Posted on 09/20/2011 7:10:06 AM PDT by Broker
The feds have never authorized offshore drilling unless the state approved.
Look at CA. They did approve offshore drilling. The feds leased in federal waters and the state leased in state waters.
But because of the Santa Barbara spill, CA changed their mind and there was more drilling either in federal waters or state waters. All the previous well's platforms are still producing but here have been no new wells.
If Virgina wants to drill in state waters they can get all the royalty, but they won't because they want drilling 50 miles out because a blowout 50 mile from shore is not the same threat as a blowout 2 miles from shore.
Thanks, Ben. Excellent info.
That is a political decision, not a legal decision. They have the power to go forward regardless of whether the state approves or not. They can also disapprove or stop a state's desire to authorize drilling.
If Virgina wants to drill in state waters they can get all the royalty, but they won't because they want drilling 50 miles out because a blowout 50 mile from shore is not the same threat as a blowout 2 miles from shore.
The state can drill up to three nautical miles out without any approval from the feds, but they won't for political and geological reasons.
Many things have to be resolved before VA can move forward.
The seismology has to be done. The zoning, spacial planning has to be done. The clean energy standards have to established. Va's renewable standards have to be established. The new offshore regs have to be codified. The Navy has to input. The issue and details of royalty sharing which really transcends VA has to be resolved. The "beyond 125 mile" limit has to be reduced to "beyond 45 miles". What the oil companies want has to be determined.
What's the deal on the domestic supply versus the north American supply versus the south American supply versus the world supply.
In 2009 cap and trade was the focal point but while the House was dealing with that, the senate wrote an comprehensive energy bill which is now a guidebook. What happened in the gulf will influence what happens in the mid-atlantic.
Gasoline usage in the US has peaked and will continue to diminish. Natural gas that might be produced off of VA will have to compete with Marcellus gas.
Its all very complicated and it is all the more complicated because most of it depends on "acts of Congress".
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