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Political pandering or eleven-dimensional chess? You decide, because I sure don't know...
Obama administration shifts stance to speed oil and gas drilling.
Amid accusations from Congressional Republicans and their major donors in Big Oil, coupled with rising prices at the gas pump, President Obama has made an apparent policy shift in regard to domestic oil and gas drilling.
In what looks like a concession to the oil interests, the Saturday announcement would ease restrictions implemented after the Deepwater Horizon disaster, and speed the development of domestic exploration in areas previously off limits to drilling.
However, the changes would not happen quickly, nor give any immediate relief from gas prices.
Administration officials said the president’s announcement, which included plans for expanded drilling in Alaska and the prospect of new exploration off the Atlantic coast, was intended in part to answer those arguments, signal flexibility and demonstrate his commitment to reducing oil imports by increasing domestic production.
But in fact the policies announced Saturday would not have an immediate effect on supply or prices, nor would they quickly open any new areas to drilling.
“These spikes in gas prices are often temporary,” Mr. Obama said, “and while there are no quick fixes to the problem, there are a few steps we should take that make good sense.”
The administration would hold annual auctions for oil and gas leases in the Alaska National Petroleum Reserve, a 23-million-acre tract on the North Slope of Alaska, a move pushed for by both of Alaska's senators, Lisa Murkowski, a Republican, and Mark Begich, a Democrat. Leases would also be extended for drilling in the Arctic Ocean off Alaska and the Gulf of Mexico - both restricted after the BP spill, ostensibly to prevent the expiration of said leases while more rigorous safety measures are implemented, and provide incentives to develop leases already held, which amount to tens of millions of acres, both on land and offshore.
The actions loosen some constraints on the oil industry, but do not completely reverse the restrictions imposed after the Gulf disaster. The move comes after a series of bills pushed through the Republican-controlled House, attempting to force the administration to open up even more public lands to unrestricted drilling. The White House has opposed the bills, but has indicated that some points might be given, such as the extension of the frozen leases in the Gulf and Alaska.
Even then, then changes have been called "not terribly substantial".
Responding to the shift by the administration, Brendan Buck, a spokesman for Speaker John A. Boehner, said, “The president just conceded what his party on Capitol Hill still denies: more American energy production will lower costs and create jobs. This reversal is striking, since his administration has consistently blocked American-made energy.”
Although Mr. Buck characterized the policy changes as “not terribly substantial,” he added that they should “pave the way for legislation, like the bills the House passed in the past two weeks, to reduce the damage from the restrictions he imposed in the past.”
Congressional Democrats have voiced approval for the administration's move, saying it works in a broader context, which includes revoking tax breaks for oil companies, and encourages drilling on land already leased.
Environmental leaders have taken a wait and see attitude.
Response from environmental advocates was muted. Eric Myers, Alaska policy director for the National Audubon Society, said conservationists were willing to see an increase in drilling in the Alaskan petroleum reserve as long as it did not threaten wildlife, waters or sensitive lands.
The Arctic National Wildlife Refuge in Alaska will remain off limits to oil and gas drillers, administration officials said Friday.
Also covered in the address is the impending Justice Department investigation of possible price manipulation and subsequent record profits in the petroleum industry.
“In the last few months, the biggest oil companies made about $4 billion in profits each week,” Mr. Obama said. “And yet, they get $4 billion in taxpayer subsidies each year. Four billion dollars at a time when Americans can barely fill up their tanks. Four billion dollars at a time when we’re trying to reduce our deficit.”
Okay. I am not setting my hair on fire just yet. I'll wait and see what happens. Hey, it's government. Nothing happens quickly...
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