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THE DEEP OCEAN ENERGY RESOURCES ACT - DOER ACT
Background and Need:
The U.S. is more than 60 percent dependent on foreign sources of energy, twice as dependent today as we were just 30 years ago. This growing and dangerous dependence has resulted in the loss of hundreds of thousands of good American jobs, skyrocketing consumer prices, and vulnerabilities in our national security. Energy imports now make up ONE THIRD of America’s trade deficit.
Developing countries like China and India have placed unprecedented pressures on global demand as they scour the globe for energy supplies to fuel their rapidly growing economies. As a result, the margin between global supply and demand is smaller than ever, even smaller than the 1970’s, when oil disruptions rocked the U.S. and world economies. These demand increases and supply shortages mean higher prices for Americans.
America could improve the supply-demand imbalance and lower consumer prices by producing more of its own energy resources. But, believe it or not, federal government policies makes it illegal to do this at home, especially in places like the deep seas off our coasts – known as our Outer-Continental Shelf (OCS).
In fact, the United States is the only developed nation in the world that forbids safe energy production on its OCS, a fact that puts us at an economic and strategic disadvantage with foreign nations in the highly-competitive global economy.
In some cases, the U.S. is facing much-higher energy prices than other countries. Natural gas, for example, is as much at TEN times more expensive in the United States than it is in foreign nations. This fact alone has led to the loss of hundreds of thousands of high-paying American jobs, as natural gas-dependent factories are forced to close their doors and move overseas in search of more affordable energy.
Still, the U.S. Congress has not changed its policies to solve the problem. Because of 25 year-old bans on deep sea energy production, known as production moratoria, 85 percent of America’s Outer Continental Shelf (OCS) energy resources remain under the lock and key of the federal government.
According to the U.S. Minerals Management Service (MMS), America’s deep seas on the OCS contain 420 trillion cubic feet of natural gas (the U.S. consumes 23 TCF per year) and 86 billion barrels of oil (the U.S. imports 4.5 billion per year).
Even with all these energy resources, the U.S. sends more than $300 Billion (and countless American jobs) overseas every year for energy we can create at home.
The Bans that make it illegal for America to produce American energy:
Currently, two bans – or moratoriums – prevent the United States from producing its vast energy resources on the outer-continental shelf (OCS). Both are blanket, or one-size-fits-all, bans. They apply to waters starting from 3 miles off our shores, where State-owned waters end and federal waters begin, to waters just beyond 200 miles off the coasts.
The first ban is known as the Executive Moratorium. It is set to expire in 2011, but can be eliminated by the President at any time, without so-much as a vote in the Congress. The second, known as the Congressional Moratorium, comes in the form of an annual appropriations rider in Congress. It expires every year and must be renewed annually by a vote in the Congress. Neither have the force of permanent law.
Because energy is the lifeblood of America’s economic security, many have called for the complete repeal of the bans. While this would surely provide great access to energy resources for our economy, it would also leave America’s coastal states without any power over their coastlines beyond the 3-mile marker off their shores, a possibility unacceptable to many states that do not want energy production too close to their shores.
The DOER Act will help America become more energy self-sufficient
After a quarter century of one-size-fits-all bans that make it illegal to develop our own energy, the DOER Act establishes a common sense, flexible framework that will help free America from its dependence on foreign sources of energy and empower states to protect their coastlines at the same time.
In fact, for the first time ever, the DOER Act gives coastal states full and complete authority to restrict energy production to the deep seas 100 miles away from their shores.
This balanced, commonsense compromise will deliver the energy supplies America needs to lower prices for consumers and create hundreds of thousands of family-wage jobs. It will correct the federal government policies that have led to our dangerous dependence on foreign sources of energy.
The House Resources Committee approved the DOER Act this week with an overwhelmingly bipartisan vote of 29-9.How the DOER Act works:
The Deep Ocean Energy Resources (DOER) Act is designed to modernize a key aspect of the nation’s energy policy by allowing more of its massive energy resources to be produced in the deep seas on the outer-continental shelf (OCS).
It accomplishes this by granting coastal states permanent and unprecedented power to keep off-shore energy production 100 miles away from their coastlines, while enabling the U.S. to produce energy for Americans in the deep waters beyond 100 miles.
The DOER Act codifies the Executive Moratorium into permanent law for the first 50 miles from America’s coasts. Coastal states will then have the power of choice for the second 50 miles: they can allow natural gas production, oil production, both, or neither.
Many states will enjoy the security of having complete and permanent authority over the first 100 miles of their oceans. No longer will State Legislatures and citizens have to worry about the whims of Washington when it comes to decisions regarding ocean energy resources so close to their shores.
This is especially true for states that do wish to have production and constantly worry about the thread-thin nature of the current moratoriums (neither have the force of permanent law).
