Chamber Welcomes Administration Lifting Ban on Energy Exploration in Outer Continental Shelf

The Ball is Now in Congress' Court

WASHINGTON, D.C.—The U.S. Chamber of Commerce today welcomed President George W. Bush's plan to lift the executive ban on oil exploration in the Outer Continental Shelf (OCS) and for calling on Congress to lift its ban saying it will increase opportunities for domestic energy production and help alleviate high gas prices.

"With gas now over $4 a gallon, Congress and the administration should be doing everything in its power to incentivize and produce energy," said Bruce Josten, U.S. Chamber executive vice president for Government Affairs. "Lifting this decades-old OCS ban is important in meeting the energy needs of a growing nation, breaking our dependence on foreign oil, and reducing prices."

The National Petroleum Council estimates that the banned OCS areas in the lower 48 states contain roughly 18 billion barrels of oil and 76 trillion cubic feet of natural gas. However, this data is about 25 to 40 years old. Resources are estimated to be well beyond that amount. According to the Minerals Management Service, the OCS contained 420 trillion cubic feet of natural gas and more than 85 billion barrels of oil. That amount of natural gas would heat all residential homes for about 93 years, and the oil would fuel 82 million cars for 35 years.

The Chamber added that the OCS could produce a minimum of 1 million barrels of oil per day and reduce our dependence on Persian Gulf crude by about 40 percent. Assuming we only have the 18 billion barrels we know are in the OCS, that would still maintain the 40 percent reduction for about 50 years.

"The Chamber first called on Congress and the administration to lift the OCS ban in 1993 and has repeated this call to action every year since," said Josten. "Had the ban been lifted, we would have access to the vast supplies of oil and natural gas contained in these areas today," said Josten.

On Wednesday, U.S. Chamber of Commerce President and CEO Thomas J. Donohue, General James L. Jones (USMC, Ret.), president and CEO of the U.S. Chamber's Institute for 21st Century Energy, and a bipartisan group of former Cabinet, Congressional, national security, and business leaders will announce a comprehensive, common-sense energy solutions to increase domestic energy supplies, develop new technologies, improve critical infrastructure, and protect America's economic prosperity, national security, and the environment.

The U.S. Chamber 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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