MSNBC
WASHINGTON – President Barack Obama announced on Wednesday he will stick with a Bush-era plan to drill oil and natural gas off the coast of Virginia but will not pursue energy development in waters off the U.S. Northeast and the West Coast that were recently opened to drilling.
Obama, who wants Congress to move a stalled climate change bill, has sought to reach out to Republicans by signaling he is open to allowing offshore drilling, providing coastlines are protected. Allowing offshore drilling also would create jobs and reduce U.S. long-term dependence on foreign oil.
Joined by Interior Secretary Ken Salazar, Obama detailed an updated plan for offshore oil and natural gas development.
Speaking at Andrews air base outside Washington, Obama said, “This is not a decision that I’ve made lightly.” He addressed the expected outcry from disappointed environmentalists by saying he had studied the issue for more than a year and concluded it was the right call given the nation’s voracious thirst for energy and the need to produce jobs and keep American businesses competitive.
“We’re announcing the expansion of offshore oil and gas exploration but in ways that balance the need to harness domestic energy resources and the need to protect America’s natural resources,” Obama said, standing in front of a Navy F-18 fighter scheduled to fly on Earth Day with a half-biomass fuel mix.
The president said his decision is part of a broader strategy that also includes expanding the production of nuclear power and clean energy sources, to “move us from an economy that runs on fossil fuels and foreign oil to one that relies more on homegrown fuels and clean energy.”
“The only way this transition will succeed is if it strengthens our economy in the short term and the long run,” the president said. “To fail to recognize this reality would be a mistake.” For more than 20 years, drilling was banned in most offshore areas of the United States outside the Gulf of Mexico because of concerns that spills could harm the environment.
The administration has been weighing the pros and cons of offshore drilling since it took office and put the brakes on a Bush-era proposal that called for drilling along the U.S. East Coast and off the coast of California.
Obama made no secret of the fact that one factor in his decision was attracting Republican support for a sweeping climate change bill that has languished in Congress. “Drill, baby, drill” was a mantra of the GOP during the 2008 presidential campaign.
“While our politics has remained entrenched along worn divides, the ground has shifted beneath our feet,” the president said. “Around the world, countries are seeking an edge in the global marketplace by investing in new ways of producing and saving energy.”
But Obama also has long been up front about his support for expanding offshore drilling — as well as other energy sources less popular with die-hard environmentalists. In his State of the Union speech, he said he wanted the United States to build a new generation of nuclear power plans, invest in new coal technologies and make “tough decisions about opening new offshore areas for oil and gas development.”
An Interior Department official said the department will conduct the first new offshore oil and gas sale in the Atlantic Ocean in more than two decades as part of a lease sale 50 miles off the coast of Virginia.
Republicans criticized the plan, saying it keeps the biggest U.S. offshore energy resources from being developed.
“Opening up areas off the Virginia coast to offshore production is a positive step, but keeping the Pacific Coast and Alaska, as well as the most promising resources off the Gulf of Mexico, under lock and key makes no sense at a time when gasoline prices are rising and Americans are asking ‘Where are the jobs?’” said House of Representatives Republican Leader John Boehner.
The plan is to stick with the Bush administration’s goal to hold that Virginia lease sale in November 2011, but the official said that might be delayed by a few months at the most if required environmental reviews are not finished in time.
‘Makes no sense’
One environmental group condemned Obama’s plan.
“It makes no sense to threaten the east coast of America with spills and other drilling disasters when we’re about to unleash the real solutions to oil dependence — cleaner cars and cleaner fuels,” said Anna Aurilio of the group Environment America.
The proposed Virginia lease area may hold 130 million barrels of oil and 1.14 trillion cubic feet of natural gas, based on Interior Department estimates.
For the new 2012-2017 offshore drilling plan that will be developed by the Obama administration, the goal is to lease more areas in the mid-Atlantic and new areas in the south Atlantic and the eastern Gulf of Mexico off Florida, the Interior official said.
Drilling also would be allowed off Florida’s Gulf Coast, but not within 125 miles of the state’s shoreline, as current laws require.
Leasing in those new offshore areas is dependent on public approval and if it can be proven that drilling won’t harm the environment.
Seismic exploration in the south Atlantic and mid-Atlantic Outer Continental Shelf of the United States will determine the quantity and location of potential oil and gas resources to support energy planning.
Obama will not issue an executive order banning drilling off the West Coast or in U.S. Northeast waters, but those areas won’t be considered in the next five-year drilling plan, the official said.
That will still allow future presidents, if they chose, to develop energy resources in those offshore areas, the official said.
In addition, the Interior Department will continue lease sales in the Central and Western Gulf of Mexico, which have proved to have sizable reserves.
Alaska lease proposals canceled
Proposed oil and gas leasing in Alaska’s Bristol Bay will be canceled out of concern for protecting sensitive areas of the Outer Continental Shelf from environmental dangers.
This could affect companies like Royal Dutch Shell, which has expressed interest in the region, as well as ConocoPhillips, BP and Statoil.
Four pending lease sales in the Chukchi and Beaufort Seas in North Alaska will be canceled and those areas reserved for future scientific research to determine if they are suitable for further leasing. At the same time, a previously scheduled lease sale in Alaska’s Cook Inlet will proceed.
Congress allowed a prohibition on offshore drilling to expire in 2008 and former President George W. Bush lifted a drilling moratorium that year. Environmental groups and some lawmakers continue to raise concerns about the impact increased drilling would have on coastal areas.
The U.S. Geological Survey estimates the U.S. Atlantic coast waters may hold 37 trillion cubic feet of gas and nearly 4 billion barrels of oil, while the Pacific Coast has 10.5 billion barrels of oil and 18 trillion cubic feet of gas.
To put that in context, the United States imports about 2 billion barrels of oil a year from OPEC nations and is expected to import 2.7 trillion cubic feet of natural gas from all sources this year, according to the Energy Department.
Also announced is that the Environmental Protection Agency and Transportation Department will sign a joint final rule on Thursday establishing greenhouse gas emission standards and corporate average fuel economy (CAFE) standards for light-duty vehicles for model years 2012-2016.
Obama also announced that 5,603 new hybrid cars and trucks have been ordered to convert the federal fleet to one of greater fuel efficiency.