One Small Step Toward Cheaper Gasoline

President Bush today lifted a 15 year old executive ban on drilling for oil in the Outer Continental Shelf, the first step in a series of steps needed to finally permit American companies to produce more oil, adding to supply and ultimately, bringing down oil and gasoline prices.

The continental shelf is the gently sloping undersea plain from the shoreline of a continent to deep ocean. The US has jurisdiction over the the Continental shelf from shoreline to at least 200 miles, and in some regions up to 350 miles.  Coastal states have jurisdiction over the first four miles.  The Outer Continental Shelf (OCS) starts at the limit of state jurisdiction and extends to the limit of federal jurisdiction.

Any oil production platforms on the OCS would be many miles out, over the horizon, and not visible from shore.  Nobody’s ocean view would be degraded.  The oil spills of decades ago are no longer a genuine risk.  Even when Hurricane Katrina roared through the Gulf of Mexico, where there are scores of oil production platforms, there were no leaks or spills at all.

Before today, there were two bans on exploring and drilling for oil in the OCS: An executive order signed by the First President Bush, and a Legislative ban, enacted into law by Congress in 1981.  Today, President Bush lifted the executive ban.  Only Congress can lift the Legislative ban.

If the ban were lifted the government could lease sections of the OCS to oil companies.  Those companies would then use their own resources, not taxpayer resources to explore the leased sections to determine how much oil was available.  In those sections where they found deposits of oil large enough to warrant the investment, they would install drilling platforms, and extract the oil – again, at their own expense.

Predictably, The Democrats in Congress reiterated their stone-wall resistance to producing more oil in the United States.  Their excuse is that new exploration and drilling would take many years and thus, could not result in lower gas prices immediately.

What they fail to disclose is most of the delay would be caused by the pre-production bureaucratic permitting requirements imposed by government, and lawsuits launched by so-called “environmental groups” who have advocated higher gas prices for decades, and don’t want any oil production anywhere, under any circumstances.

In one stroke, Congress can pass legislation that lifts the ban, streamlines and simplifies the permitting process, and, invalidates lawsuits.

Nancy Pelosi said “Once again, the oilman in the White House is echoing the demands of Big Oil,” apparently referring to the fact that both the President and Vice President have had some experience in the oil industry.  Speaker Pelosi refers darkly to “demands” when only thing “Big Oil” asks is for permission to use their own resources to extract oil from the OCS!  In other words, oil companies “demand” permission to produce as much oil and gasoline as Americans customers are willing to buy!

The government allows Starbucks to sell as much coffee, and Apple to produce as many ipods, as customers wish to buy.  Someone should ask Speaker Pelosi: Is the government “meeting the demands” of Starbucks and Apple by not restricting their production?