Wicker Pushes Action on More Off-Shore Drilling

WICKER PUSHES ACTION ON MORE OFF-SHORE DRILLING

In the waning days of this term, Congress has an opportunity to increase domestic oil and gas exploration and bring millions into the Mississippi treasury. Both the House and Senate have approved legislation to allow drilling on the outer continental shelf (OCS). Efforts are under way to reach agreement on the differing versions and take this key step toward energy independence before adjournment in December.

I have been a strong proponent of action to tap into the enormous oil and gas deposits within the U.S. and along its coastline. The House-passed Deep Ocean Energy Resources Act would open more than 350 million acres of the OCS for energy exploration. The measure would lift a 25-year moratorium on OCS production while giving states the authority to limit drilling within 100 miles of their coastlines.

STATES SHARE REVENUES

The legislation also would permit states that allow exploration to share revenues from royalties and leases. Under current law, the vast majority of that revenue now goes to the federal treasury. Mississippi could receive $250 million per year from future and existing leases under the new provisions.

Lifting the lid on oil and gas drilling in the OCS would create thousands of new jobs and help reduce the cost of gasoline at the pump. This production does not represent a threat to the environment. The drilling can be done in an environmentally-safe manner using today's high-tech equipment and the most efficient engineering techniques.

SENATE BILL NOT AS BROAD

The Senate version is far less sweeping than the House bill. It would open only 5.7 million OCS acres (out of 611 million) to new leasing. That amounts to less than one percent of total OCS acreage presently under the drilling moratorium. The measure provides a 125 mile buffer on drilling for Florida in the eastern Gulf of Mexico, but does not address other coastal states' rights to regulate exploration. The Senate bill would provide 37.5% in revenues from new leases with the four oil and gas producing states in the Gulf of Mexico.

The U.S. is the only developed country in the world that still places the vast majority of its off-shore energy resources off-limits to exploration. While the nation's energy needs continue to grow, more than 85 percent of the OCS is presently under a drilling ban. The U.S. Minerals Management Service estimates the OCS contains 76 billion barrels of oil and more than 400 trillion cubic feet of natural gas. We can and should take action now to lift that moratorium and tap these resources to meet the energy challenges confronting us.

OPTIMISTIC ABOUT PROSPECTS

I am optimistic an agreement can be reached to secure passage of this legislation despite the short time span remaining in this Congressional session. This represents a golden opportunity to produce a year-end present to the American people that will reduce gasoline prices and help make the U.S. more energy self-sufficient.

http://www.house.gov/wicker/drill.htm