Wednesday, March 21, 2012

Re: Obamaâ s offshore drilling pledge re-states plan-The Hill's E2-wire existing

President Obama's State of the Union speech endorsed extensive offshore oil and gas drilling but not modify existing regulations that energy companies and Republicans complain too narrow.

Obama, In his speech, called for further increases in U.S. oil production. "The last three years, we've opened millions of new acres for oil and gas exploration and tonight, I open my Administration to more than 75 percent of our potential offshore oil and gas resources exercise," Obama said in the capital.

The "75%" comment, however, is a nod to the Department of Home Affairs 2012-2017 offshore leasing design plan, unveiled late last year. An official Obama administration confirmed that the note a reference to the Interior plan released last November.

No Congressional approval, that plan, which envisions a suite of new oil and gas lease sales in resource-rich areas in the Western and Central Gulf of Mexico and, in the later years, of northern coast of Alaska is required.

But the plan does not include leasing for the Atlantic coast or in the eastern Gulf of Mexico regions — the Administration from consideration in the wake of the BP oil spill 2010-drawn. (Leasing in the eastern Gulf to remove the moratorium legislation should instead there.)

Republicans and oil companies have plans that would require vast leasing in comparison with the Interior proposal push.

Proponents of broader drilling also say that testing and exploration in unexplored areas, such as Virginia's coast, will produce comprehensive resource estimates.

Parliament approved legislation last May that the Administration envisions much wider mandate than leasing, including areas for the Atlantic and Pacific coast.

House natural resources Committee Chairman Doc Hastings (R-wash.), the author of the House-passed measure, knocked Obama argues that the reactions to the drilling, "exalted" rhetoric at odds with the White House record on energy.

Hastings, in a statement, said, "an accurate description of President Obama energy policy would include: recovery of an offshore drilling ban the Atlantic and Pacific coast."

He knocked other white house policy he claims hamper creation and energy work security, including rejection of the Keystone XL oil sands pipeline.

Obama speech, in addition to the offshore drilling onshore natural gas production, touted extensive comments while reiterates its call repealing the oil industry tax breaks.

The tax proposal attracted an onslaught of the American Petroleum Institute, an industry trade group. "Advocates for larger production of energy, but that energy is not punished those who prescribe a good energy policy, but a contradiction," said Jack Gerard, CEO of the group, in response to Obama speech.

Interior Department officials, when the rollout of the offshore design plan last November, said it was the right balance.

"The proposed programme promotes safe and responsible domestic energy production by offering significant area for lease in regions with known potential for oil and gas development," said Interior and announcement of the plan.

In his speech Tuesday, Obama, offshore drilling rules which imposed stricter touted Interior after the 2010 BP leaks. "I will not back down from to ensure that an oil company can contain the type of oil disaster in the Gulf we saw two years ago," he said.

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