Chamber Urges Minerals Management Service to Expand Scope of Oil and Gas Leasing Program

WASHINGTON, D.C.—The U.S. Chamber of Commerce filed comments today urging the U.S. Department of Interior Minerals Management Service (MMS) to consider the energy needs of the nation and allow drilling on the Outer Continental Shelf (OCS). The comments were filed in response to a 5-year planning process in which the MMS will designate areas in the OCS and the Gulf for potential energy development.

"Inclusion of these areas in the 5-year program is vital to the energy security of the nation," said William L. Kovacs, U.S. Chamber vice president. "It is foolish to continue to expect the rest of the world to supply us with energy when we will not develop our own resources."

Despite the escalating energy needs of the United States, and overwhelming public support for an expanded leasing program, the draft proposal released by MMS is inadequate and avoids a discussion of the energy needs of the nation, according to the Chamber. The lease sales in the proposal would tap into only a small portion of an area that contains an estimated 420 trillion cubic feet of natural gas and 85.8 billion barrels of oil, an amount that would satisfy all industrial and commercial natural gas needs for 30 years or 72 million homes for 60 years. The projected amount of oil would provide a 15-year supply of gasoline for 132 million cars and heating oil for 54 million homes.

Already, Congress and the Administration have declared a large portion of the OCS off-limits to oil and natural gas production. MMS not only takes most of these areas off the table for consideration, but has also omitted areas that are not under Congressional or presidential restrictions. For instance, the proposal omits more than half of an area known as Lease Sale Area 181, which is a 5.9 million acre area in the Gulf of Mexico known to have substantial oil and natural gas reserves.

"Like the U.S., all of the nations of the world need huge new supplies of energy and we cannot continue to ignore our domestic resources," said Kovacs. "If developed, these supplies would ensure that Americans have the affordable and reliable energy supply so critically needed to fuel economic growth and maintain our standard of living."

The U.S. Chamber of Commerce is the world's largest business federation, representing more than 3 million businesses and organizations of every size, sector, and region.

www.uschamber.com

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