BACKGROUNDER: Why the OCS is Critical to American Energy Independence
Western Business Roundtable
The U.S. Outer Continental Shelf:�
Supporting More Affordable and Clean American Energy
Americans Deserve The Benefits of American Energy From Our Oceans
The Issue
Currently, the federal government in Washington, D.C. prevents America from accessing some of its most promising homegrown energy resources. The result: an unnecessary continuation of our nation's dependence on foreign countries for our energy needs.
Currently, the United States imports more than 60% of its oil from abroad; this while an enormous and largely untapped domestic energy resource can be found on publicly owned lands in the oceans off the U.S. – known as the Outer Continental Shelf (OCS) – if federal laws and regulations are changed to allow responsible access.
The federal government owns over two billion acres of lands – an area larger than the land mass of all other nations on earth, except for Russia and Canada. Of these lands, only about four percent have been leased for energy production. Clearly, we do not suffer from a lack of domestic energy resources. What hobbles us is the legacy of decades of land use management laws that have limited access to our own resources – both onshore and off. In short, the federal government has placed an embargo on our national energy supplies.
The OCS is a stark example: the Mineral Management Service (MMS) estimates the OCS contains approximately 450 trillion cubic feet of recoverable natural gas resources and 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. Put another way: it is enough oil to replace current Persian Gulf imports for nearly 60 years. Over 80 percent of the nation’s oil and natural gas resources on the OCS are completely off -limits to energy exploration and production due to Congressional moratoria and/or administrative withdrawals, despite a proven record of safety and environmental responsibility.
We were hopeful that progress was being made in 2008, when then-President Bush and Congress lifted their moratoria on exploration in the OCS. In response, MMS developed new five-year leasing plan that would allow for production in these newly-available areas. However, on February 10, 2009, Secretary of the Interior Ken Salazar announced that the MMS plan would be delayed. Those delays are bad news for the American people.
Why This Issue Matters To You
The environmentally-sensitive development of our offshore resources can be a “win” for the nation in a number of ways: dramatically improving energy security; diversifying our domestic energy supply; adding thousands of well-paying American jobs; helping with our balance of payments and economic growth during times of recession by bringing billions of dollars into the U.S. Treasury instead of sending them abroad.
OCS can play a key role in improving domestic energy security over the short and medium-terms. Given the tough economic situation, it is more important than ever that the federal government allow access to all offshore oil and natural gas supplies as soon as all necessary environmental protections have been put in place. Federal offshore waters hold the greatest potential for finding and bringing new domestic energy resources to market in the next five to 10 years.
OCS can provide tremendous “stimulus” to the nation’s economy, create thousands of jobs and help off-set growing federal deficits.
Because the OCS offers such a significant energy resource for the nation, its utilization can positively impact a number of pressing problems:
The MMS Plan, if implemented on the 2010-2015 timeline, can do much to stimulate the economy, particularly in the hard-hit coastal regions. A recent ICF International study found that developing off-limits onshore and offshore federal oil and natural gas could create 160,000 new jobs and generate $1.7 trillion in government revenue.
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Injecting of significant new domestic resources into the pipeline can contain price volatility for consumers, thus fostering stability in an otherwise fragile economy.
The plan will help offset huge federal and state deficit spending. Royalties from OCS leases can serve as a robust federal revenue source. In 2008, the federal government collected over $23 billion from the energy industry, which was distributed to state, local, Tribal and federal accounts.
The plan will help with our balance of payments abroad.
What You Can Do To Help
Let Washington know you support reasonable access to America’s onshore and offshore energy resources, which will help lower energy prices and reduce our reliance of foreign countries. Tell policymakers to stop politicizing America's national and economic security by instituting the new MMS Five-Year Plan now.�
