Greetings!
Last week I was in Florida where I had many opportunities to introduce my white paper: Solar Power in the US. Thanks for your help in getting the word out about it. It has been noticed! Today I received a Google Alert about an attack piece published in CleanTechnica.com. As my uncle (Ron Chapman from Dallas’ KVIL radio) told me, “the only worse than being attacked is being ignored.” Obviously, we are making an impact.
While I was in Florida, I was able to sit in on an “Energy 101” legislative briefing put on by the Consumer Energy Alliance. There, I renewed my acquaintance with Randall Luthi, president of the National Ocean Industries Association—we’d met a few years ago in Washington DC. He was one of the presenters at the briefing where the one of the topics addressed was offshore oil-and-gas activity. That experience became the impetus for this week’s column: Access to mid-Atlantic energy resources advances long-term energy security (attached and pasted-in-below). The public comment period for the plan that could allow exploration and extraction in the mid-Atlantic ends March 30—which makes the topic newsworthy now.
As always, please post, pass on and/or personally enjoy Access to mid-Atlantic energy resources advances long-term energy security.
Thanks for your interest!
Marita Noon
Executive Director, Energy Makes America Great, inc.
PO Box 52103, Albuquerque, NM 87181
505.239.8998
Access to mid-Atlantic energy resources advances long-term energy security
At the end of January, the Obama administration announced the next step in a long process that could result in the exploration and ultimate extraction of oil-and-gas resources of the U.S. mid-Atlantic—something the Outer Continental Shelf (OCS) Governors Coalition supports. On March 30, the 60-day comment period ends. If everything goes well, we could see new American resources on the market in twenty years.
With the current oil oversupply, it may seem like an odd time to be going after more. However, the legal wheels that could allow limited access to the vast, untapped oil resources move very slowly. Today’s market conditions will fluctuate up and down many times between now and 2035 when the global demand for energy is expected to spike. Not to mention the increasingly volatile situation taking place right now in the Middle East, where new coalitions are already being formed: Iran and Iraq, Saudi Arabia and South Korea—just to name two. If one more beheading takes place or a bomb hits the right (or wrong) target, the region could erupt, and the entire energy dynamic would change. Considering the variables, American energy security is always something worth pursuing.
The planning for the 2017-2022 OCS leasing program began June 2014, when the Bureau of Ocean Energy Management (BOEM) issued a request for information and comments. Then, in January, it published the Draft Proposed Plan; the Final Proposed Plan is anticipated in Q4 2016 or Q1 2017, with it probably taking effect in Q2/Q3 2017. The 2017-2022 plan proposes just one mid-Atlantic lease sale six years from now—and even its future is precarious. The mid-Atlantic currently has no leases in federal waters.
Explaining the process, Offshore magazine writes: “The OCS Lands Act requires the Secretary of the Interior to prepare a five-year program that includes a schedule of potential oil and gas lease sales and indicates the size, timing and location of proposed leasing activity as determined to best meet national energy needs, while addressing a range of economic, environmental and social considerations.”
BOEM estimates that the entire U.S. OCS holds approximately 90 billion barrels of oil and more than 400 trillion cubic feet of natural gas which are technically recoverable. Based on 30 to 40 year old data, it estimates that the mid-Atlantic OCS may contain approximately 8-9 billion barrels of oil equivalent—which at current consumption rates would be enough to meet South Carolina’s needs for 67 years. New seismic and other geological and geophysical surveys are needed. Modern practices and technologies will provide a more comprehensive view that will help make informed decisions on using the resources.
While the proposal for possible mid-Atlantic development faces opposition from environmental lobbyists, who call it a gift to oil-and-gas interests and an anchor to the “dirty fossil fuels of the past,” it enjoys a favorable political climate in the affected coastal states, where polls show citizens support offshore drilling.
When the January announcement came out, North Carolina’s Republican Governor Pat McCory, chairman of the OCS Governors Coalition, applauded the proposal: “Responsible exploration and development of oil and gas reserves off our coast would create thousands of good paying jobs, spur activity in a host of associated industries, generate billions of dollars in tax revenue and move America closer to energy independence.” Even Virginia’s Democrat Senators say the proposal is a “significant step … that should result in safe, responsible development of energy resources off the Virginia and mid-Atlantic coasts.”
Both the senators and governors want to see legislation passed that would provide for the same type of revenue-sharing system currently applied to the Gulf States to compensate local communities for additional infrastructure, environmental protection, and other coastal management needs generated by the new economic activity. If Congress allows revenue sharing, Brydon Ross, Southeast director of the Consumer Energy Alliance (CEA), predicts: it “could generate more than $10 billion in revenue combined for critical public budget infusions without taxpayer dollars.”
Unfortunately, even though it is included in the draft proposal and is supported by lawmakers in the impacted states, future mid-Atlantic resource development is not a sure thing. The Washington Post (WP) calls the plan: “politically fraught.” Jeremy Kennedy, an attorney who focuses on domestic- and international-energy transactions, says: “The planning, review and adoption of the 2017-2022 leasing program is, at its core, a political process.”
“This is a political plan,” Randall Luthi, president of the National Ocean Industries Association, stated: “not a plan based on science and resource data”—though he acknowledged it “is a small step in the right direction.” Luthi added: “Our members are encouraged by the decision to further analyze the mid- and south-Atlantic areas, which have not been included in a leasing program for over two generations.”
The 2017-2022 five-year plan is still in the early stages. Addressing the ongoing process, Kennedy explains: “Each of the steps … will winnow the scope of the 2017-2022 leasing program.” The WP reports: BOEM “could decide to narrow—but not expand—the proposed leasing area before it is finalized.”
Kennedy sees that “little is certain at this time.” After all, the Obama administration has killed previous potential lease sales. “Once published,” he states, “planned lease sales can always be cancelled or delayed by the Interior Department, president or Congress.”
Will the U.S. pursue development of our own offshore oil-and-natural gas resources in the Atlantic, as Canada, Cuba, the Bahamas, and South American Atlantic-coast countries are doing? No one really knows—but we should. Supporters of American energy security need to get involved in the “political process” by making our voices heard. Add your public comment before the March 30 deadline. Tell BOEM: “America can balance energy production with environmental protection.” Let Interior Secretary Sally Jewell know that you support “Greater access to our bountiful energy resources and advancing long-term energy security, while growing our coastal communities.”
The CEA has a customizable letter to make it easy for you to “act now!”
The author of Energy Freedom, Marita Noon serves as the executive director for Energy Makes America Great Inc. and the companion educational organization, the Citizens’ Alliance for Responsible Energy (CARE). She hosts a weekly radio program: America’s Voice for Energy—which expands on the content of her weekly column.
