Obama Administration to Revamp Offshore-Drilling Plan

By Diane Smith
14:00, February 11th 2009
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Obama Administration to Revamp Offshore-Drilling Plan

This is another piece of news from the category ‘if you wanted change, you got it.”

The Obama administration is continuing the series of changes made to the policies of the Bush administration. This time, the plans for expansion of the oil and gas drilling off the nation’s coasts was halted as Interior Secretary Ken Salazar said he will extend public comments for six months.

The Bush administration planned to drill for oil and gas off the coasts of California, Alaska, Atlantic and Gulf, a move that had public support back then and which angered environmentalist groups.

Mr. Salazar issued an order to the Interior staff to compile data on the potential benefits from oil, gas and renewable development offshore. The Secretary said it also considers proposals for offshore wind farms and the Obama administration will also focus on using renewable sources such as waves or tides.

Salazar, who described Bush’s drilling plan a "headlong rush" based on bad info, vowed to write a new five-year plan for oil and gas exploration off the aforementioned coasts. The zone extends three to 200 miles from the U.S. coast.

"The previous administration was so intent on opening additional areas for drilling offshore that it torpedoed renewable energy," said Mr. Salazar.

The public-comment period, which Salazar extended by 180 days, was scheduled to close March 23.

However, although he did not praise expanded drilling, Mr. Salazar did say the oil and gas companies will have a role in the review process. The Interior Secretary did not say whether President Obama will reinstitute the ban on offshore drilling lifted by President Bush in 2008. The move made by the Bush administration was made amid the explosive price growth of the gasoline prices.

However, Mr. Salazar’s move was criticized by energy industry groups of making a disservice to U.S. citizens amid tough economic times.

"We should be moving as quickly as possible to develop more of our own oil and natural gas to benefit all Americans," said Mr. Jack Gerard, the president of the American Petroleum Institute.

According to a study to be released this month by the American Energy Alliance, tapping about 86 billion barrels of oil and 420 trillion cubic feet of natural gas from the aforementioned areas would earn the United States about $8.7 trillion. The projects would also create 1.2 million jobs over the next 3 decades.

On the other hand, environmentalist groups argue that although the above mentioned figures sound very good amid tough economic times, the risk posed by offshore drilling to marine life and coastal communities is much higher and could cause costs higher than the benefits. An oil spill in these areas would be a disaster for the environment and the region’s tourism industry.

In another change of policy news, the EPA said it will reconsider a rule that enables industrial plants, refineries and paper mills to emit more smog and soot.



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