Allen Urges Deep Water Exploration to Help Break Dependence on Foreign Sources of Oil

Allen Urges Deep Water Exploration To Help Break Dependence on Foreign Sources of Oil
Offers Amendment Empowering Virginia to be able to Explore "If it Chooses"

Speaking on the floor during the first round of debate on legislation opening up a section of the Gulf of Mexico to deep water oil and gas exploration, Senator George Allen (R-VA) today urged his colleagues to give Virginia the same option of being able to explore for energy resources well off its coastline because the "most important challenge facing our country today is reducing our dangerous dependence on foreign sources of oil."

The bi-partisan legislation being debated in the Senate authorizes exploration in about 8.3 million acres in the Gulf of Mexico. A compromise was struck among the Gulf States in that it protects much of Florida's coastline while securing a share of production revenues for coastal restoration. That deal known as the Gulf of Mexico Energy Security Act of 2006 will produce 1.26 billion barrels of oil and 5.8 trillion cubic feet of natural gas. Senator Allen says "this home produced American energy can run our cars, heat our homes, and power our factories - and best of all, the money stays here in America, instead of being sent outside of America."

But Senator Allen says the legislation needs to be improved. His amendment empowers Virginia--if it chooses--to explore for oil and natural gas fifty miles from its coast line and twenty-five miles from the boundaries of neighboring States, with the State reaping up to 37.5 percent of production revenues. According to experts, that could generate more than $3-billion dollars, which Senator Allen says would be paid to Virginia's treasury for the benefit of the State's hard-working taxpayers.

"As a former Governor, I support the revenue sharing included in this legislation, notwithstanding the opposition from the White House. If Virginia is allowed to do the same, I would recommend that half of those revenues go to much-needed transportation projects, a quarter of the revenues go to reducing in-state tuition at our Virginia colleges, and another quarter goes to coastal replenishment in the coastal counties that will be supporting the necessary infrastructure - Accomack County and Northampton County, as well as the city of Virginia Beach," Senator Allen said during floor debate today.

According to the Minerals Management Service, there are 1.23 billion barrels of oil and 11.68 trillion cubic feet of natural gas along the Mid-Atlantic outer-continental shelf that includes Virginia. Currently, under a federal moratorium, the people of Virginia are banned from exploring for this remarkable amount of energy. Senator Allen says that with "gas prices surging way past $3 dollars a gallon, it is simply unfathomable to continue these obstructionist, detrimental restrictions and regulations on Virginia and other States."

"My amendment would establish a completely voluntary arrangement. It would not force the people of Virginia - my constituents - to allow deepwater exploration. It simply gives the people an option. It gives the people a choice - and I sincerely believe that the people of our State will choose to allow deepwater exploration, once they are armed with the facts and understand the opportunities, not only for the future of Virginia, but of America," said Senator Allen.

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