FOR IMMEDIATE RELEASE July 3, 2008
With record high gas prices continuing to climb, the Republican Senate Caucus today sent letters containing an outline of a plan to increase domestic oil production. The proposal also calls for a long-range policy designed to provide for future energy needs and development of the next generation of power resources. Letters were sent to the North Carolina Congressional Delegation, President Bush, and presumptive presidential candidates Senator John McCain and Senator Barack Obama. Senate Republicans called for action by the Federal Government on issues including drilling in ANWR and exploration and drilling for oil and natural gas off the coast of North Carolina along the Outer Continental Shelf (OCS), 45 to 100 miles offshore. The proposal, if adopted, should lower fuel prices in the short term and will implement a long-range plan for energy independence.
Senate Republican Leader Phil Berger (R-Rockingham) said, “North Carolina's people, especially our working families, are seeing their economic security and stability threatened by high fuel prices. Those high prices and the domino effect on the cost of food and other necessities, demand the immediate and full attention of all elected officials in North Carolina and beyond. Thus far, calls for help have fallen on deaf ears as Democrats, in control of Congress at the Federal level and entrenched in power in North Carolina’s Legislature, ignore obvious steps to deal with the growing problem.
“Dependence on foreign sources of energy, especially oil, exposes our country and our economy to great risk as we have seen all too clearly in the last year. We cannot afford oil and energy dependency that leaves us this susceptible to economic harm. By supporting domestic exploration and drilling on the Outer Continental Shelf and elsewhere, we will see additional supplies become available, reduce upward price pressures, and lessen our dependence on foreign supplies. The law of supply and demand teaches us an increasing supply of oil in the market will cause prices to fall. Once oil producing countries see us take these steps toward self-sufficiency in energy, much of the current speculation on future prices will lose its attraction as there will be a substantial risk of downward price movement. This is the only plan that will work and will do so quickly.
“For North Carolina, as a coastal state, deep sea oil exploration and drilling on the outer continental shelf has the additional prospect of bringing new jobs and industry. For years, we have seen various government plans to create a thriving, sustained economy in the eastern part of our state; this plan will make those dreams a reality without costing the state treasury millions of dollars for risky incentive- laden gambles. The leasing of exploration and drilling rights will actually bring money into our state’s coffers. And with available modern technology, oil exploration is environmentally safe and provides new and significant benefits to coastal marine assets. Lease proceeds could be used, in part, to help fund significant initiatives for wetlands and estuary restoration. Every North Carolinian wins by adoption of this approach.”
Senator Bob Rucho (R-Mecklenburg), an advocate of immediate OCS exploration and a signer of the policy statement, said, "The people of North Carolina, facing the negative consequences of the energy crisis, expect their elected officials to lead, follow or get out of the way. Our Federal Delegation should step up and support North Carolina’s working families by implementing these recommended policies to immediately lower oil and gas prices and promote the development of alternative energy technology, long-term energy independence and economic prosperity for all North Carolinians."
