September 18, 2008
Ms. Renee Orr
5-Year Program Manager
Minerals Management Service (MS-4010)
381 Elden Street
Herndon, Virginia 20170
RE: In Support of New 5-Year Program
Dear Ms. Orr:
The Resource Development Council (RDC) is writing to express its support for the immediate creation of a new Five-Year Outer Continental Self (OCS) leasing program for 2010-2015. Improved and accelerated access to offshore waters in an environmentally-sensitive way could significantly improve the nation’s domestic energy situation and provide economic stimulus. Beginning the process now could give the new administration in Washington D.C., a two-year head start in expanding offshore energy production at a time when high energy prices pose a serious threat to our economy.
RDC is an Alaskan-based, non-profit, business association comprised of individuals and companies from Alaska’s oil and gas, mining, timber, tourism and fisheries industries. Our membership also includes Native regional and village corporations, local governments, organized labor and industry support firms. RDC’s mission is to help grow Alaska’s economy through the responsible development of natural resources.
RDC supports expanded OCS development because it is confident operations can occur safely and with little impact to the environment. OCS development has an outstanding safety and environmental record spanning decades. Development has coexisted with other industries, including fishing in Cook Inlet, the North Sea and the Gulf of Mexico.
Moreover, OCS production would provide many benefits, including new jobs in rural and urban areas, additional tax and royalty income to the states, new local sources of fuel and energy, and improved search and rescue operations.
It is crucial that the government move diligently to increase and encourage oil and gas production given today’s supply and price situation. With sharply higher energy prices, U.S. citizens need secure domestically-produced oil and natural gas to ensure our future energy security, maintain reasonable energy prices to power our vehicles, homes, schools and businesses, as well as help the farming and manufacturing industries remain competitive. Equally important, given recent hurricanes in the Gulf Coast, it is necessary the U.S. diversify its oil and gas production to other Federal waters.
With energy prices threatening the national economy and the standard of living for many Americans, we must develop our vast untapped domestic energy resources. Most of the nation’s oil and gas is located offshore, an estimated 86 billion barrels of oil and 420 trillion cubic feet of natural gas. Yet 86 percent of the OCS is off limits to development. This is not only unacceptable, it is appalling.
Allowing appropriate access to these offshore resources is in our national interest as a means of improving energy security, diversifying supply, enhancing economic development and generating local, state and federal revenue.
A new Five-Year Plan and congressional action to lift restrictions on offshore development are sensible steps forward toward the development of a comprehensive energy policy that utilizes a broad range of energy sources to secure our energy future. Such an energy policy must be based on reality – one that recognizes new oil and gas production will continue to be absolutely necessary in the foreseeable future to meet energy demand until alternatives and renewable sources become available on a broad scale.
While renewable energy will make up a growing part of the U.S. energy portfolio, they will not significantly reduce our reliance on foreign sources of oil in the near term, given they are projected to account for only 12 percent of our energy by 2030. The health of our economy and our national security will require utilization of both conventional and unconventional energy sources. No single approach is enough as we cannot drill our way to energy independence, nor can we conserve our way. America needs to pursue various strategies to secure its future energy requirements. New domestic oil and gas production is actually the bridge to new energy sources. New production will buy us the time we need to develop alternative and renewable energy sources that will eventually break our reliance on foreign oil – forever.
Any new Five-Year Plan must include revenue-sharing from the OCS with local communities in Alaska and elsewhere to help address local impacts. Early consultation and conflict avoidance mechanisms should also be included in the plan. New offshore development should occur within a strong regulatory regime. Any leasing plan should require state-of-the-art oil spill response and consider mitigation measures to minimize impacts to other resource industries, traditional lifestyles and the environment. Reasonable stipulations to protect scientifically-verified, environmentally-sensitive areas should be incorporated in the plan.
In closing, I urge the MMS to move immediately forward with a new Five-Year Plan and expand access to the OCS off Alaska and the Lower 48. RDC also supports congressional action to lift congressional moratoria.
Sincerely,
Resource Development Council for Alaska, Inc.
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