[Congressional Record (Bound Edition), Volume 156 (2010), Part 6]
[Extensions of Remarks]
[Page 8888]
[From the U.S. Government Publishing Office, www.gpo.gov]




                    DRILLING MORATORIUM--NOT SO FAST

                                 ______
                                 

                              HON. TED POE

                                of texas

                    in the house of representatives

                         Thursday, May 20, 2010

  Mr. POE of Texas. Madam Speaker, in response to the BP oil spill, 
Secretary Salazar ordered a prohibition for the Minerals Management 
Service from issuing any new offshore drilling permits including both 
shallow water and deep water offshore drilling. While it is important 
to fully determine the cause of any accident of this magnitude, and 
learn from the mistakes, the unintended consequences of this wide 
ranging ruling are far reaching. I believe that a ban on new permits 
for both shallow water and deepwater drilling is an overreaction that 
has the potential to cause widespread economic damage to the Gulf 
Coast.
  Shallow water drilling is fundamentally different from deep water 
drilling, and has operated in the Gulf safely for 60 years. First of 
all, drilling in shallow waters is primarily for natural gas. The oil 
remaining in these reservoirs has been largely produced, so it is at 
lower pressures then the oil found at deeper depths. Second, the 
blowout preventers in shallow water drilling are located above the sea 
surface, as opposed to the sea floor with deep water drilling. So, most 
of the problems we have seen with the blowout preventer in the BP spill 
would not be present in shallow water drilling.
  Additionally, water temperatures are warmer in shallow water, and 
relief wells can be drilled much quicker and easier than in deeper 
water. The bottom line is that shallow water and deep water drilling 
are fundamentally different--yet this prohibition treats them the same.
  For these reasons, I believe the Secretary of the Interior should 
allow new drilling permits to be issued for shallow water drilling in 
the Gulf immediately. Swift action is imperative, as up to 50 drilling 
rigs will complete wells in the next six weeks and will be unable to 
accept new work as long as the current ban on new permits is in effect. 
Additionally, shallow water drilling wells operate on a much shorter 
time frame for permitting then deep water wells, sometimes as little as 
30-60 days. Therefore, it will be the shallow water drilling that is 
the most adversely affected in the short term by this ban on new 
permitting.
  With over 180,000 Americans directly employed in the oil and gas and 
mining industries along the Gulf Coast, the prospect for severe 
economic hardship is very real. This hardship will only be compounded 
by the already high unemployment rates found along the Gulf Coast and 
throughout our country. In Port Arthur, Texas, unemployment is hovering 
around 15 percent.
  Additionally, offshore crude production accounts for around 30 
percent of total U.S. crude oil production, so it is vital to our 
energy supply that safe offshore drilling resume as quickly as 
possible. We cannot afford to give up a source of domestic energy and 
American jobs at this time. I urge Secretary Salazar to immediately 
lift the ban on new permitting for shallow water drilling.
  And that's just the way it is.

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