Oil & Gas
 
  Outer Continental Shelf Testimony April 14, 2009

Keith Silver

It is vital that the United States continue along the path to develop the potential oil and gas fields in the Outer Continental Shelf. To lock up the nation’s most prolific, unexplored offshore basins in North America is unconscionable. 

The Outer Continental Shelf is a valuable future source of the U.S. Energy Supply.  Your own MMS conservative estimates are that there are over 53 billion barrels of oil and 288 trillion cubic feet of natural gas potentially in place.  The responsible development of America’s offshore energy resources would help supply future U.S. energy demand.  The current fields are maturing and experiencing declining levels of production.

The energy plan for the nation must include the Outer Continental Shelf, which accounts for the majority of the nation’s technically recoverable resources.  Given long lead times in development, which often exceed 10 years, MMS needs to proceed with key lease sales.  The demand for energy is and will continue to rise.  Renewable energy sources will not significantly reduce our reliance on foreign sources of oil in the near or mid-term and their construction is unlikely. In fact, organizations in at least two states, Massachusetts and California, have moved to block efforts to place renewable energy plants, wind and solar respectively, in their states.  To quote California Governor Schwarzenegger: "If we cannot put solar power plants in the Mojave Desert, I don't know where the hell we can put it,”. For the health of our economy and national security, we must utilize both conventional and unconventional energy sources.

Locally, I would urge that the MMS recognize that subsistence whaling is vitally important, both economically and culturally to the indigenous peoples of the North Slope and Northwestern Alaska.  Seasonal restrictions in active whaling waters are required to avoid potential conflicts. 

Lastly, reform the revenue sharing from the OCS to allocate a portion of offshore royalty revenue to those states who seek to develop offshore resources. Mandate those states share with the local communities to help address local impacts.

I thank you for your time.