U.S. Department of the Interior News
Date: July 30, 2008
Interior Department Initiates New Five Year
Oil and Gas Leasing Program for Outer Continental Shelf
Seeks
Public Comment to Address Changed Energy Situation
WASHINGTON,
D.C. Saying the nation’s energy situation has dramatically changed
in the past year,
Secretary of the Interior Dirk Kempthorne today jumpstarted
the development of a new oil and natural gas leasing program for the
U.S. Outer Continental Shelf. The action could give the next
administration a two-year head start in expanding energy production
from federal offshore jurisdictions, including some areas where a
congressional ban had prevented oil and gas development.
“When our
current five-year program
for Outer Continental Shelf oil and gas leasing was launched in July
2007, oil was selling for $64 a barrel,” Kempthorne said. “Today a
barrel of oil costs more than $120, almost double the price a year
ago. Clearly, today’s escalating energy prices and the widening gap
between U.S. energy consumption and supply have changed the
fundamental assumptions on which many of our decisions were based.”
“Areas that were considered too
expensive to develop a year ago are no longer necessarily out of reach
based on improvements to technology and safety,” Kempthorne noted. “The American people and the President want action and this initiative
can accelerate an offshore exploration and development program that
can increase production from additional domestic energy resources.”
President Bush lifted the
Executive Withdrawal on oil and gas leasing operations on the Outer
Continental Shelf on July 14, calling on Congress to lift its ban that
has been in place since 1982. He also urged Congress to enact
legislation that would allow states to have a say regarding
operations off their shores and to share in the resulting revenues.
“The President believes coastal
states should have a voice in how Outer Continental Shelf resources
are developed off their shores while ensuring those environments are
protected. Also, Congress should provide a
way for the federal government and states to participate in revenue
sharing from those new leases,” Kempthorne said.
Because of the current energy
situation and the President’s action, Secretary Kempthorne has
directed the Minerals Management Service to begin the initial steps
for developing a new
five-year program that accurately reflects the nation’s
needs. The multi-year process starts with a call for information from
all parties on what a new five-year program should consider. MMS is
also requesting comment to ensure that all interests and concerns are
considered regarding oil and gas leasing and exploration and
development resulting from a new five-year program. The governors of
all 50 states will be specifically asked for their comments,
particularly on issues unique to each state.
“This initiative could provide a
significant advantage for the incoming administration, offering
options it would not otherwise have had until at least 2010,”
Kempthorne said. “Today’s action would provide a 2-year head start for
the next administration on developing a new five-year program.”
The current program runs from
2007-2012 and includes 21 lease sales in eight of the 26 Outer
Continental Shelf planning areas in the Gulf of Mexico, Alaska and the
Atlantic. It does not include areas under a congressional ban, with
the exception of Virginia. The new program, depending on public
comment, can consider any area although any leasing in a banned area
would need congressional action.
The
Outer Continental Shelf
currently provides 27 percent of U.S. domestic oil production and 15
percent of domestic natural gas production -- most of that from the
Gulf of Mexico. The areas under a congressional ban contain an
additional 18 billion barrels of oil and 76 trillion
cubic feet of natural gas in yet-to-be-discovered fields.
Those numbers are considered conservative estimates
because little exploration has been conducted in most of those areas
during the past quarter of a century
because of the congressional ban. Interior’s estimates are based on
available data. Estimates tend to increase dramatically as technology
improves and exploration activities occur.
This initiative uses the process
mandated by the
Outer
Continental Shelf Lands Act Amendments of 1978
(286.05 KB PDF file), which
give the Secretary of the Interior authority to develop “out-of-cycle”
leasing programs and requires various procedural steps, including
several rounds of public comment and multiple environmental reviews.
The Call for Information will be
published in the
Federal
Register on August 1, 2008. The public may submit comments
during the next 45 days by using
MMS’ Public Connect
online commenting system or by mail to:
Five-Year
Program Manager
Minerals Management Service (MS-4010)
381 Elden Street
Herndon, VA 20170
The full text of the notice and
details on submitting comments will be included in the register
announcement. All comments must be received by September 15, 2008.
More information is
available at www.doi.gov and
at www.mms.gov.
Contact:
Chris Paolino, (202)
208-6416
Dave Smith, (202)
208-3985
MMS: Securing Ocean Energy & Economic Value for America
U.S. Department of the Interior
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