prison camp at Guantanamo Bay.

No, Abercrombie, who advocates expanded offshore oil and gas drilling because he believes rising energy prices are killing American jobs in agriculture and manufacturing, directed his anger at anti-drillling environmentalists.

"We are losing our manufacturing base," said Abercrombie. "We are losing our ability to farm, while rich, elite people in this country that support some of these environmental Taliban organizations are out there with the propaganda that is trying to say that some of us that are trying to get to energy independence are the ones that are causing the difficulty.

"Well, let me tell you something," he said. "We are not going to back off on this."

With a tight international oil market and escalating turmoil in the Middle East driving the price of crude toward $80 a barrel -- and with gasoline prices in the United States surging past $3 per gallon -- many Americans will be surprised to learn that current federal law prohibits tapping into massive pools of oil that now sit idly off our shores.

In 1990, the senior President Bush issued an executive order imposing a 10-year ban on new offshore oil and gas drilling leases. In 1998, President Clinton extended that ban until 2012. Language has also been inserted into each year's Interior Department appropriation enforcing the moratorium.

The moratorium has been maintained with broad support from members of Congress who represent certain coastal states, especially Florida and California, where environmentalists adamantly oppose new offshore drilling.

But the moratorium puts an astounding amount of domestic oil off limits to development -- thus artificially inflating the cost of gasoline for American families, while keeping the country more dependent on foreign oil than necessary.

In the energy bill approved last year, Congress mandated that the Interior Department's Mineral Management Service conduct an inventory of oil resources on the Outer Continental Shelf, an area extending 200 miles from our coastline over which the United States has exclusive economic rights.

In February, MMS estimated that the OCS harbors 85.8 billion barrels of undiscovered crude. Given that we imported 3.67 billion barrels of crude in 2005, according to the Energy Information Administration, that means the undiscovered offshore oil equals about 23 years' worth of imported crude at current consumption levels.

In June, the House voted 232-187, to approve a bill engineered by Resources Chairman Richard Pombo, R.-Calif., and co-sponsored by Abercrombie that would open the spigots on at least some of this oil. Forty Democrats supported it.

Under current law, state governments control the first three miles off shore and the federal government controls from three to 200 miles. When the federal government issues an oil lease for territory more than three miles from shore, it collects a royalty on the oil produced from the lease, but gives no share to the state.

Pombo and Abercrombie's Deep Ocean Energy Resources Act would change this. It would ban all new oil and gas drilling leases out to 50 miles, unless a state specifically passed a law to allow them. It would allow new leases between 50 and 100 miles, unless a state specifically passed a law to forbid them. And it would allow new leases beyond 100 miles, and give sole authority over that remote region to the federal government.

States would get 63.75 percent of the royalties from wells inside 12 miles, and 42.5 percent from wells outside 12 miles.

Voters in some states might support drilling for oil off their shores because they think it's a good way to create jobs, ease dependence on foreign oil and keep gas prices down. Others might support it for the royalty money.

In states where environmentalists hold the balance of power, they can permanently ban drilling within 100 miles of shore.

But environmentalists in places like California, Florida, New York and Massachusetts would no longer be able to tell Americans in places such as Virginia, Georgia and Alaska that they could not drill oil off their shores and sell it in places such as Indiana and Tennessee -- and thus compete on an equal basis with the royal families of Saudi Arabia and the United Arab Emirates.

President Bush and Republican Senate leaders should join with Abercrombie and Pombo to make this bill law -- before the next Middle East crisis makes gasoline $4 per gallon.

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About The Author

Terence P. Jeffrey is the editor-in-chief of CNSNews

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©Creators Syndicate
This is a good start...
It will take some time to develop production once the law is actually passed (assuming it is). Then there will still be a refining bottleneck. If there is nowhere in the USA to refine it, the produced gas will simply be sold elsewhere. The added supply will certainly reduce the crude price and that component of the gasoline price, but there is still the small matter of turning crude to gasoline. Refineries don't get built overnight, either. Damn those extremist environmentalists who abhor free-market solutions and private property rights!

Offshore Oil
I have long believed that any prohibition of drilling in either ANWAR or offshore is both stupid and self defeating. Modern techniques have made most arguments against drilling moot.

Fact: There are frequent oil spils off Santa Barbara, California caused, not by drilling but, by tectonic activity releasing oil pockets. Santa Barbara seems to handle these natural oil spills on their beaches quite well.

Fact: The biggest offshore drilling rigs soar some 273 feet off the surface. This means that a rig operating just 20-miles offshore could not be seen by Rush Limbaugh as he strolls along his Palm Beach beachfront. At 20-miles the rig would be well below the horizon.

Fact: These huge drilling rigs do not stay on site but move on to drill in another location replaced by a smaller pumping rig even less visible at any normal distance from shore. At half a billion dollars cost per drilling rig they must be in constant use. As a side benefit the pumping rigs act as artificial reef structures attracting all kinds of game fish.

