Virginia offshore drilling put on hold pending review of Gulf coast spill
The Obama administration announced on Friday that it is suspending any action on new offshore oil and natural gas drilling – including Virginia offshore drilling – until a federal review of the April 20 Gulf Coast spill is completed reports the New York Times. Speaking in the Rose Garden, President Obama directed Interior Secretary Ken Salazar to launch a 30-day investigation to determine any and all safeguards that need to be adopted to prevent future spills. Here is a brief excerpt of the Presiden’t remarks:
So, let me be clear. I continue to believe that domestic oil production is an important part of our overall strategy for energy security, but I’ve always said it must be done responsibly, for the safety of our workers and our environment. The local economies and livelihoods of the people of the Gulf Coast as well as the ecology of the region are at stake. And we’re going to continue to update the American people on the situation in the Gulf going forward.”
In a bid to put America on the path toward energy independence, last month the President lifted the long-standing federal ban on oil and natural gas development off the Atlantic Coast. The President’s decision set in motion a process aimed at leasing areas 50 miles off Virginia’s coast for development as early as 2012. The development of the more than 3 million acres off Virginia’s coast – known as Lease Sale 220 – is expected to create as many as 15,000 jobs. If Virginia’s congressional delegation is successful in obtaining the same portion of royalties for Virginia as Gulf states currently receive (roughly 35%), the state of Virginia could expect to generate between $38 million and $56 million each year from the development.
The Interior Department estimates the area to hold 130 million barrels of oil and 1.14 trillion cubic feet of natural gas.
Virginia’s Governor Bob McDonnell, a staunch proponent of drilling off Virginia’s coast, said on Thursday that he supports an “exhaustive” investigation into the causes of the Gulf Coast spill and urges the adoption of stricter environmental protection measures for future offshore development reports the Richmond Times-Dispatch.
Editorial Note: The Virginia Energy Independence Alliance vigorously supports all efforts undertaken to ensure that all of Virginia’s energy resources are developed in a safe and environmentally responsible way.
