The president's decision to end an executive order banning offshore exploration of oil and gas puts pressure on Congress to end its ban as well, said the head of Devon Energy Corp.
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To some, the decision may seem like a symbolic act.
But the head of Devon Energy Corp. — Oklahoma's largest public company— said the president's act builds pressure on Congress to end its ban as well.
"We are halfway there,” said Larry Nichols, the chief executive at Devon, an offshore oil and natural gas developer. "His elimination of the presidential ban is a significant step. I hope it will lead Congress to take a more serious look at what it has been doing.”
Today, only the central and western parts of the Gulf of Mexico are open for oil exploration and production, while the industry is banned from the Gulf's eastern area and the nation's Atlantic, Pacific and Alaskan coasts.
"That's about 85 percent of our offshore resources,” Nichols said.
He also noted public surveys show consumers want more affordable petroleum — regardless of where it comes from.
"For a long time, our political leaders could do what environmentalists wanted and still deliver cheap energy. But those days are over. They are over forever. And when they are asked about how they justify these bans and other restrictions on the development of all forms of energy, those are going to be difficult questions for some people to answer.”
Nichols said the lifting of the presidential ban sends a signal to the rest of the world that the United States is serious about increasing its supplies.
He said the nation's offshore oil and natural gas industry operators are ready to get busy if Congress eliminates its bans as well.
"We are ready and willing to do it in an environmentally responsible manner. And because Devon already has four offshore discoveries in the deepest water, and other deepwater acreage, we believe it would be exceptionally well-suited to explore in these areas if they were ever opened up,” he said.
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Absolutely, Bert. I've always advocated sane thought and careful planning. Yeah, it will take years, but it will also require a complete shift in our society paradigms. You're seeing the beginning stages now. Urbanization will slow. Mass transportation of foods will give way to locally made stuff. Big trucks and cars will be replaced with smaller ones. Efficiency will become part of everything we do. I was amazed at some of the things I saw in Europe and wondered why we didn't do them here. Well, now I can say we just need to wait a while. It's just a matter of time.
Wind power is a great idea - but is a enhancer and stabalizer, not a primary source. Boone lost my interest when he started talking about natural gas fueled airplanes. I laughed uncontrollably as I turned the channel. Not going to happen because it essentially violates known physics (way too much weight vs. the energy) - unless he plans to transport maximum loads of ten ounces or so.
James, something must come along to replaqce oil. But if a viable alternative was found tommorrow how long do you think it would take for the complete change over. If we drill and use our oil to buy some time as we work hard and search hard for a viable alternative then it is worth it. If we do not work and search hard then all will be lost. But we must try, throwing up our hands in surrender is not an option.
That's a really interesting angle which, in long-term thought, is hilariously accurate. It does gamble on the assumption that oil energy will always be high demand. I remember a twilight zone episode (taken from a short story) about a rich guy that keeps going into hibernation to watch his gold investment balloon. Every couple of hundred years he would wake up, see how much he had, and then give into the greed and go back to sleep again. He finally wakes up and everything is made of gold. An astronomical event had occurred showing the planet in gold (or turning things into it - depends on which story you read). The moral of the story is to never let greed overtake your perception of the value of something. We're learning this painful lesson again with the current real estate meltdown. History has a series of them (paper in ancient times, medieval cooking charcoal, telephones, fiber optic infrastructure in the late 90's are just a few examples) I think it's a matter of time before oil is added to the list. Remember that the true definition of peak oil isn't when it begins to disappear. It's the irreversable point of maximum extraction, after which the production rate declines. If you gamble on American oil %100 and something comes along to replace it, you've wasted the economic value.
how about a different perspective...........we should be importing 100% of the oil to meet our demands. it's to our future benefit. the opec countries, for the most part, will just waste the money we pay them, and when they run out of oil we'll still have ours. by that time we will know how to produce oil sands/shales and alternative energy will be much futher along. boone is just wrong and he wants his investment in wind energy to make him another billion.
What's morally right? Every industry has companies that will toe the line. Sweat shops, electric companies, mortgage companies, hedge fund traders, car companies, etc. The list could go on and on. Yes, there are rules and restrictions in place because of the past but like I said it is across many industries and not just oil and gas. Why do you think we have the FCC, USDA, SEC, ATF, DHS, DOT, INS and every other acronym you can think of. This isnt the oil industries from years ago. Everything is calcuated because it involves huge sums of money that may or may not be recouped.
LOL. I love it how everyone jumps on me as a liberal. hahaha! Never said we all need to go to bikes. Didn't write anything about current US oil companies leaving wastelands here in the US. Just said that we need to be careful and calculating about what we do - not to knee-jerk. Yes, I agree whole heartedly with you Kevin. The US is surrounded by other countries drilling but a few feet outside our territorial waters. Either we protect our closest resources or lay down and let someone else take it. But you know darned well that the oil businesses (just like construction businesses) could give a lick about what's "morally" right to do. The reason the rules are so restrictive is because someone, somewhere, got caught being stupid. Everyone has to pay for it. My main point is that we need to be smart about it. Other generations have to live here far after you are gone. Do it smart. Yes, we need energy. But you cannot argue that we could be smarter about it. Soccer moms going from the grocery store and back do not need HUMMVEE's or Doulie diesel's. Everyone else on the planet, especially Europe, had to come to reality. You can't complain about the high gas prices. It's our turn.