Others states will embrace the authority and deploy Others states will embrace the authority and deploy 21st century technology to allow safe production of energy resources, such as natural gas, somewhere within that 100 miles.
Either way, the result is a commonsense, flexible framework that balances the competing interests of different states and generates more energy for our economy at the same time.
Economic benefits of the DOER Act:
Energy is the lifeblood of every economy. Producing more of it leads to more good jobs, cheaper goods, lower fuel prices, and greater economic and national security.
The DOER Act will have the tremendous economic benefit of creating immediate demand for employees in the areas of petroleum geology, mineral exploration geology, economic geology, mining geology, petroleum geophysics, mining geophysics and geological engineering.
America’s resource-dependent manufacturing sectors have lost 5 million jobs in just over two decades because of high energy prices. While there are numerous economic causes for this trend, they all start with the simple principles associated with access to, and supplies of, the resources necessary to do business and create jobs in America.
The U.S. currently sends over $300 billion overseas every year to import energy we can produce here at home. This is why energy imports account for one-third of our annual trade deficit.
When we import energy, we export American jobs. In fact, the National Association of Manufacturers estimates that 3.1 million manufacturing jobs have been lost since 2000.
Resources fuel our economy. Without them, we can produce nothing. Restricting balanced access to resources in America is tantamount to Uncle Same cutting off his nose to spite his face.
Funds for States and Local Communities
When states produce energy for the nation from federal lands on shore, they split the revenues with the federal government. States choosing to produce energy in the deep seas off their coasts will benefit the same way under the DOER Act.
Funds shared with States and local communities may be spent for a number of purposes, including: education, transportation, reducing taxes, coastal and environmental restoration, energy infrastructure and projects, state seismic monitoring programs, alternative energy development, energy efficiency and conservation, hurricane and natural disaster insurance programs, other purposes, and any other purpose as determined by State law.
Educational Benefits of the DOER Act:
Much of the new technology used in oil and natural gas drilling requires advanced education. In order to provide for this need, the DOER Act dedicates federal funds to public universities in order to promote careers in the areas needed.
In addition, DOER Act funds research possibilities with the "Rigs to Reefs" policy, which has been a great benefit to marine biologists who have shown that the artificial reefs cultivate fish in danger of extinction.
Most importantly, the DOER Act establishes three separate funds for environmental protection and enhancement, education/job training and research and development for renewable energy development.
Revenues will also help fund Rural Schools.
See more on the DOER Act’s education initiatives here.
21st Century Technology makes deep sea energy production the safest in the world
The advanced environmental protection technologies outlined in this report were severely tested when Hurricanes Katrina and Rita roared through the heart of the Gulf of Mexico in 2005.
Almost 3000 offshore platforms were in the direct path of the hurricanes. Some experienced 5-6 hours of sustained winds of 170 miles per hour (mph) and gusts over 200 mph. Production was shut down, platforms were evacuated and production restarted without any loss of life and without any offshore spills.
A landmark report issued by the Clinton Administration in 1999, The Environmental Benefits of Advanced Oil and Gas Exploration and Production Technology, outlines the many ways in which ingenuity have made production and environmental protection go hand-in-hand.
The Environmental Benefits report outlines technology’s gifts to safety even when production takes place in National Wildlife Refuges, wetlands, and in the deep seas on our OCS.
The U.S. Minerals Management Service (MMS) reports that offshore operators have produced 4.7 billion barrels of oil with a spill rate of less than .001% since 1980. A National Academies report called "Oil in the Sea III" states that during the past decade, improved production technology and safety training of personnel has nearly eliminated spills. The greatest share (63%) continues to come from natural seeps.
Stringent regulatory oversight also helps maintain environmental performance. Offshore operators operate under 17 major permits and must follow 90 sets of federal regulations. Government oversight also applies to any associated pipelines or onshore facilities.
Short Key Points on the DOER Act
EMPOWERS STATES TO CONTROL COASTAL AREAS
PROVIDES EQUITABLE SHARING OF ENERGY RECEIPTS
PROVIDES ABUNDANT ENERGY TO AMERICA
CREATES HUNDREDS OF THOUSANDS OF NEW JOBS
PRESERVES HUNDREDS OF THOUSANDS OF EXISTING JOBS
ENHANCES AND PROTECTS NATURAL RESOURCES
EDUCATES AND TRAINS AMERICANS FOR HIGH-PAYING JOBS
PROMOTES RENEWABLE AND ALTERNATIVE ENERGY
PROTECTS MILITARY OPERATING AREAS
PROTECTS INTERESTS OF STATES THAT DON’T WANT ENERGY PRODUCTION NEAR THEIR COASTLINES
ENSURES THAT LESSEES PAY FAIR COMPENSATION TO THE TAXPAYERS