IADC Applauds Senators' Leadership in Opposing Federal Drilling Moratorium

/PRNewswire/ -- The International Association of Drilling Contractors (IADC) applauds the leadership of three United States Senators: David Vitter (Louisiana), John Cornyn (Texas), and Roger Wicker (Mississippi), who are opposing the federal moratorium on offshore permitting and drilling activities announced on July 12 by Secretary of the Interior Ken Salazar. Last week the three Gulf Coast senators sponsored legislation (S. 3588) to lift the offshore drilling and permitting moratorium for companies that have complied with the new safety and inspection requirements issued by the Department of the Interior.


"The men and women whose livelihoods depend on the offshore oil and gas exploration and production industry in the Gulf of Mexico deeply appreciate the efforts of our legislators to lift the drilling moratorium," said IADC President Dr. Lee Hunt. "Industry representatives have communicated to the Interior Department and Congress our industry's strong commitment to rigorous requirements for well design, enhanced training, and adoption of safety case requirements for Mobile Offshore Drilling Units (MODUs). We are dismayed by the continued blanket suspension of deepwater drilling in the U.S. Gulf of Mexico. Lifting the moratorium is critical to tens of thousands of jobs in the deepwater industry and to the oil and gas service sector in the Gulf Coast region and throughout the country."

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Outdated Regulations Slow Oil, Gas Drilling In Tennessee

(BUSINESS WIRE)--High crude oil and natural gas prices, new drilling technology and the state's Chattanooga Shale could combine to turn Tennessee into a significant oil and gas producing state, if enforcement of outdated regulations doesn't slow or even stop oil and gas exploration, said one industry official.

"We are currently producing crude oil and natural gas in 11 Tennessee counties, and there is potential for oil and gas producing from more than half of the state's counties," explained Scott Gilbert, President, Tennessee Oil & Gas Association (TOGA).

"Horizontal drilling in the Chattanooga Shale is a major factor in the growth of oil and gas development through a good portion of the state," said Scott. "And high crude oil and natural gas prices is another contributing factor.

"This could all come to a halt unless we can convince the state's Oil & Gas Board to make the kind of changes needed in the state's oil and gas regulations to stimulate oil and gas development rather than hold it back," he added.

Scott noted that many of the oil and gas regulations were written 30 or more years ago, when oil was less than $10 a barrel and natural gas was just flared into the atmosphere. Today oil prices are nearly $100 and natural gas is selling for $8 or more an mcf.

"Thirty years ago, if a well didn't flow oil when it was drilled in, it was considered a dry hole. Fifty years ago, all too often dry holes were not plugged and were just open. Thus, the regulation that require either producing or plugging all wells.

"With today's technology, we can turn many old wells that appear to be dry into a substantial oil or gas producer. But if the state forces old wells to be plugged, they can seldom, if ever be reopened," Gilbert noted.

"In addition, it often takes months or even years to drill enough gas wells to justify a pipeline. If we are forced, by the Water Pollution Control Division, to plug a well within six months, there would be very few wells drilled for gas, and certainly no wildcat wells where the operator may have to wait for many years for a pipeline," he added.

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Glenn Beck, Sarah Palin on Energy, Gas, Drilling

New Survey Finds Georgians Support Increased Access to Domestic Oil and Natural Gas Resources

PRNewswire-USNewswire/ -- Georgians are concerned about the price of gasoline and the majority of them support increased access to domestic oil and natural gas resources, a new survey finds.

"This research confirms what every recent poll has shown. Georgians, like Americans everywhere, are feeling the crush of high gasoline costs and support increasing domestic supplies of oil and natural gas," said Ric Cobb, executive director of the Georgia Petroleum Council (GPC). "Sadly, some in Congress are ignoring this groundswell and blocking a balanced energy policy that includes development of America's vast natural resources, along with more conservation, energy efficiency and increased supplies of all sources of energy."

The poll was conducted by telephone between July 10 and July 27, 2008 by Harris Interactive and commissioned by API. The survey of 501 registered Georgia voters who are likely to vote in the upcoming presidential election found 66 percent of those surveyed said they somewhat or strongly support increased access to domestic oil and natural gas resources. Only 23 percent of respondents said they opposed increased access. An overwhelming 97 percent said they are somewhat or very concerned about the price of gasoline.

"America's oil and natural gas companies are ready to work with government at all levels to enact a comprehensive energy plan that includes increasing domestic supplies while protecting our environment," said Cobb. "It's time for Congress to lift the ban on offshore drilling."

Currently, Congress is blocking the exploration and development of abundant oil and natural gas reserves beneath non-park federal lands and coastal waters. Advanced technology means America's oil and natural gas companies can efficiently explore for these resources while protecting the environment. Based on federal government data, these resources could provide enough oil to fuel more than 65 million cars for 60 years and enough natural gas to heat 60 million homes for 160 years.

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