Last week the Congressional House Resources Commit-tee gave a substantial victory to proponents of opening ocean waters off the Outer Continental Shelf (OCS), including areas off the Jersey Shore, to oil and gas exploration. The measure would lift a 25-year bipartisan moratorium in drilling in these environmentally sensitive areas.
The Sierra Club is the oldest and largest “grassroots” environmental organization in America. We have consistently opposed lifting the moratorium. We believe the moratorium is particularly important to protect New Jersey’s beaches and our tourist industry. Meanwhile, drilling proponents perpetuate the myth that significant quantities of offshore oil and gas resources are foolishly “off limits” and that OCS drilling would greatly add to America’s energy independence.
In reality, the moratorium is only a limited one. The oil and gas industry already has access to the vast majority of the proven oil and gas resources off America’s coasts. The U.S. Department of the Interior estimates that at current levels of consumption, lifting the OCS ban would satisfy the nation’s oil needs for only about 16 years and its natural gas needs for about 25 years.
Apart from its obvious failure to significantly add to domestic energy supplies, two critical issues are raised by this misguided proposal: The first is the potential threat to New Jersey’s beaches. The second is the broader issue of whether “big oil and gas” has exploited the government’s Byzantine off-shore “royalty” payment system to achieve record corporate profits at taxpayer expense. Jersey Shore residents should know the facts on both:
First, OCS drilling proponents present their bill as a “compromise” since theoretically each state would have the opportunity to “opt out” of drilling off their respective coasts. Thankfully, New Jersey’s elected officials are largely united against OCS drilling. However, the bill places significant legal hurdles to “opting out.” More importantly, it ignores the insurmountable problem of oil spills in “opt in” states polluting New Jersey’s beaches. An oil slick does not respect states’ geographic coastal boundaries in its migration or honor politicians’ ugly “compromises” in its own dirty ebb and flow.
Florida, the Carolinas and the Virginia coasts are some of the primary targets of OCS drilling advocates. Among these, Virginia is our nearest neighbor. Some short-sighted Virginia politicians favor “opting in” for the revenue it would provide. But the ecological fate of New Jersey beaches should not lie in their hands. Virginia is just 75 miles from New Jersey beaches. A catastrophic “Spill One” in Virginia could destroy the ecology and economic values of the Jersey Shore for generations to come. It’s more than idle speculation.
The infamous Exxon Valdez oil spill traveled 470 miles in 56 days and is still polluting the area 17 years later. Thus, the “line in the sand” we must draw against drilling to protect New Jersey’s beaches must include the Atlantic Outer Continental Shelf, without exception. The Sierra Club asks that our neighbors, friends and the thousands of tourists who enjoy our beaches each year join hands with us in opposing lifting the OCS moratorium.
Second, now what about those record “big oil and gas” profits some even call “obscene”? Isn’t making money the American way? Well, it depends. About one-quarter of all oil and gas produced in the United States comes from federal lands and federal waters in the Gulf of Mexico. According to the Interior Department, the current Byzantine United States “royalty” system will let companies pump about $65 billion worth of oil and gas from federal territory over the next five years without taxpayers receiving a single dime. How can all this possibly be?
Simple. It started with an honest miscalculation by the Clinton administration when it supported the “Deep Water Royalty Relief Act” some years ago. But it’s a mistake that is now gleefully embraced by the Bush administration.
“Big 0il and gas” fashioned its own energy policy. It’s called “Take the Money and Run.” Taxpayers should receive “fair return” for use of taxpayer property. Should “big oil and gas” be held accountable for “ripping off” American taxpayers? The Sierra Club answers with a resounding “yes.”
A. Gregory Auriemma, Brick
Mr. Auriemma is chair of the
Sierra Club of Ocean County.