Additional drilling on our own soil is only one variable to the answer. There are many others that we need as well like higher mpg cars, plug-ins, bio-fuels, lng, ect. If you wonder where the additional money to help the research of these alternatives would come from, how about the price of the leases, bonuses, rentals, and royalties all paid to the federal/state gov't from the oil companies. It has the potential to be a very very large sum of continous money.
To lease one off shore drilling rig, Devon is paying $500,000 a day and there is no gurantee that the well will be a producing one. Devon drilled 3 dry holes before hitting pay dirt on their 4th. There will not be any fly by the night companies that have that kind of cash/capital. Drilling through 20,000 feet of salt water just to get to the bottom is serious business. As far as the comparison to the Saudi's, is there an EPA, DEQ, CC, and every environmentalists looking over your shoulder to make sure you don't spill a drop? Why do you think Iraq wants foreign companies to come in and do the drilling? Because we do it better, cleaner and faster than anyone else.
James, Tis is not the Middle East. USA drillers and producers will NOT destroy our environment. Their responsibility was prominently displayed by the fact that not a barrell was spilled when 1000 offshore rigs were destroyed by Hurricanes Rita and Katrina.
Please, James and Ricky, get off the Democrat talking points and learn the true facts. We need to get on with providing energy for ourselves rather than sending our energy dollars to state sponsors of terrorism and that doesn't mean having to return to the stone age.
James is grossly exaggerating things. When the Exxon/Valdez spill happened, there was a big push to clean up the mess. But, as they found out, mother nature was cleaning it up faster and better than man possible could. Another thing is how sound and durable off-shore drilling rigs are. When Hurricane Katrina ripped through the Gulf it damaged alot of off-shore platforms, yet not one spill occurred. Looks as if to me, off shore drilling has come down to an exact science that we should allow in mass quantity. Btw, if Democrats hadn't voted against our ability to drill 6,10,12 years ago, we wouldn't be in this fix. Let's start now and say no to their environmentalist constituency so it isn't another 6,10,12 years.
James, it's either we greenlight Devon and their counterparts or we stand idly by while Vietnamese and South American oil companies slant drill into our offshore reserves.
Which would your rather have drilling off of our coast? Devon? Or the Vietnamese government's oil company?
James It is very apparent that you really have no idea how the modern oil industry is ran, There is oversight by all concerned, Government, Oil companies and contractors. And if you are that worried about the oil industry why do you use fossil fuels. And as for the waters how do you think the oil we recieve fron the middle east and Venezuela arrives in this country?
No similarity intended, Bert. I definately understand the differences in say, off-shore, compared to open desert. The point was to plea for some deliberated thought before giving unchecked permission to every fly by night company that comes along. Oversight is critical - especially when one mistake can do irrepairable damage. Somehow saying "Oh, we're sorry" after dumping millions of gallons across a seaboard shore doesn't cut it. We just need to be careful and not knee-jerk.
james I have also been to some of these areas and to compare t5hem to the US drilling is ridiculas. I have worked off the coast of Texas and La. And the waters there are clean. I have also worked off the coast of Mexico and the water there is very dirty. The last job I was on was in Argentina. And if we spilled as much oil or diesel on the ground as you would put there by changing the oil in your lawn mower we had to write a report on how it happened and how it was cleaned up. This was not the countries law but the rule of the oil company and the contractor.
Danny, don't discount the environmentalists so quickly. This is NOT a replaceable resource and if the companies are not controlled, another disaster hundreds of times worse than the Valdes is almost assured. I've been to Saudi, Kuwait, and Qatar. The oil fields are irreversable toxic wastelands, and will remain that way into the next ice age. It's extremely critical that this proceeds carefully, with deliberated actions. No one argues that the days of cheap energy here are over, but I would rather pay $5 a gallon for gas than live in the wasteland that I saw in the middle east. This is not replaceable. Any damage you do is PERMANENT - i.e. millions of years. On the other hand, if we don't drill off of our coasts, Chinese and Russian companies will (They're doing it already). Let's do this smart.
Even with this ban being lifted its going to take years before any NEW oil and on the USA market. Walk, ride your bike people and start with wind, solar power.
Thank God this is finally becoming a reality. I hate the fact that left wing environmentalist are always saying NO NO NO to off shore drilling and in the ANWR much to the terrorists pleasure as we funded their jihad! Call your conressmen and tell them to take the next major step allowing for a thriving economy and cheaper fuel!
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Thank you for joining our conversations on NewsOK.com. We encourage your discussions but ask that you stay within the bounds of our terms and conditions. Please help us by reporting comments that violate these guidelines. To review our rules of engagement, go to Commenting and posting policy.
Leave a comment. Log in below or sign up (it's free).Editor's note: It is not our intent to offer comments on crime or fatality stories.
Please, James and Ricky, get off the Democrat talking points and learn the true facts. We need to get on with providing energy for ourselves rather than sending our energy dollars to state sponsors of terrorism and that doesn't mean having to return to the stone age.
Which would your rather have drilling off of our coast? Devon? Or the Vietnamese government's oil company?