While Virginia likely doesn’t stand to see any short-term benefit from President Obama’s plan to increase domestic oil production, Virginia Gov. Bob McDonnell is bullish on a measure being introduced by Senate Republicans that would direct the Interior Department to conduct previously scheduled lease sales, including one off the coast of Virginia.
The bill would also extend lease terms by one year for Gulf leases that were suspended under the 2010 moratorium instituted by Obama in the wake of the Deepwater Horizon oil spill, require lessees to develop spill responses and containment plans, and puts time limits on the review of drilling permits.
“I have written the president and asked him to provide the leadership and guidance America needs to move toward energy independence and not have our energy prices determined by the political situation in other nations, armed conflicts and long and tenuous supply chains,” McDonnell said in a statement. “His remarks this weekend demonstrate that the administration is increasingly focused on this matter, and is considering steps to help address this pivotal issue.”
McDonnell hailed the Senate legislation for moving “us one step closer to responsible domestic energy exploration off our shores, while ending bureaucratic delays to the efficient processing of existing drilling permits.”
Senate Democrats, meanwhile, are pursuing their own plans to save about $21 billion over the next decade by ending tax breaks for the country’s five largest oil companies, though prospects for passage of that measure are uncertain. The GOP-led House has already passed a trio of bills designed to speed up offshore oil and gas drilling.
