26-08-04

The federal government has offered 229 mm acres of land for oil and gas leases since 1982, but there has been little reduction in US dependence on foreign sources of energy, according to a report released by a Washington, DC-based environmental group.

"It's the first investigation into how much of the West is open to oil and gas development," Environmental Working Group analyst Dusty Horwitt said. "What this shows is that the West has already been wide open and we have not reduced our dependence on foreign energy sources."

Horwitt said the report reveals that there is no need to pass laws eliminating restrictions on energy development on federal lands. Both President Bush and Republican lawmakers have offered proposals to eliminate restrictions. Some Bush administration executive orders have already been implemented.
Montana Petroleum Association executive director Gail Abercrombie disputed the overall report and specifically criticized its assessment of the situation in the Rocky Mountain Front and Powder River Basin. Abercrombie and Rep. Denny Rehberg, R-Mont., said companies face major hurdles after they acquire leases and permits to drill.

"Practically all of the leases and permits to drill are being litigated," Abercrombie said. "The extensive (National Environmental Policy Act) analysis and lawsuits by environmental groups preclude production in a timely manner."

Rehberg said that the impediments were partly responsible for high gas prices.
"Who do you think is responsible for the high gas prices?" Rehberg asked. "It just seems they never draw the connection between domestic production and high energy prices."

Since 1982, 26.1 mm acres of land in Montana have been offered up for lease, according to the report. Between 1989 and 2003, those lands were used to produce 7.8 mm barrels of oil and 28.5 mm cf of gas, according to the report.

Horwitt noted that Montana oil and gas production is a drop in the overall bucket of US energy. He said that when averaged out, the Montana totals accounted for less than one hour of annual US oil and gas consumption. Abercrombie did not dispute Horwitt's numbers, but disagreed about their importance.
"We don't supply all of the bread for the United States, but we still grow grain," Abercrombie noted. "We don't supply all of the burgers for Burger King, but we still raise cattle. Montana supplies an important part of the total amount of gas and oil that are consumed."

Since 1982, 33.2 mm acres of land in Wyoming have been offered up for lease, according to the report. Between 1989 and 2003, those lands were used to produce 295.1 mm barrels of oil and 4.5 tcf of gas, according to the report. Abercrombie and Rehberg said they believed the report was a politically motivated and intended to hurt President Bush's bid for re-election.

"We know there is an effort to attack the Bush administration on its energy policy," Abercrombie said. "That has been the hue and cry since he entered office."

Horwitt noted that because of its tax exempt status, the Environmental Working Group is not permitted to engage in political activities.

"We are not endorsing a candidate,

" Horwitt said. "We do not take positions on political races."

Horwitt did criticized President Bush's energy policy and praised former Democratic President Bill Clinton.
"We have seen a recent emphasis on oil and gas drilling that we hadn't seen under the past administration," Horwitt said. "We'd like to see a policy change. We'd like to see a more balanced approach."

Source: Casper Star-Tribune