US President Barack Obama and Interior Secretary Kenneth Salazar have disclosed plans to include waters off the East Coast south of New Jersey in future sales of Outer Continental Shelf leases.
"By providing order and certainty to offshore exploration and development and ensuring we are drilling in the right ways and the right places, we are opening a new chapter for balanced and responsible oil and gas development here at home," said Interior Secretary Ken Salazar.
Their plan expands leasing in the eastern Gulf of Mexico at least 125 miles off the Florida coast and allows sale of leases off Virginia to proceed under the current 5-year plan. Other areas off the southern and middle Atlantic states might be included in lease sales after 2012.
The Department of the Interior’s Minerals Management Service estimates that the Gulf of Mexico contains 36-41.5 billion barrels of undiscovered, economically recoverable oil and 161-207 trillion cubic feet of undiscovered, economically recoverable natural gas resources.
New Jersey northward, and the Pacific Coast from Mexico to the Canadian border would remain off limits to drilling activity, as would the environmentally sensitive Bristol Bay in southwestern Alaska. Leasing in the in the Chukchi and Beaufort Seas would be delayed until at least 2012.
Industry response
Following the announcement regarding access to billions of barrels of American oil and trillions of cubic feet of natural gas along the nation’s Outer Continental Shelf, Barry Russell – president and CEO of the Independent Petroleum Association of American (IPAA) – issued a statement.
“The announcement today from the President is a welcomed first step to addressing the nation’s future energy needs. For decades, Washington has failed to make the tough decisions necessary to develop a responsible, 21st century American offshore oil and gas program. Both Republicans and Democrats are responsible for the short-sighted missteps that have kept these enormous amounts of homegrown energy off-limits.
Russell urged the Administration and Congress to put the plan in place, stressing the long lead times involved in energy development. “It is also important to remember that offshore energy development will not happen overnight.”
“Given the lengthy process, it is imperative that the Administration and Congress put their plans in motion today. Otherwise, the US will continue to further its dependence on foreign resources and send more American dollars overseas.”
Securing America's Future Energy (SAFE) also commented on President Obama's announcement today, but also cautioned that much work remained.
"The Obama administration deserves credit for signaling its intention to pursue policies that will lead to safe domestic production of energy off the Atlantic coast," SAFE senior vice president Jonathan Grella said. "However, there is still much work to be done. Until Congress lifts the moratorium on exploration and production in the Eastern Gulf of Mexico, some of the most energy-rich areas within US borders will remain unutilized."