As long as wild eyed "Conservationists" tie the country up preventing any attempt to prove out suspected oil reserves, we will be held hostage to oil producers whom are not friendly to us. They want our money but not our friendship and we will continue to see oil prices rise out of sight.

Finally: If we begin to prove out our domestic oil supply we would never need to pump a drop of oil out of our reserves because just the ability to do so would seriously affect the world price of oil downward. The Arabs, Russians, Venezuelans, Mexicans, and all other suppliers desperately need us as customers because without the petro-dollars we supply they would be reduced to their condition of savage roving tribes preying on each other as they were prior to the 1920's.

Right
This whole oil-ban thing is a bunch of BS promulgated by the enviro-crazies. The only people who really care probably all live with 10 miles of the beach. Unfortunately, here in Kalifornia, that's a huge % of the population, as that's where the major population centers are. I live about 30 miles inland; as far as I'm concerned, they can drill to their hearts' content.

The problem with the bill as outlined in the column is the 100 mile line, with states still having a say. I can understand it out to MAYBE 20 miles, beyond the visible horizon. But 100?

Nothing but talk
8 years ago when Bill Clinton vetoed drilling in Anwar and the congress did not overvote his veto, I contacted Carl Levin of Michigan about not voting to overide the veto. At that time, he explained in a form letter that we needed to "explore alternative resourceses" and "we wouldn't get any oil out of ANWAR for 10 years anyway." 8 years later, we would be really close to pulling large amounts of oil out of there.


These do nothings in Congress, like Levin, are only in this for themselves and don't care that I pay $3.00 per gallon.

Get rid of them.

Tyler

Animalgirl! Welcome back.
There's merit in what you wrote.

However, though the refineries have been blocked due to the machinations you describe... well, I don't know about you, but when I make a boo-boo, I try to correct it.

As to demand-side approaches: that's already happening - have you noticed the price of gas?

I CERTAINLY hope you're not suggesting I give up my 260 hp, air conditioned, 4 wheel drive, gas guzzling SUV.

You may as well ask me to give up my gun collection.

From my cold, dead hands .... or garage.

two words
Amen, brothers.

Y'all are preaching to the choir.

screeb

Animalgirl
I don't know if you'll see this, as it's now yesterday's column, but you'll probably be surprised to know that I agree with what you wrote. There is a lot of innefficiency that can be improved upon, and as enginnering advances (and I am an engineer), those issues will be addressed with progressively better technological applications.

BTW, I never wrote I was worried about oil shortages. Actually, I'm not at all. There are huge untapped fields extant.

Myopia
It is amazing how myopic we, as a country are. We see only what effects us today. The Chinese, for example, view actions taken today in light of consequences on future GENERATIONS. In about 50 years, the world's supply of readily available crude oil will be beginning to run out. The last countries with available oil reserves will hold a very powerful place in the geo-political and geo-ecomonic world. If you need proof, consider that Iran and the presently oil-rich countries surrounding it were populated by sword-wielding, camel dependent tribes less than 100 years ago. Now, by virtue of their oil, they wield power and have become nationalistic enough to think in imperialistic terms. ( Yes, that's imperialistic- if you invade your neighbors with clerics, you are theocratic. If you use troops, weapons, or terrist groups USING your weapons, you are imperialistic.)
In the future, and not the distant future, those left completely dependent on foreign sources of energy will also be completely vulnerable. Putin's use of Gazprom on democratic-minded former Soviet vassal states proves that.
I think, stated or not, somewhere in the Department of Energy there is a person or two smart enough to arrive at this conclusion, and in my opinion, it's better to suffer a little now, rather than a lot later.

why drill when we can dig?
and not send another dime to the folks seeking every opportunity to murder us? We have at hand the means to supply every bit of our POL needs for the next century without converting a single vehicle, never have another bulk crude carrier arrive on our shore, or risk any leaks from off shore rigs, at the same time keeping billions of "petro-dollars" out of the hands of the middle eastern fanatics looking to slit our throats, why not use it?
Of course I refer to the enormous supplies of oil shale in the western united states, which could supply a full century of Americas needs by the most conservative estimates. Digging it up though may upset a few feral horses and burros, so that is verbotten! The truly insidious nature of the "enviro nuts" was never been made so clear as this year, when it was announced that a means had been developed to "heat" the shale in the ground, and then pump up the petro. through more conventional means. within weeks of this announcment the tree huggers start screaming of "danger to the ground water".
Wake up folks, the enviro nuts dont want clean energy ( geo thermal being fought in the courts of cali, wind farms ditto, as I write this post, no nuclear plants for the past 30 years, ditto on refineries, no dams for hydro ( snail darter, anyone?) no tidal fall generators, NOTHING) they want no ENERGY use by humans.
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