Goodlatte reintroduces legislation to open Va's OCS for oil and gas exploration

On Tuesday Representatives Bob Goodlatte reintroduced the “Virginia Access to Energy Act.” This important legislation allows for the exploration of natural gas and crude oil in Virginia’s waters of the Outer Continental Shelf (OCS). The legislation requires the Department of Interior, at the request of Virginia’s governor, to proceed with the Virginia lease sale no later than one year after passage of this legislation.

For many years the Commonwealth of Virginia has seriously been considering the potential positive impact that OCS development off Virginia’s coast would have on the Commonwealth. In fact, there has been wide support for environmentally responsible energy production by the Governor of Virginia, the Virginia General Assembly and by many local governments in the Commonwealth.

“Every day, folks across Virginia and the nation are confronted with the rising cost of energy, from the cost at the pump to soaring electric bills,” said Congressman Goodlatte. “I believe that Virginia should have every tool available to access its energy supplies. The ‘Virginia Access to Energy Act’ will create a path for Virginia to become ‘the Energy Capital of the East Coast.’”

It has been estimated by the U.S. Department of Interior’s Minerals Management Service that Virginia’s OCS has 130 million barrels of recoverable oil and 1.14 trillion cubic feet of recoverable natural gas. This translates into a significant boost to the economy of the Commonwealth of Virginia. In fact, some estimates have shown that development of Virginia’s OCS will create over 2,500 full-time equivalent positions on an annual basis, induce capital investment of $7.8 billion, yield nearly $645 million in direct and indirect payroll, and result in over $270 million in state and local taxes.

“There is a clear link between our willingness to tap American energy resources with job creation and national security,” said Congressman Scott Rigell, a lead cosponsor of the Virginia Access to Energy Act. “It is essential that we move forward with a comprehensive strategy that provides energy independence and I commend Congressman Goodlatte for introducing this legislation.”

The “Virginia Access to Energy Act” authorizes that all revenue generated from extraction of these resources may be shared evenly with the state and federal government, with the federal share going to reduce to the national debt. The Commonwealth’s share will be used to fund various state projects at the discretion of the state government.


Representatives Rob Wittman (VA-1), Scott Rigell (VA-2), Randy Forbes (VA-4), Robert Hurt (VA-5), Morgan Griffith (VA-9), and Frank Wolf (VA-10) joined Rep. Goodlatte as original cosponsors of the legislation, which has been referred to the House Committee on Natural Resources for further consideration.

Goodlatte continued, “Virginians understand that a major component in lessening energy costs is to produce more energy. In addition to helping us become energy independent, this legislation will help create thousands of jobs for Virginians and infuse the Commonwealth with new capital growth.”

To move America toward energy independence we need a comprehensive and strategic plan that increases the supply, security and diversity of American energy, promotes conservation and puts real alternative fuel sources in the hands of consumers to lower costs. We must lift the moratorium on drilling along the Outer Continental Shelf and open the Arctic National Wildlife Refuge for drilling, potentially producing nearly a million barrels of oil a day. We must diversify our energy supplies with alternative sources, including renewable fuels and wind, solar and hydrogen power. But we must do so without the government mandates and subsidies that are today driving up the cost of food and animal feed due to producing ethanol from corn. We should develop a renewable policy where the government incentivizes the development of new technologies but does not mandate the use of any particular fuel like corn-based ethanol which drives up food costs for consumers. Finally we should encourage the production of more nuclear power which provides CO2 emission-free energy.

Gov. Bob McDonnell signs HB 787 & HB 756 ... offshore drilling

Governor McDonnell signs HB787 and HB756, legislation to allow for offshore oil and natural gas exploration, production and development as well as allocate 80% of future offshore royalties and revenues to transportation and the remaining 20% to the Virginia Coastal Energy Research Consortium.
Wednesday, March 10, 2010

Other attendees included (L to R):
1st Row: Secretary of Natural Resources Doug Domenech, Lieutenant Governor Bill Bolling, Governor Bob McDonnell, Delegate Ron Villanueva, Delegate Chris Stolle, Senator John Watkins

2nd Row: Delegate Matthew James, Delegate Onzlee Ware, Delegate Charles Poindexter, Delegate Barbara Comstock

Photo courtesy of Michaele White, Governor’s Photographer

Virginia ready for offshore drilling

Energy independence is essential to the United States, and Virginia has taken the lead by moving a step closer to offshore drilling:

The Commonwealth of Virginia has signaled that it's ready for offshore energy development.

This week the state Senate passed a proposal that provides a roadmap for the allocation of offshore energy royalties and revenues, devoting 70 percent to transportation, 20 percent to alternative energy research and 10 percent to local governments.

