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FW: Cuba seen pushing oil

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  • karaka
    Message 1 of 1 , Mar 3, 2006
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      ------ Forwarded Message

      Cuba seen pushing oil, gas work close to Florida

      Nick Snow Washington Correspondent

      WASHINGTON, DC, Mar. 2 -- Cuba is moving to develop its offshore oil and gas
      resources, which would result in development closer to Florida's coast than
      the US government allows, Rep. John E. Peterson (R-Pa.) warned on Mar. 2.

      "Offshore oil and natural gas drilling, sanctioned by the Cuban government,
      occurs within 60 miles of Florida's southern borders. Moreover, the drilling
      potential within the existing Cuban basin is such that oil wells will, in
      the near future, be as close as 35-40 miles from the Florida keys," he said.

      The island nation cannot develop its offshore energy resources itself, so it
      enlisted the help of Canadian, Chinese, Indian, Spanish, Venezuelan, and
      Norwegian companies, Peterson said.

      With their help, Cuba has pumped $1.7 billion into its energy industry since
      2004, he said at a breakfast sponsored by Dow Chemical Co. and The Hill
      newspaper.

      The proposed 5-year Outer Continental Shelf leasing plan being developed by
      the US Minerals Management Service and a bill before the US Senate would
      establish a 100-mile oil and gas leasing buffer off Florida's coast.

      Most of the state's congressional delegation supports another bill that its
      two US senators, Republican Mel Martinez and Democrat Bill Nelson,
      introduced on Feb. 1 that would effectively push new offshore exploration
      260 miles from Tampa Bay (OGJ, Feb. 20, 2006, p. 24).

      "Any way you slice it, Cuba, with the help of its foreign enablers, is
      drilling closer to sovereign American property than we are," Peterson said.

      'Awash in gas' Calling Florida "awash in gas" with the potential to be
      self-sufficient, he said, "I would never negotiate with one state at the
      expense of the country¬čespecially one that uses 133 times the natural gas it
      produces."

      He and Rep. Neil Abercrombie (D-Ha.) have introduced HR 4318, a bill that
      would lift congressional and presidential bans on offshore drilling for
      natural gas. The measure has 133 cosponsors, including more than 20
      Democrats, Peterson said.

      Its cosponsors also include one member of Florida's House delegation,
      Republican John L. Mica. "There are others who would like to, but they're
      afraid the press would eat them alive," said Peterson.

      He told OGJ that he thinks his bill will move through the House Resources
      Committee with relative ease but face a harder test before the entire House.

      Peterson also told OGJ that Senate Energy and Natural Resources Committee
      Chairman Pete V. Domenici (R-NM) "says that if we pass it by a big enough
      margin, it will give him the momentum to get it through the Senate."

      Peterson told the breakfast audience that winning the support of House
      members from urban districts could be the key to the House's passing the
      bill by a large margin.

      "If legislators from our cities realize the impact high gas prices have on
      their voters, this will happen," he said.

      Peterson said "a couple of dozen" more House members have indicated they
      would vote for the bill even though they are not cosponsors. "I'm going to
      push the [Resources] committee for a mark-up as soon as possible," he said.

      Opposes state options He said his bill is preferable to proposals that would
      give coastal states the option to request lifting of federal moratoriums and
      withdrawals because that approach would take too long.

      "This is a crisis. I don't think giving states additional rights treats it
      that way. It delays the process," he maintained.

      His bill would extend coastal states' jurisdiction from 3 to 20 miles, give
      them 40% shares of revenue from bonus bids and royalties from any new gas
      activity off their coasts, and phase in 40% revenue shares for coastal
      states over 4 years from existing offshore gas production.

      Peterson also defended his bill's exclusion of oil and focus on gas. "I'm
      sure the oil industry wasn't happy with me when I proposed gas-only. But
      we're doing nothing now. Why should we export billions of dollars to foreign
      suppliers when we have our own natural gas?" he said.

      Excluding oil, he added, "put people at my side who wouldn't be there
      otherwise."

      Peterson said he has nothing to gain personally by trying to get the US to
      develop more of its offshore gas resources. "I don't remember ever owning an
      energy stock or making a dollar out of energy," he said.

      "My view is that we as a government are handicapping American business,
      American homeowners, and people who are just trying to survive by closing
      off these vital resources. Current prices and policies guarantee that
      America will continue to lose basic industries," Peterson warned.

      Contact Nick Snow at nsnow@....

      ------ End of Forwarded Message


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