The Senate Republicans’ policy statement follows this relea
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July 2, 2008
WHEREAS, America is confronted with an energy crisis, the price of fuel continues to rise, creating an economic strain for working families and a threat to our economy and National security; and
WHEREAS, higher gas prices over the last year have increased the expense of operating a family vehicle by an estimated $2000 per year per vehicle thereby reducing the funds available to working families for food, clothing, shelter, recreation and other items; and
WHEREAS, the duty to protect the American people from foreign supply manipulation and economic dependence upon terrorist states rests with the United State Congress; and
WHEREAS, to date there has been no Congressional action to effectively address the current energy crisis and develop a comprehensive long range energy policy; and
WHEREAS, the Peoples Republic of China, under license from Cuba, is already engaged in exploration for oil and gas off the coast of Florida; and
WHEREAS, most oil producing countries upon which the United States relies for oil and gas have no interest in the wellbeing of the people of North Carolina or the American economy, and
WHEREAS, consistent with the law of supply and demand, a commitment to an increase in the domestic supply of gas and oil would stabilize the market and help reduce the cost per barrel; and
WHEREAS, there are currently vast quantities of crude oil and natural gas beneath the Arctic National Wildlife Refuge, in the western states, and offshore under the outer continental shelf; and
WHEREAS, approximately 270 million acres of the Atlantic Offshore Continental Shelf is managed by the US Minerals Management Service and currently affected by the drilling moratorium; and
WHEREAS, on November 17, 2000, the interests in the last remaining 8 natural gas and oil leases in the Federal waters offshore North Carolina were relinquished by Conoco, Shell Offshore and OXY USA; and
WHEREAS, the US Coastal Zone Management Act of 1972 requires all Federally permitted coastal energy activity on the Offshore Continental Shelf to be consistent with the adjacent State’s coastal management program to the maximum extent practicable; and
WHEREAS, the NC Division of Coastal Management appointed an Ocean Task Force to examine ocean resource issues, and the Coastal Resources Commission adopted the Task Force’s recommended changes to the State’s coastal energy policies (15A NCAC 07M.0400), which were put into effect under executive order by Governor Hunt; and
WHEREAS, conservation is an important part of an overall energy policy but only part of the solution; a comprehensive answer to the lack of supply and high prices should include an increase in domestic production and additional domestic refining capacity; an
WHEREAS, there is currently a Federal moratorium prohibiting drilling on the Outer Continental Shelf (45 to 100 miles offshore) which would end with the passage of the Deep Ocean Energy Resources Act of 2008, or other similar legislation; and
WHEREAS, the Manteo Prospect is located about 45 miles northeast of Cape Hatteras, North Carolina in Federal waters on the Outer Continental Shelf; and
WHEREAS, the distance of sight to the horizon from a height of 198 feet (focal plane of lighthouse lense) atop the Cape Hatteras lighthouse is 19 statute miles; and
WHERAS, all 21 units over the Manteo Prospect were actively leased for exploration by the Minerals Management Service between 1981 and 1983; and
WHEREAS, Chevron reported potential hydrocarbon reserves of nearly 1.5 billion barrels of oil or equivalent gas in the Manteo Prospect, which would make it one of the largest domestic hydrocarbon discoveries since Prudhoe Bay, Alaska;
WHERAS, geochemical analyses of Atlantic OCS exploratory wells indicate that hydrocarbon source rock for the Manteo Prospect would be more likely to generate natural gas rather than oil; and
WHERAS, Mobil estimated that the Manteo Prospect could contain as much as 5 trillion cubic feet of natural gas (833 billion barrels of oil equivalent), a volume that the US Minerals Management Service concluded could be present given the size and reservoir characteristics of the prospect; and
WHEREAS, advances in geophysical imaging technology have increased the ability to better define reserves and advances in drilling and production technology have decreased the impact to natural resources; and
WHEREAS, the royalties generated from OCS hydrocarbon revenue are distributed to the adjacent States and contribute tens of millions of dollars in revenue; and
WHEREAS, the State of North Carolina will realize significant revenues from the sale of offshore leases, and those funds could be used, in part, to address various environmental and coastal preservation concerns including wetland and estuary restoration; and
WHEREAS, additional positive economic impact of energy and energy-related industries within the hydrocarbon-producing coastal States contributes is also realized through jobs, taxes, and investment; and
WHEREAS, the people of North Carolina expect their federal elected officials to act in a manner that will help solve the long term energy needs of our state and ameliorate the negative economic impact of high gas prices.
THEREFORE, we the undersigned members of the North Carolina Senate request that the North Carolina Congressional delegation take action on this issue, including:
1. Open the Arctic National Wildlife Refuge and outer continental shelf for oil exploration with appropriate restrictions to promote environmental conservation,
2. Pass the Deep Ocean Energy Resources Act of 2008, or similar legislation consistent with the above, and submit it to the President before the end of this session
3. Encourage domestic energy production to reduce the dependence on foreign sources
4. Encourage domestic refining with reasonable regulatory constraints
5. Use a portion of new Federal revenues generated from lease royalties to fund a comprehensive research and development program on feasible and effective energy alternatives and long term energy independence.
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