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Obama Proposes Opening Huge Parts of U.S. Coasts to Oil Drilling
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March 31, 2010 5:08 p.m. EST
Topics: politics, regulatory policy and organization, natural resources, economy, business and finance, energy and resource, environmental issue, energy resources, oil and gas - downstream activities, United States
Tom Ramstack - AHN News Correspondent
Washington, D.C., United States (AHN) - President Obama Wednesday proposed opening huge portions of U.S. coastal areas to oil and natural gas drilling that have been off limits until now.
He described the drilling as another effort to rescue the U.S. economy from foreign oil dependence.
The plan calls for drilling along the Atlantic coast, the north coast of Alaska and the eastern Gulf of Mexico.
Atlantic coast drilling would be allowed from northern Delaware south to central Florida.
Drilling from New Jersey north through the coast of Maine still would be prohibited. It also would be forbidden along the Pacific coast from Mexico to Canada.
Environmentalists responded by saying any short-term economic benefits of more drilling were outweighed by harm to natural resources.
“Drilling our coasts will doing nothing to lower gas prices or create energy independence,” Michael Brune, the Sierra Club’s executive director, said in a statement. “It will only jeopardize beaches, marine life and coastal tourist economies, all so the oil industry can make a short-term profit.”
However, federal lawmakers close to the oil industry said Obama’s plan was encouraging for the economy.
Some Republicans liked the idea of more oil and gas drilling, but said Obama still would ban drilling on too much of the U.S. coastline.
Senate Republican Leader Mitch McConnell said Obama’s plan is “a step in the right direction, but a small one that leaves enormous amounts of American energy off limits.”
Other Republicans interpreted Obama’s proposal as an effort toward forging new bipartisan energy legislation.
Sen. Lindsey Graham (R-S.C.) said more “must be done to make this proposal meaningful and the game-changer we all want it to become.” He added that “we need a comprehensive energy strategy for our nation that breaks our addiction to foreign oil.”
Obama anticipated criticism from environmentalists during his speech at Andrews Air Force Base when he said, “There will be those who strongly disagree with this decision, including those who say we should not open any new areas to drilling. But what I want to emphasize is that this announcement is part of a broader strategy that will move us from an economy that runs on fossil fuels and foreign oil to one that relies more on homegrown fuels and clean energy. And the only way this transition will succeed is if it strengthens our economy in the short term and long term. To fail to recognize this reality would be a mistake.”
The Senate is expected to begin hearings on the drilling proposal within weeks.
Unlike Obama’s controversial health care legislation that appealed almost exclusively to Democrats, the oil and natural gas drilling proposal takes some ideas from a Republican plan considered by former President George W. Bush.
It would give the oil industry the drilling rights along the Outer Continental Shelf it has sought for decades. It also would open the Chukchi Sea and Beaufort Sea along the Arctic coast of Alaska to oil company exploration.
Environmentalists tied up the proposals in the courts for years. Even Obama said he opposed widening the area for coastal drilling when he first took office.
Economic hardships compelled him to change his mind.
“This issue is just too important to allow our progress to languish while we fight the same old battles over and over again,” Obama said Wednesday.
He acknowledged that more oil and natural gas drilling was not a choice he preferred.
“For the sake of the planet and our energy independence, we need to begin the transition to cleaner fuels now,” he said.
The United States consumes 20 percent of the world’s oil supply but holds only about 2 percent of the oil reserves.
How much oil and natural gas might be found in the areas proposed for new drilling has only been estimated.
The Interior Department relied upon 30-year-old seismic data to estimate as much as a three-year supply of oil and two-year supply of natural gas lies along the Atlantic Seaboard. Oil companies could purchase the drilling rights as soon as 2012 under the Obama plan.
The most plentiful supply is believed to lie under the eastern Gulf of Mexico, where the government estimates as much as 3.5 billion barrels of oil and 17 trillion cubic feet of gas could be recovered.
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