After the Senate voted 21 to 19 to approve the plan, Gov. Robert F. McDonnell said, "There is bipartisan consensus on this issue," adding, "Offshore energy development has the support of this administration, the Democratic state Senate, the Republican House of Delegates, and U.S. Sens. Mark Warner (D) and Jim Webb (D)."

Drill here, drill now.

McDonnell calls for offshore drilling

“... 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.” -- Virginia Gov.-elect Bob McDonnell

This is following through on a way to make Virginia energy independent.

Virginia Governor-elect Bob McDonnell expressed his continued strong support of offshore energy exploration and development off the coast of Virginia in a letter sent to United States Secretary of the Interior Ken Salazar this past Wednesday. In the letter, McDonnell cautioned against any further delay in the Virginia offshore lease sale scheduled for 2011, and presented the Secretary with the position of his incoming Administration on the issue. The text of the Governor-elect’s full letter is below.

December 23, 2009

The Honorable Ken Salazar
Secretary of the Interior
Department of the Interior
1849 C Street, N.W.
Washington DC 20240

Dear Secretary Salazar,

Last month I had the honor of being elected Governor of Virginia commencing January 16, 2010. A key priority for us here in Virginia is the development of the full range of energy resources, both traditional and renewable, to foster energy independence, national security and economic development.

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. 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.

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.

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. The study also estimated that there could be up to 500 million barrels of oil in this lease area – enough to fuel all four million cars in Virginia for more than four years.

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

Chris Saxman lauded in Gingrich speech for "Drill Here, Drill Now, Pay Less"

Del. Chris Saxman (R-20th House District) has been a proponent for drilling off the coast of Virginia since 2004 in an effort to make the U.S. energy independent.

On April 24, 2009, former Speaker of the House Newt Gingrich addressed a House Energy Commerce subcommittee in which he lauded Del. Saxman for his stand on drilling off the coast. In his remarks that were carried on Real Clear Politics, Mr. Gingrich testified about the American Clean Energy and Security Act of 2009.

In the midst of ideas and concerns about energy, Mr. Gingrich addressed the legislative work of Del. Saxman:

Create public/private partnerships in coastal states to fast track the ability of oil and natural gas companies to develop offshore oil and gas resources. If Congress were to lift the ban on offshore oil and gas development (or at least grant coastal states the right to develop the resources with a plan to share revenue with them), states would move swiftly to set up partnerships that will maximize the best use of oil and gas revenues.

Efforts in Virginia provide a good example. In 2004, two Virginia legislators, Delegate Chris Saxman and Senator Frank Wagner, learned that Virginia manufacturers were warning of the rising costs of energy because of tightening energy supplies. Once they discovered that oil and gas resources exist off Virginia's shores, and that the state could experience rapid economic development from the actual business of energy exploration and development, Saxman and Wagner immediately designed legislation that would have Virginia petition the federal government for permits to drill offshore. In addition, the legislation specified that a significant portion of oil and gas royalties, state fees, and licenses collected by the state would go to improve Virginia's transportation infrastructure, clean up the Chesapeake Bay, and invest in technologies related to new energy production.

The economic potential for Virginia is significant. The oil and natural gas revenue estimated to accrue to Virginia is $13.53 billion dollars over thirty years, or $451 million annually. This is a conservative estimate that could increase with technological advances.

But these are not all the economic benefits that Virginia would reap. In just the Hampton Roads area near Norfolk, it is estimated -- based on experience with the oil and gas industry in Nova Scotia and Louisiana -- that oil and natural gas development would result in around $8 billion in capital investment and 2,600 new, high paying jobs. These new jobs would have an estimated payroll close to $650 million annually. Virginia would thus see $271 million more flow into the state treasury in the form of state and local taxes as a result of this increased economic activity.

This new tax revenue could then be used to fund transportation projects in the Hampton Roads area and throughout the state.

Imagine funding new roads, cleaning up the environment, and making investments in basic research and development science to promote new energy sources - all without raising taxes. How many coastal states besides Virginia would like to achieve that combination of benefits? Coastal states could lower energy costs for their residents as well as the energy costs of fellow citizens across the country, while relieving congestion and cleaning up the environment.

Read Speaker Gingrich's entire remarks here.

Bill Bolling supports offshore drilling for oil and gas

Lt. Governor Bill Bolling continues to back offshore drilling for oil and gas which would bring energy independence to America but also billions of dollars and jobs to the Commonwealth.

Today's Richmond Times-Dispatch writes about an energy forum held Tuesday that was attended by the Lt. Governor who said:

"More energy equals more jobs for Virginia," Republican Lt. Gov. Bill Bolling said. "That should be priority No. 1 for everybody across the commonwealth of Virginia."

Read the article for more reasons why drilling offshore is a good thing for Virginia and America.