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August 6th, 2009

Calling Dr. Strangelove!

Posted by: Deborah Zabarenko

Perhaps you’ve heard about the Russian submarines patrolling international waters off the U.S. East Coast (if you haven’t, take a look at a Reuters story about it) in what feels like an echo of the old Cold War. The Pentagon’s not worried about this particular venture, but there are concerns from the U.S. energy industry about another Russian foray — this one in concert with Cuba. In rhetoric that may ring a bell with anyone who saw the 1964 satirical nuclear-fear movie “Dr. Strangelove,”
the Washington-based Institute for Energy Research is sounding the alarm about a Russian-Cuban deal to drill for offshore oil near Florida.

“Russia, Communist Cuba Advance Offshore Energy Production Miles Off Florida’s Coast,” is the title on the institute’s news release. Below that is the prescription for action: “Efforts Should Send Strong Message to Interior Dept. to Open OCS in Five-Year Plan.” OCS stands for outer continental shelf, an area that was closed to oil drilling until the Bush administration opened it last year in a largely symbolic move aimed at driving down the sky-high gasoline prices of the Summer of 2008.

Environmentalists hate the idea. So does Sen. Bill Nelson, a Florida Democrat who has made opposition to offshore drilling one of his signature issues. But as it turns out, it’s unlikely that anybody — from Russia, Cuba, the United States or anywhere else — is going to get petroleum out of the OCS in the immediate future.

For a start, it takes time to set up a deep-water offshore drilling rig. And any Cuban effort would be further hampered by the need to use equipment with less than 10 percent American technology, to comply with the long standing U.S. embargo against Cuba. As my Reuters colleague Russell Blinch reported in June, there may be scope for possible U.S.-Cuban cooperation here but no Cuban drilling platform is likely to be in the area this year.

Reports of a Russian-Cuban deal to explore for oil in the Gulf of Mexico prompted a quick response from the Institute for Energy Research, self-described as a free-market energy think-tank.

“This agreement between Russia and Cuba should serve as a wake-up call to Congress and this administration, especially (Interior) Secretary (Ken) Salazar, who is slow-walking a new offshore energy blueprint for the nation,” the institute’s president, Thomas Pyle, said in a statement. “If we are to remain competitive in the global market, our government must take its foot off the brake, and expand domestic energy production of all forms, onshore and off.”

What’s your take? Should the United States drill baby drill off Florida’s coast, reasoning that if U.S. companies don’t, Russia and Cuba will? Keep a congressional ban in place? Or wait and see?

Photo credit: Reuters staff photographer (Pensacola Beach, Florida, June 25, 2008); Reuters stringer/Russia (Russian nuclear submarine off Vladivostok, July 24, 2009)

April 17th, 2009

Seeking sentiment on drilling, Salazar gets an earful

Posted by: Nichola Groom

There is no doubt that Californians made themselves clear on Thursday when they gathered to tell U.S. Secretary of the Interior Ken Salazar that they had had enough of offshore oil drilling and were ready to turn their attention to solar, wind and other renewables.

“I think the verdict today is very clear, that drilling is inappropriate,” said Leah Zimmerman, who attended the meeting dressed in a polar bear suit.

“California is well-known for being an innovative state. Why not take advantage of that rather than trying to dampen it?” asked Craig Cadwallader of the Surfrider Foundation, a group dedicated to protecting oceans and beaches.

When Salazar took office in January he was handed a Bush-era plan to open parts of the Atlantic, Gulf Coast, Pacific, and Alaska to outer continental shelf drilling.

He decided to arrange four meetings nationwide to listen to what people had to say.

“This is a sea change from the Bush administration,” said California Lieutenant Governor John Garamendi.

Salazar did not say whether the Obama administration’s energy plan would allow for new offshore drilling, but said that it would include oil and gas.

“We may not always be able to do what is popular politically but we have to do what is right based on the policy issues that are driving this country,” he told reporters. He cited those issues as national security, environmental security and economic opportunity.

“You can see public opinion on these things change over a very short period of time depending on the price of gasoline,” he said. “We need a longer term framework.”

– Reporting by Clare Baldwin

Photocredit: Reuters/Max Whittaker (U.S. Secretary of the Interior Ken Salazar with California Governor Arnold Schwarzenegger in Sacramento, California April 15, 2009)