SENATE COMMITTEEE OKS GULF OIL DRILLING

Senate panel OKs expanded oil and gas leasing in eastern gulf
Ben Geman, June 9, 2009 (NY Times)

"The Senate Energy and Natural Resources Committee approved expanded oil and gas leasing… in the eastern Gulf of Mexico in a bipartisan vote that would upend a 2006 compromise with Florida senators that provided their state at least a 125-mile buffer in most areas until mid-2022.

"The committee voted 13-10 in favor of Sen. Byron Dorgan's (D-N.D.) plan to allow leasing as close as 45 miles from Florida's coast [as part of the committee's ongoing markup of a broad energy bill]. It also allows leasing in a gas-rich region called the Destin Dome off the Florida Panhandle that is even closer to shore…"

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"Florida Democratic Sen. Bill Nelson slammed the plan in a prepared statement, arguing it could hamper military training, while blaming prices at the pump on financial speculators…Nelson vowed to block the effort…

"Environmentalists [also] oppose Dorgan's effort…But American Petroleum Institute President Jack Gerard praised the action after the vote…After a long debate, the committee rejected, 10-13, an amendment by Sen. Mary Landrieu (D-La.) to provide [revenues to] states… federal deficit reduction and… to the Land and Water Conservation Fund."

They can drill all they want but they aren't going to change this trend. (click to enlarge)

"A 2006 gulf leasing law created a revenue-sharing program for Louisiana, Texas, Mississippi and Alabama. Landrieu's plan would have provided this share to Alaska and to states that might have offshore leasing in the future…[as a critical state incentive and compensation]… for the impact of infrastructure…[R]evenue-sharing opponents said the OCS is a national resource and…Chairman Jeff Bingaman (D-N.M.) said the Interior Department has estimated that total future federal losses from revenue sharing could be between $653 billion and $790 billion dollars…

"Several lawmakers said they will look to revisit the revenue-sharing issue to seek a compromise as the bill proceeds toward the Senate floor."