Offshore drilling still high on the agenda

Us Offshore Drilling

The federal courts remain a battle ground over the location of America's next oil frontier.

Obama's first year in office his policies over offshore drilling has been unclear to say the least. He despite his retoric about curbing fossil fuel usage, in December last year the Interior Department gave the go-ahead for Shell Oil to begin drilling three exploratory wells in the Chukchi Sea, a move that opened the door for production in a new region of Alaska's Arctic.

However another proposal, an aim to drill for oil or natural gas in Florida state waters, has been simmering for some time, yet debate remains heated.

Even as the state Legislature continues to tread water, with Senate President Jeff Atwater's directive that the proposal be studied further before legislation will be considered, around three dozen recently gathered in city commission chambers next to the Capitol to hold a pretty lively debate.

Interference from environmentalists

Progress for the issue of drilling off the coast of Florida has always painfully slow which can only be down to the interference from environmentalists, because the benefits have always been glaringly obvious. According to an ICF International study, offshore developments would create 13,142 jobs and $428 billion in revenues through offshore development, helping Florida to overcome its nearly 11 percent unemployment rate.

It looks like the coast of Florida will indeed soon be populated with a rig or two, which would contradict Obama's previous statements in opposition of any expansion in drilling off American shores based on environmental grounds.

It's easy to understand why both the oil and gas industry and environmentalists have been critical of Obama's policies, especially when, last year, he was involved in the decision that allowed the US Export-Import Bank to give Brazilian-based oil company Petrobras loan guarantees to help finance lucrative offshore drilling off the coast of Rio De Janeiro.

So whereas the oil sector was critical of his prolonged deliberation over exploration in Florida waters, environmentalists are furious with Obama for seemingly being willing to promote the conservation and protection of the ecology in the waters off the coast of America, whilst showing very little concern for the environment elsewhere.

And then he approves drilling in Alaska just to make sure everyone has no clue about his real policy on off-shore drilling.

Good news for off-shore lobbyists

However, there has been some good news for the off-shore drilling lobbyists. According to a new study commissioned by a group of retired military leaders and business executives that has long advocated increased domestic energy production, the argument that increased oil and natural gas drilling in the Gulf of Mexico would hurt military training and weapons testing has been dismissed as having "no merit".

Opponents have often cited a letter, written in 2005 by then-Secretary of Defense Donald Rumsfeld, that called offshore drilling "incompatible" with training and weapons testing off Florida's shores, but this claim is now facing a fierce challenge.

The report states that Rumsfeld's claims, "were, and continue to be, not credible".

Its assessments "are clearly showing that oil and natural gas production will not encroach on the military missions in the Gulf."

The study is based on an analysis of various Defense Department documents as well as consultations with officials from the Offices of the Secretary of Defense, the Department of the Navy, and the Department of the Air Force, and other government agencies.

One fears that this will only add fuel to the fire as the Senate continues the debate over drilling legislation.

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