US Congress Faces Big Push on Offshore Drilling
US: September 8, 2008
WASHINGTON - America's pain at the gasoline pump has been years in the
making, but there will be a big push in Congress next week, when lawmakers
return from summer break, to fix the problem by expanding offshore oil
drilling.
Gasoline prices, down sharply since July, remain high by historical
standards, a major issue in the presidential election. Allowing more
offshore drilling is seen as the solution by many Americans and politicians.
"Drill, baby, drill!" was the chant from the crowd at this week's Republican
National Convention.
When they left for August recess, lawmakers were in a stalemate over
Congress' offshore drilling moratorium, with Republicans seeking to lift it
and Democrats wanting to keep the ban.
Democratic leaders softened their position during the break, after their
party's presidential nominee Barack Obama changed his position. Democratic
leaders now say they will have a vote on opening additional offshore areas
to drilling as part of a larger energy package.
Republican presidential challenger John McCain also reversed his earlier
stand against offshore drilling, but he wants more tracts open to energy
exploration than Obama does.
In the wake of Hurricane Gustav, which still has most oil production shut
down in the Gulf of Mexico, President George W. Bush urged Congress to
expand drilling offshore.
"It ought to cause the Congress to step up their need to address our
dependence on foreign oil, and one place to do so is to give us a chance to
explore in environmentally friendly ways on the (offshore) Outer Continental
Shelf," Bush said.
White House press secretary Dana Perino told reporters on Friday that the
administration wants "a deal on energy" from Congress. The clock is ticking
as lawmakers plan to adjourn at the end of September to campaign for the
November election.
House Speaker Nancy Pelosi said this week Democrats will offer broad energy
legislation that opens some offshore areas to drilling "without taxpayer
subsidies to Big Oil."
Sixteen senators are pushing compromise legislation that allows drilling 50
miles off the coasts of Georgia, North and South Carolina and Virginia,
while providing billions of dollars for alternative energy and conservation
efforts by ending tax breaks for oil companies.
Senate Majority Leader Harry Reid has called the proposal a step in the
right direction and says he will push a comprehensive package that includes
limited offshore drilling.
A Reid spokesman said it was still unclear if the energy bill would stand on
its own or be part of legislation that seeks to rein in excessive energy
market speculation.
The compromise plan faces strong opposition from many Republicans, who are
against raising oil company taxes, want few offshore drilling restrictions
and seek oil exploration in Alaska's Arctic National Wildlife Refuge.
The Senate will hold a national energy summit next Friday to consider the
various legislative fixes, and then Reid will try to bring a proposal to the
Senate floor for a vote the following week, his spokesman said.
Perino said the president wants an energy bill that allows more offshore
drilling, develops oil shale fields in the West and extends tax credits for
renewable energy sources.
Perino would not say whether the White House would oppose the legislation if
it ended tax breaks for big oil firms. But she said the bill should not
become a "Christmas Tree" loaded down with lots proposals the administration
could not support.
Red Cavaney, president of the American Petroleum Institute, told Reuters he
did not think lawmakers would break their deadlock and pass an energy bill.
"I don't think it's realistic," he said. (additional reporting by Richard
Cowan in Washington)
Story by Tom Doggett and Ayesha Rascoe
REUTERS NEWS SERVICE
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