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Home Social & Political Drilling Moratorium: Preventing a negative impact in the Texas Gulf Coast
Drilling Moratorium: Preventing a negative impact in the Texas Gulf Coast Print E-mail
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Written by Congressman Peter Olson   
Thursday, 22 July 2010 08:02

The Deep Water Horizon oil spill in the Gulf of Mexico is a tragedy that has had a profound impact on our nation. But some of the negative impacts can be avoided if common sense is applied to this problem.

 

Businesses and communities are frustrated by the time it took to stop the leak. Many people have expressed their anger about how the federal government missed opportunities to do more to help the impacted communities and address the spill. The response from the Administration has fallen far short.

 

In Congress, Senate Majority Leader Reid and House Speaker Pelosi asked their committee chairs to create legislation to address issues surrounding the spills.  Unfortunately, these bills are being brought up hastily before we have all of the facts and we have had a chance to review the legislation or learn the root cause of the disaster.

 

In the Transportation and Infrastructure Committee, of which I am a member, oil spill legislation was brought up that contained concerns for the entire industry.  One of those concerns was the complete repeal of the $75 million liability limit set for offshore facilities.  I raised concern with this issue and offered a workable solution.

 

In my amendment, I called on each rig to be assessed individually on its own unique condition.  I put forth a list of 12 criteria that the Administration should take into account when assessing liability risks including; well depth, well pressure and the company’s safety record to name a few.  While this may not be the perfect solution, it is a more reasoned approach than doing away with the liability limits that would squeeze out the smaller operators leaving room only for the large ones.  Although not part of the final bill, the Chairman has agreed to work with Republicans on this issue going forward.

 

I will continue to work with my colleagues in a bipartisan manner to oppose this Administration’s most recent moratorium on offshore drilling and permitting. This overreaction is creating yet another economic disaster for the Gulf Coast.  The drilling industry employs hundreds of thousands residents of the Gulf Coast. The Houston economy is deeply tied to this sector of the energy industry.

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According to the Greater Houston Partnership, the moratorium has affected 18 firms drilling deepwater exploratory wells in the Gulf.  Sixteen of those firms have a significant presence in Houston. They lease 31 of the 33 deepwater rigs impacted by the drilling ban. These firms must now assess the Interior Department’s newest moratorium at a massive expense or move rigs overseas. Two drilling companies have already announced plans to move rigs to Africa and Egypt. Moving a rig is expensive and once they are gone they will not return to the Gulf for 5-10 years, if at all.

A federal district judge and the Fifth Circuit Court both overturned the original ban stating it was arbitrary and capricious. The new moratorium is more of the same.

 

The Administration should listen to the courts and their own experts that opposed the moratorium, and lift this most recent drilling suspension. This will stabilize our energy supply, keep us less dependent on foreign oil, and keep energy prices down.

 

I have introduced legislation to lift both moratoriums and allow Gulf Coast workers to get back on the job. The legislation has bipartisan support in the House and companion bills in the Senate. I also traveled to the Gulf to see firsthand the impacts of this moratorium and understand better the safety procedures already in place.  I will continue to fight for the residents of the Gulf Coast who are impacted by this arbitrary and unnecessary suspension on offshore drilling. 

We invite all of you to get a discussion going.  Please submit your comments at the end of this article, Thanks.


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written by best replica watches, March 26, 2012
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Citizen of the Gulf Coast
written by Robin White, July 22, 2010
Congressman Olson,

I would be delighted if you would actually listen to the people who want the offshore drilling to stop as opposed to 16 oil companies that want to maintain their profits. We need to have an Earth that can sustain us; it is the priority. This disaster is a perfect opportunity to put our heads together and find a new and better way to work, live and profit in a cleaner environment. Be a great leader and join the search for that solution.
Robin White
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Last Updated on Thursday, 22 July 2010 08:08
 
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