Yesterday, we looked at the time it takes to produce oil on federal lands, now let’s look at offshore.  As you can see from the chart below, just like on land, it takes time.  In general, from purchase of the lease to first production can take anywhere from 7 to 10 years in areas that have existing infrastructure. In this context, the timeline for OCS exploration and production can include:

• Six months to a year for MMS administration and execution of lease sales in unleased areas.
• One year for preliminary geological investigation and selection of areas of interest for additional seismic data acquisition.
• One year to two years to acquire and to process 3D (and new wide azimuth) seismic data, and to identify drillable prospects from this data.
• As much as a year or more to... more »

As the ranking Republican on the House Natural Resources Committee, Rep. Doc Hastings (R-WA) is in a position to closely observe and act on the administration's proposed energy policies.

Today in an op-ed published in The Washington Times, he provides an explanation for what he calls the administration's "mixed signals" on offshore energy production.

Hasting writes:

"Sen. Obama opposed it. Candidate Obama changed his mind when gas prices soared. President Obama stalled efforts to expand it, but then seemingly promoted it in this year's State of the Union address. Understandably, his ever-changing position has left Americans confused and frustrated."

Now Hastings believes he has seen the administration's true agenda. He says the president's 2011 budget proposal shows that government reve... more »

Today, the Senate's Energy and Natural Resources Committee held a hearing concerning environmental stewardship policies related to offshore energy production. (Watch the archive Webcast of the hearing).

Two of the witnesses--Shell President Marvin Odum and David Rainey, vice president for Gulf of Mexico exploration at BP America--discussed the oil and gas sector's strong environmental record and said that additional exploration and development was necessary to bring in needed much-needed supplies, reduce U.S. imports, create jobs and generate government revenues.

Advanced offshore technology, such as 3-D seismic surveys, has revolutionized the oil and natural gas exploration process, allowing the industry to have "eyes" underground. This technology improves the industry's ability to locate... more »

Yesterday, Interior Secretary Ken Salazar announced that a second round of oil shale research and development on leases with vastly diminished potential commercial acreage will resume.

Secretary Salazar's decision is a positive step in the process of developing the innovation and technology needed to bring production from the nation's vast oil shale resources to American consumers.

However, we are concerned with some of the new second-round lease terms--specifically the decision to reduce by 87 percent the total potential commercial lease size. Slashing the size of the potential commercial lease diminishes the incentives for investment and ignores the enormous up-front costs and risks undertaken to develop these technologically complex resources.

Oil shale deposits in the Green River forma... more »

Another voice in the news can be added to the list of those favoring increased access to our nation's offshore oil and natural gas resources. Last week, a Florida Sun-Sentinel op-ed authored by Dave Mica, executive director of the Florida Petroleum Council, discussed the new jobs, increased revenues, and energy security that offshore energy development could bring to the nation and the state of Florida--all with minimal impact to the surrounding environment.

Mica says:

"Through advanced technology, the oil and natural gas industry has reduced its environmental footprint, minimizing the impact on ecosystems and wildlife. The industry finds, develops and delivers oil and natural gas while leaving the Earth nearly untouched -- a fact all Americans need to remember. With these technological de... more »