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April 1st, 2010
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The President’s recent announcement to lift an existing ban on offshore drilling embodies a pragmatic political strategy to preempt criticism about high summer gas prices and recast the energy and climate debate. However, with criticism both from Republicans who don’t think it goes far enough, as well as environmentalists and the liberal wing of the Democratic Party, it remains to be seen whether the move will increase or actually reduce the number of votes for KGL in Congress. GR’s Thursday Insight analyzes the President’s energy gamble.

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GR INSIGHT

Obama to Open Offshore Areas to Oil Drilling for First Time

As he has done consistently throughout his political career, President Obama is once again using a position on energy policy – this time offshore domestic drilling – as a strategic tool to pragmatically move his agenda forward. With great fanfare, but little advance warning, President Obama announced Wednesday that he would lift an existing federal ban on offshore oil and gas drilling. The timing of the announcement was notable. Coming right on the heels of the big health care victory and at a time when Congress was in recess, the news indicates that the President and his team are using the health care victory to put energy back at the top of the agenda and establish it as a priority worthy of Presidential attention after many months on the back burner. In combination, Wednesday’s announcement shows a President who has gained political capital from his health care victory and acted swiftly to define the parameters of the debate on energy policy in advance of the introduction of the Kerry-Graham-Lieberman bill. While in recent months it seemed as if the President’s agenda on climate and energy was drifting, yesterday’s announcement shows that the Obama will not avoid tackling energy issues for the rest of his term.

Source: New York Times

Details on the Plan

Obama’s proposal would lift a federal ban on oil and gas drilling off the southern Atlantic coast, the eastern Gulf of Mexico, and the north shore of Alaska, the most significant statement the President has made on energy this year. At the same time, if individual tracts are deemed suitable for development by the Interior Department, they would be opened up to drilling, while the northern Atlantic coastline, the Pacific coastline, and much of southern Alaska would still be protected. (See here.) Under the Administration’s plan, the Interior Department will proceed with a lease sale for companies interested in drilling 50 miles off the Virginia coast before 2012.Leasing off the coasts of other mid-Atlantic and southeastern states would be authorized in Interior’s 2012-2017 program. The White House is also calling for the opening of a major swath of the eastern Gulf of Mexico, which is mostly off-limits under a 2006 Gulf drilling law. In addition, Obama announced two other initiatives to reduce oil imports: an agreement between the Pentagon and the USDA to use more biofuels in military vehicles and the purchase of thousands of hybrid vehicles for the federal motor pool.Obama said specifically that increased use of biofuels was critical to national security.

See full article here.

John Juech
01 April 2010

GR ANALYSIS
Nuclear
01 Apr 2010
Bioenergy
01 Apr 2010
Fossil Energy
01 Apr 2010
Climate Change
01 Apr 2010
Alternative Vehicles
01 Apr 2010
KEY READS
Water Risk Could Sink Investors
March 2010
World Resources Institute
Where the US Will Find Growth and Jobs
March 2010
McKinsey Quarterly

What New Offshore Drilling Will Yield
March 2010
Council on Foreign Relations
Who’s Winning the Clean Energy Race?
March 2010
Pew Charitable Trusts
SPECIAL TOPICS
New CAFE Standards
 
NAMES IN THE NEWS
Secretary of the Interior
Department of the Interior

Salazar has said the administration will no longer use the term "cap and trade" to describe climate change legislation.

Garten Rothkopf
1330 Connecticut Avenue, N.W. Suite 500
Washington, D.C. 20036 | phone: 202.457.7920

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