Elections matter; new VA Governor seeks offshore gas and oil production
Posted December 30, 2009 at 5:57 am 
Filed in: This morning’s WaPo reports (http://www.washingtonpost.com/wp-dyn/content/article/2009/12/29/AR2009122902874.html?hpid=sec-business) on a Christmas Eve-eve letter that Virginia Governor-elect Bob McDonnell sent to U.S. Interior Secretary Ken Salazar, asking him to get on with the business of approving natural gas and oil leasing off Virginia’s coast. The Post excerpts from the letter, but doesn’t provide a link to it. For those interested, the full letter can be found at the Virginia political blog site “Bearing Drift: Virginia Politics on Demand” (http://bearingdrift.com/2009/12/29/mcdonnell-no-delay-in-virginia-offshore-energy-exploration-and-development/) and we will liberally excerpt from it below.
The Post’s piece notes, without explanation, that outgoing Governor Tim Kaine “sent his own letter to Salazar earlier this year asking for a delay in drilling off the Virginia coast.” It’s difficult to understand the rationale for further delay since, as Gov-elect McDonnell notes in his missive, more “than fifteen months have passed since the United States Congress allowed the federal moratorium on exploration and development of oil and natural gas resources off the Atlantic Coast to expire, and President Bush repealed a similar executive order banning such action.” The resounding winner of Virginia’s gubernatorial election, who campaigned on this very issue, then goes on to write:
“This cleared the way for Virginia to be the first state on the Atlantic seaboard to explore and drill beginning in 2011. Virginia is eager to get started. Nearly a year ago the public comment period for the potential lease sale offshore Virginia (Lease Sale 220) ended. Unfortunately it appears that virtually no progress has been made at the federal level to get this process rolling.”
One wonders what the public comment period yielded. Governor-elect McDonnell’s victory, following a strong stand in favor of responsible off-shore energy development, is consistent with all national and regional polling on the issue. It is fairly clear that, outside of some extremists, the vast majority of the American public wants officialdom to allow for the development of our own energy resources. Although there are probably a fair number of comments in opposition to exploration, it is more likely that the weight of the comments reflects public support for energy development.
Yesterday’s posting in this space was entitled discussed Russia’s moves on energy security, and previous postings have highlighted China’s. It’s ironic that those manifestly undemocratic societies seem to do a better job of respecting the public’s desire for energy security than does ours.
Here in the good old USA, we get enviromental extremists either driving policy or using the NEPA EIS process and other NIMBY tools to keep us energy insecure. It’s then up to a duly elected governor to play “Mother, may I?” with the Secretary of Interior. More from McDonnell’s letter:
“I am requesting that Virginia remain in the current five-year plan and that the federal administrative process move forward with Lease Sale 220 immediately. Any effort to remove or delay Virginia’s participation in the lease sale would significantly hamper our efforts to create jobs, eliminate much-needed new revenue, and undermine support for President Obama’s stated commitment to make the United States more energy secure.”
Nice touch, that — readers should remember that energy security was one of the few items during the 2008 presidential campaign that both candidates supported. They knew then, and should keep in mind now, that a desire for energy security unites the American people.
Most expect Congress and the Administration to “focus like a laser beam” on jobs in 2010, keeping in mind the mantra from the last two-term Democratic president: “It’s the economy, stupid.” Expect to see the already-expressed ”green jobs” theme get even more play as President Obama tries to jumpstart the climate change debate by talking up the new jobs that will be created from the imposition of a carbon pricing scheme. Let’s hope policymakers bear in mind that enhancing energy security is doubly good for the economy, as McDonnell notes:
“The opportunity to explore and develop oil and natural gas resources off the coast of Virginia, miles out of sight from our beaches in an environmentally sound manner, is timely for both our nation and our Commonwealth. Like every other state, Virginia is struggling with the high unemployment that accompanies the current tough economic environment. Some parts of our state have an unemployment rate as high as 19 percent. Additionally, America needs secure and diverse energy sources that do not leave us dependent on foreign governments adverse to our national interests.
A 2005 study by a former president at Old Dominion University forecast that offshore natural gas production alone off of the Atlantic coast near Virginia would, over a 10-year period, likely create at least 2,578 new jobs, induce capital investment of $7.84 billion, yield $644 million in direct and indirect payroll, and result in $271 million in state and local taxes.”
Creating jobs and generating revenue while enhancing our energy security — sounds like a fine New Year’s resolution. For those who are interested, the rest of Gov-elect McDonnell’s letter is below. Happy New Year!
“These economic projections, combined with tremendous technological advancements that have transformed the offshore oil and natural gas industry and make exploration and development environmentally sound, make it clear that there is no reasonable basis for further delays in beginning the leasing process. The Gulf States have been safely exploring and drilling for oil and natural gas for years, and have done so safely despite hurricanes passing over the platforms in the Gulf.
“Additionally, it is critically important as a matter of equity that the Commonwealth receive the same royalties, rentals, and bonus bid payments as do all the other states which currently allow energy exploration and production off of their coasts. I implore you to work with Congressional leaders, as I will, for passage of legislation to ensure that Virginia participates in a fair and equitable distribution of future offshore revenues.
“Offshore energy exploration and production will be a priority in my administration. I would like to work with you and the President to make Virginia an international leader in offshore energy exploration and production on the Atlantic coast. It is important for both our Commonwealth and our country. We also intend to aggressively pursue offshore renewable energy sources such as wind farms, and will be asking for your assistance at that appropriate time.
“I ask you today to do everything in your power to ensure Lease Sale 220 stays on schedule, including the prompt completion of an environmental impact statement and the processing of all other administrative steps necessary for holding the lease sale in 2011. I am aware of several major energy companies that are ready to bid for the leasehold rights, generating hundreds of millions of dollars for the state and federal governments. Virginia stands ready to help address America’s energy needs while creating badly needed good-paying jobs for our citizens.
“Mr. Secretary, it is time to develop our offshore energy resources to create new jobs and provide necessary new revenue for schools, roads, public safety and alternative energy research and development in Virginia. I respectfully request that you direct the U.S. Minerals Management Service to expedite its preparatory work in support of the lease sale in 2011. The leasing process should not be further delayed.
“Thank you for your attention to this critical matter. I am committed to working with you as we move forward with this tremendous opportunity for the Commonwealth of Virginia and the United States of America.
“With warm personal regards, I remain
“Sincerely,
Robert F. McDonnell”
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