Citing motorists' angst about high gasoline prices, the House of Representatives on Wednesday advanced two bills that would accelerate offshore oil and natural gas drilling.
Legislation that would give federal regulators a 60-day deadline to approve or reject specific offshore drilling proposals passed 263-163. A separate bill to force the government to sell drilling leases in waters off California and much of the Atlantic Coast is expected to pass this morning.
With strong opposition from the Obama administration and most congressional Democrats, neither measure is expected to advance in the Senate.
But House Republican leaders pushed the legislation as part of an ongoing political fight over who is to blame for high gasoline prices -- and what party is doing something to tamp them down. A similar battle is ongoing in the Senate, where Democrats have proposed legislation to ax $21 billion in tax deductions and credits used by the five biggest oil companies.
Executives from those companies are set to argue for keeping those tax breaks -- and defend themselves against accusations they are making outsize profits -- during a Senate Finance Committee hearing today.
Backers of the House drilling bills said the legislation would eventually lower oil prices by ensuring more crude is tapped domestically.
Opponents said any benefits in increased supply could be a decade away, since it could take years for companies to buy new drilling leases, launch exploratory drilling and eventually produce oil from any discoveries.
The bill passed by the House on Wednesday would give the federal Bureau of Ocean Energy Management, Regulation and Enforcement a maximum of 60 days to approve or reject applications for offshore drilling permits. If a decision weren't made during that period, those permits would automatically be deemed approved.
Oil industry leaders and their congressional allies have complained that the ocean energy bureau has moved too slowly in considering specific drilling plans.
The agency has permitted 52 new shallow-water wells since imposing new safety mandates last June, and it has approved 13 deep-water wells since a moratorium on that exploration was lifted last October.
The second drilling bill debated Wednesday would require the government to plan offshore drilling lease sales in areas where it is believed there are more than 2.5 billion barrels of oil or more than 7.5 trillion cubic feet of natural gas.
Possible veto
Although it stopped short of threatening to veto the legislation, the Obama administration said the bill would effectively mandate offshore drilling lease sales "along the entire East Coast, offshore California and elsewhere, without providing states and local citizens the opportunity to share views about where exploration should happen."
The ocean energy bureau is developing its plan for lease sales on the outer continental shelf from 2012 through 2017, but the administration has already said that drilling blueprint will not include oil and gas development on the East and West coasts.
Only suntan oil?
Rep. Ed Markey, D-Mass., underscored the White House argument that the legislation would force states that oppose offshore drilling to accept it near their coasts. In California, he said, "the only oil the people on those beaches want is suntan oil."
At times Wednesday, the congressional debate veered into clashes between big oil- and gas-producing states -- and those that are net consumers.
Sen. Mary Landrieu, D-La., angrily accused Florida, New York, Ohio, Michigan and other states of producing little energy while sucking up oil and natural gas extracted outside their borders.
"There are a lot of states ... that don't produce, don't conserve, aren't efficient and all they want to do is yell about high gas prices," Landrieu said. "Why don't you do something about it?"
Landrieu singled out Florida, a net energy importer that uses natural gas piped in from other states "so they can light up their state."
Rep. Jay Inslee, D-Wash., said his state stood ready to provide more energy, in the form of renewable power. But he said Congress is not doing enough to encourage the development of alternative clean-energy technology.
Democrats' efforts
Republicans turned back a variety of Democratic amendments, including one that would have blocked companies from getting new leases unless they renegotiate any they own that waive royalty payments to the federal government. Another blocked Democratic proposal would have forced federal regulators to consult with an independent drilling safety organization as part of their drilling permit reviews.
Legislation that would give federal regulators a 60-day deadline to approve or reject specific offshore drilling proposals passed 263-163. A separate bill to force the government to sell drilling leases in waters off California and much of the Atlantic Coast is expected to pass this morning.
With strong opposition from the Obama administration and most congressional Democrats, neither measure is expected to advance in the Senate.
But House Republican leaders pushed the legislation as part of an ongoing political fight over who is to blame for high gasoline prices -- and what party is doing something to tamp them down. A similar battle is ongoing in the Senate, where Democrats have proposed legislation to ax $21 billion in tax deductions and credits used by the five biggest oil companies.
Executives from those companies are set to argue for keeping those tax breaks -- and defend themselves against accusations they are making outsize profits -- during a Senate Finance Committee hearing today.
Backers of the House drilling bills said the legislation would eventually lower oil prices by ensuring more crude is tapped domestically.
Opponents said any benefits in increased supply could be a decade away, since it could take years for companies to buy new drilling leases, launch exploratory drilling and eventually produce oil from any discoveries.
The bill passed by the House on Wednesday would give the federal Bureau of Ocean Energy Management, Regulation and Enforcement a maximum of 60 days to approve or reject applications for offshore drilling permits. If a decision weren't made during that period, those permits would automatically be deemed approved.
Oil industry leaders and their congressional allies have complained that the ocean energy bureau has moved too slowly in considering specific drilling plans.
The agency has permitted 52 new shallow-water wells since imposing new safety mandates last June, and it has approved 13 deep-water wells since a moratorium on that exploration was lifted last October.
The second drilling bill debated Wednesday would require the government to plan offshore drilling lease sales in areas where it is believed there are more than 2.5 billion barrels of oil or more than 7.5 trillion cubic feet of natural gas.
Possible veto
Although it stopped short of threatening to veto the legislation, the Obama administration said the bill would effectively mandate offshore drilling lease sales "along the entire East Coast, offshore California and elsewhere, without providing states and local citizens the opportunity to share views about where exploration should happen."
The ocean energy bureau is developing its plan for lease sales on the outer continental shelf from 2012 through 2017, but the administration has already said that drilling blueprint will not include oil and gas development on the East and West coasts.
Only suntan oil?
Rep. Ed Markey, D-Mass., underscored the White House argument that the legislation would force states that oppose offshore drilling to accept it near their coasts. In California, he said, "the only oil the people on those beaches want is suntan oil."
At times Wednesday, the congressional debate veered into clashes between big oil- and gas-producing states -- and those that are net consumers.
Sen. Mary Landrieu, D-La., angrily accused Florida, New York, Ohio, Michigan and other states of producing little energy while sucking up oil and natural gas extracted outside their borders.
"There are a lot of states ... that don't produce, don't conserve, aren't efficient and all they want to do is yell about high gas prices," Landrieu said. "Why don't you do something about it?"
Landrieu singled out Florida, a net energy importer that uses natural gas piped in from other states "so they can light up their state."
Rep. Jay Inslee, D-Wash., said his state stood ready to provide more energy, in the form of renewable power. But he said Congress is not doing enough to encourage the development of alternative clean-energy technology.
Democrats' efforts
Republicans turned back a variety of Democratic amendments, including one that would have blocked companies from getting new leases unless they renegotiate any they own that waive royalty payments to the federal government. Another blocked Democratic proposal would have forced federal regulators to consult with an independent drilling safety organization as part of their drilling permit reviews.
by Jennifer A. Dlouhy
|
Houston Chronicle
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