Offshore Issues of Primary Concern in Passing of Energy Bill

Sea Technology, Aug 2005

On June 28, 2005, the U.S. Senate passed its version of the comprehensive energy bill, giving the legislation, according to the National Ocean Industries Association (NOIA), one of the strongest shots at enactment since President George W. Bush's administration began calling for it in 2001.

Leading up to this vote, said NOIA officials, offshore energy production received unprecedented attention and coverage. With substantial floor debate, this marks the first time in at least two decades that moratoria policy has received full vetting on the Senate floor.

NOIA representatives also suggested that inland states and coalitions of end-users exerted increased influence. During the U.S. House of Representatives debate this past May, for example, Ernest J. Istook (R-OkIa.) and John E. Peterson (R-Pa.) each introduced amendments to the U.S. Interior Department appropriations bill that, according to the officials at NOIA, would have allowed coastal states to seek the removal of moratoria from areas offshore their states. NOIA maintains that similar measures were debated by the U.S. Senate. John W. Warner (R-Va.) introduced an amendment with similar provisions, and debate followed before the amendment was ultimately withdrawn when a filibuster-proof majority proved elusive.

According to NOlA, in its final form, the Senate Energy Bill contains one key provision directly benefiting the offshore industry. The bill includes calls on the Minerals Management Service to conduct an inventory of resources on the Outer Continental Shelf.

NOIA believes that this is particularly noteworthy because of the support this particular provision drew from the senators from Virginia and Georgia, states that were repeatedly against this inventory in the past. However, this inventory brought vocal opposition from other lawmakers, Florida in particular.

"It is the first step to drilling. It is the proverbial camel's nose under the tent," declared Bill Nelson (D-FIa.). "What we are doing [with this inventory] is something new. We are doing seismic explosions using air guns on the ocean floor."

"For millions of Americans, the most important thing this bill does is to help stabilize and lower the price of natural gas," said Lamar Alexander (R-Tenn.). "We hear a lot about high prices for gasoline at the pump, but the bigger problem is the price of natural gas."