Lots of news on oil/gas front today


Lots of things happening this week on the oil/gasoline front. First off we have passage of H.R. 1229 which would end the Obama Administration’s De Facto Offshore Drilling Moratorium in Gulf of Mexico. Then we have consideration of H.R. 1231 which would end Obama’s offshore drilling moratorium.

H.R. 1229 was passed with a bipartisan vote of 263 to 163. Introduced by Natural Resources Committee Chairman Doc Hastings, H.R. 1229 will end the Obama Administration’s de facto drilling moratorium in a safe, responsible, transparent manner – putting thousands of Americans back to work and increasing American energy production to help address rising gasoline prices.

“This bill will provide relief to the people of the Gulf of Mexico by allowing them to finally return to work following the Obama Administration’s intentional slow-walking of drilling permits,” said Chairman Hastings [Natural Resources Committee chair, (R-WA).] “With passage of this bill, House Republicans are sending a strong signal that we will not sit idly by while the Obama Administration sidelines American workers, sends American jobs overseas and continues to lock-up our American energy resources at a time of rising gasoline prices. I applaud the House for passing the Putting the Gulf back to Work Act and hope the Senate follows our lead to ease the economic pain in the Gulf of Mexico and help reduce gasoline prices across the country.

H.R. 1229:

  • Improves safety by reforming current law to 1) require lease holders to receive an approved permit to drill before drilling an offshore well and 2) require the Secretary of the Interior to conduct a safety review.* Sets a firm 30 day timeline (with two 15 day extensions) for the Secretary to act on a permit to drill. This simply requires the Secretary to act within the set period of time – it is not a requirement that permits be approved. This firm timeline will make certain that the Obama Administration cannot impose a moratorium through deliberate inaction.
  • Provides 30 days, with no extension, for the Secretary to restart Gulf permits that were approved before the Administration’s moratorium was imposed on May 27, 2010. If the Secretary fails to act, the leases will be put into suspension (the clock stops ticking on the time-limited lease) until a decision is made.
  • Establishes an expedited judicial review process for resolving lawsuits relating to Gulf permits. This reform ensures that ending the de facto moratorium imposed by the Obama Administration isn’t replaced by paralyzing, frivolous lawsuits that could take years to resolve.

Next we have H.R. 1231:

  • The Reversing President Obama’s Offshore Moratorium Act will lift the President’s ban on new offshore drilling by requiring the Administration to move forward on American energy production in areas containing the most oil and natural gas resources.
  • Require that each five-year offshore leasing plan include lease sales in the areas containing the greatest known oil and natural gas reserves.
  • A state’s Governor may request to opt-in to a five-year leasing plan and the Secretary of Interior will include a lease sale, or sales, of the state’s offshore area in the plan.
  • Require the Secretary to establish a production goal when writing a five-year plan. The goal will be the specific amount of oil and natural gas production that is estimated to result from leases made under the plan. Establishes the production goal for the 2012-2017 plan being written by the Obama Administration at 3 million barrels of oil per day and 10 billion cubic feet of natural gas per day by 2027. This 2012-2027 time encompasses the fifteen year period of the five-year plan and resulting ten-year leases made under that plan. By comparison to today’s levels, this increase in oil equates to a tripling of current American offshore production and would reduce foreign imports by nearly one-third.

H.R. 1229, 1230 and 1231 could create 250,000 jobs short-term and 1.2 million jobs long-term according to Dr. Joseph Mason, economist and professor at Louisiana State University.

H.R. 1231 will generate $800 million in revenue over 10 years according to the Congressional Budget Office.

But we have a problem. I visited the Alaska pipeline in Fairbanks about 5 years ago. It is an engineering marvel which may be at risk. Less oil coming out through the pipeline because of companies pulling out of Alaska, namely Shell for one because of EPA regs, means colder temperatures and risk of freezing.

Now, dwindling oil production along Alaska’s northern edge means the pipeline carries less than one-third the volume it once did—and the crude takes five times as long to get to its destination.

The crude within the pipeline can reach 40 degrees causing clogs and backlogs. All at the behest of the Obama administration and his over-zealous EPA regs which cause oil companies to throw up their hands in frustration.

Hopefully letting the public know what is happening and bringing insight to why gasoline prices are higher will put pressure on the present administration to reverse their job-killing, domestic energy-killing practices which will add to more jobs and employment, get people off of government subsistence and add to our national security.

House GOP announces H.E.A.T. House Energy Action Team

Rep. Bob Latta (R-OH) to fight “pain at the pump” with H.R. 1777.

Crossposted at Conservative Outlooks.

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Deplorable Reagan Conservative. Pro-life, pro 2A. Waiting for Obama's "legacy" to be undone.

Twitter: @LadyImpactOhio

"We the People tell government what to do. It does not tell us."__Ronald Reagan in his farewell speech.

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Queen Hotchibobo
May 12, 2011 11:00 am

Good post. It sounds like there are some flickers of light, but those may be from the dynamite that was just lit. Obambi has a lot to answer for. And of course, the media will ignore all the questions.

May 12, 2011 11:30 am

Excellent report LIO. I just checked to see how the House members with districts in the gulf states voted. Here is what I discovered. 4 of the 163 Nay votes came from gulf states Rep. Lloyd Doggett [D, TX-25] Rep. Charles Gonzalez [D, TX-20] Rep. Cedric Richmond [D, LA-2] Rep. Bennie Thompson [D, MS-2] 8 of the 28 Aye votes came from gulf states Rep. Henry Cuellar [D, TX-28] Rep. Al Green [D, TX-9] Rep. Raymond Green [D, TX-29] Rep. Rubén Hinojosa [D, TX-15] Rep. Sheila Jackson-Lee [D, TX-18] Rep. Eddie Johnson [D, TX-30] Rep. Silvestre Reyes [D, TX-16] Rep.… Read more »

May 12, 2011 3:59 pm

HR 1231 passed the House. This bill lifts the moratorium on Gulf oil drilling. Here are the results of how members in gulf states voted. 6 of the 21 Aye votes came from gulf states Rep. Henry Cuellar [D, TX-28] Rep. Sheila Jackson-Lee [D, TX-18] Rep. Eddie Johnson [D, TX-30] Rep. Al Green [D, TX-9] Rep. Raymond Green [D, TX-29] Rep. Silvestre Reyes [D, TX-16] 6 of the 170 Nay votes came from gulf states Rep. Rubén Hinojosa [D, TX-15] Rep. Lloyd Doggett [D, TX-25] Rep. Charles Gonzalez [D, TX-20] Rep. Terri Sewell [D, AL-7] Rep. Cedric Richmond [D, LA-2]… Read more »