McDonnell calls for offshore oil and gas drilling
In a letter to U.S. Interior Secretary Ken Salazar, Governor-elect Bob McDonnell urged the Secretary to move forward speedily with the awarding of leases for oil and natural gas drilling off Virginia’s coast.
‘It is time to develop our offshore energy resources to create new jobs and provide necessary new revenue for schools, roads, public safety and alternative energy research and development in Virginia,’ McDonnell wrote to Secretary of the Interior Ken Salazar…
McDonnell says a 2005 study by a former president at Old Dominion University forecast that offshore natural gas production alone off of the Atlantic coast near Virginia would, over a 10-year period, likely create at least 2,578 new jobs, induce capital investment of $7.84 billion, yield $644 million in direct and indirect payroll, and result in $271 million in state and local taxes.
The study also estimated that there could be up to 500 million barrels of oil in this lease area – enough to fuel all four million cars in Virginia for more than four years.”
Despite the recommendation of outgoing Governor Kaine and the Virginia General Assembly, the exploration and development of this vast resource is still entirely dependent on federal action. According to reports in the Richmond Times-Dispatch, although Congress allowed a longstanding federal moratorium on Atlantic Coast exploration and drilling to expire in 2008, Congress must still overturn a temporary ban it imposed in its place. Additionally, President Obama would need to rescind the federal freeze on drilling once exploration is completed.
