Permitorium: Administration Opposes Bill That Would Encourage Off-Shore Drilling

The Oil & Gas Journal is reporting:

Tighter federal budgets and more pressure to reduce the budget deficit make sharing US Outer Continental Shelf energy revenue with coastal states and communities unaffordable and impractical, an Obama administration official told the Senate Energy and Natural Resources Committee on July 23. Two cosponsors of an OCS revenue-sharing bill countered that it’s essential and long overdue.

“The revenue-sharing provisions of S. 1273 would ultimately reduce the net return to taxpayers in every state from the development of offshore energy resources owned by all Americans, have significant and long-term costs to the federal treasury, and increase the federal deficit,” said Pamela K. Haze, deputy US Interior secretary for budget, finance, performance, and acquisition.

“In addition, the bill does not appear to be targeted to achieve clear conservation or energy policy outcomes,” Haze said, adding, “For these reasons, the administration cannot support the bill.

Several story lines in that article, least of which the one about "achieving clear conservation or energy policy outcomes."  In other words: the permitorium continues.

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Note to the Granddaughters

Leisurely drive down I-40, just south of the Grand Canyon -- Williams, AZ, west of and just outside of Flagstaff. I am driving back from Los Angeles to Dallas.

I'm driving about 55 - 60 mph on the interstate -- wishing the trip would not end. It is impossible to exaggerate how beautiful the scenery is. Elk warnings along the road but have not seen any elk yet. I just missed hitting a road runner (the little bird). Unfortunately, Wiley Coyote did not see me ... just joking.

I'm driving so slowly, I have to move out of the way to let the big rigs pass me -- going uphill!

I took this same trip in the reverse direction a few weeks ago, but drove some of it during the night, so it's nice to see what I missed. Traffic fairly heavy -- gateway to the Grand Canyon, but McDonald's parking lot is not as busy as one would expect during the tourist season. But then, I've not been here before so I don't know how it compares with past years.

In the more remote areas, the least expensive gasoline costs about $3.58/gallon while generally it is running about $4.19 to $4.29/gallon. But the range is quite remarkable. Despite the price, Platts is reporting increased gasoline demand (posted elsewhere a few minutes ago). One can see graphic of gasoline demand here.

I see the price of oil dropped quite a bit today: so much for that Mideast tension. Whatever happened to Syria? The latest news: the ebb and flow has now brought Assad back with the upper hand. President O'Bama given at least five (5) options by his cabinet (DOD and State), which will give him plenty of time to dither. Which, in this case, is very good news. Might as well wait to see which side is winning before committing. Also, we need to see what the Israelis plant to do. That was pretty neat to hear that Israel can take out Iran with submarine-launched missiles. So much for lack of fighter range for Israeli jets to get to Iran and back. Call is the "Keystone phenomenon." If one tactic won't work, try something else (such as CBR now that the Keystone is dead).