USD 92.2628

-0.33

EUR 99.7057

-0.56

Brent 86.99

+0.1

Natural gas 1.752

-0

648

Oil Drilling Ban Expires

A long-standing congressional ban on new offshore oil drilling will expire next week

Oil Drilling Ban Expires

A long-standing congressional ban on new offshore oil drilling will expire next week, with Democratic leaders in the US Congress conceding on Tuesday they stood no chance of renewing it this year because of the opposition of George W. Bush, US president.

The expiration means that the issue will gain greater prominence in the presidential election because it will be up to the next president and Congress to decide whether to renew all or part of the ban, which first was imposed in 1981 to put much of the California coast off-limits to new rigs and expanded to much of the rest of the US coast in 1985.

The ban was imposed in 1981 to put much of the California coast off-limits to new oil rigs and extended in 1985 to the majority of US coasts.

"This next election will decide what our drilling policy will be," said David Obey, chairman of the House appropriations committee.

Republican presidential nominee John McCain, like Bush, has urged lifting the ban entirely, while Democratic nominee Barack Obama has said that he would consider limited offshore drilling as part of a broader energy-policy compromise.

Oil companies can seek federal approval to drill three miles offshore or farther once the ban expires. Congressional supporters of the moratorium hope that before any new drilling can begin they can renew it or at least win approval of compromise legislation that would forbid energy exploration up to 50 miles off the coast, but let states decide whether to allow it beyond that.

"I think it's awful," said Senator Dianne Feinstein. "This battle is not over. We will come back and fight another day."

But Adam Putnam of Florida, chairman of the House Republican Conference, said: "After a long summer of $4 gas, with winter home heating bills on the way, this good news could not have come too soon."

Democratic leaders faced opposition to extending the ban not only from the White House and many Republicans but from politically anxious members of their own caucus who have come under attack for not doing more to increase domestic energy supplies.

Jeffrey Eshelman of the Independent Petroleum Association of America said: "In light of the financial meltdown, lifting the offshore ban makes perfect sense. It means more American energy, more jobs and increased tax and royalty revenue for the US Treasury."

Author: Jo Amey


Follow us on Google News
Advertising at neftegaz.ru

Subscribe to our newsletter

of the best materials Neftegaz.RU

* Incorrect E-Mail Address

By clicking the "Subscribe" button I accept the "Agreement on the processing of personal data"


Advertising at neftegaz.ru