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Trump’s plans to expand offshore drilling face headwind on Atlantic coast

February 22, 2018 — WASHINGTON — President Donald Trump’s bid to open Atlantic waters to offshore drilling has sparked bipartisan opposition in the states with the largest oil and gas reserves off their coasts, presenting unexpected obstacles to the long-held designs of the energy industry.

In recent years, political leaders in Virginia, North Carolina and South Carolina had supported oil and gas drilling off their coasts, envisioning high-paying jobs and increased tax revenues. But new governors in the three states – two Democrats and a Republican – have all reversed the positions of their predecessors, fearing the potential impact on beaches, fisheries and tourism industries.

“This last election we’ve seen a significant shift at the leadership level,” said David Holt, president of the Consumer Energy Alliance, a trade group representing large energy users and producers. “If you look at the last 10 years, the majority of the governors and the public had been supportive.”

For oil executives in Houston, an international center of the offshore oil and gas sector, the Atlantic coast is a new frontier that could potentially mean significant profits in the decades ahead. Most of the world’s biggest oil companies, including Exxon Mobil, Chevron and Royal Dutch Shell, have a major presence here, employing thousands of people, as do firms specializing in offshore drilling and services, including TechnipFMC, National Oilwell Varco, McDermott International and Transocean.

But the recent shift in political and public sentiment represents a very real threat to their plans.

The oil and gas industry has sought access to U.S. Atlantic waters for years, hoping to find rich oil and gas fields similar to those off the coasts of Nigeria and Ghana. In Trump – who proclaims “energy dominance” almost as frequently as “Make America great again” – the industry believed it had found the key to achieving its goal.

Energy companies came close two years ago when former President Barack Obama considered allowing oil and gas development in Atlantic waters. They had the support of Republicans and Democrats, including Virginia Sen. Tim Kaine, the Democratic nominee for vice president in 2016, and former Virginia Gov. Terry McAuliffe, a longtime friend and fund raiser for Hillary and Bill Clinton, but Obama ultimately decided against an expansion of offshore drilling.

Read the full story at the Houston Chronicle

 

Opposition grows to seismic testing for offshore oil reserves

More state and local officials join scientists in voicing concerns about impacts on marine life

August 1, 2017 — Scientists are worried that an executive order issued by President Trump earlier this year that seeks to open large portions of the mid-Atlantic and other coastal areas to oil and gas exploration would harm the endangered North Atlantic right whale and other species that occasionally visit the Chesapeake Bay.

Trump’s order, issued April 28, would reverse a 2016 policy from the Obama administration that closed federal waters off portions of the Atlantic, Arctic and Pacific coasts and the Gulf of Mexico to drilling as part of the administration’s effort to boost domestic energy production. The order also instructed federal agencies to streamline the permitting process to speed approval of seismic testing to locate oil and gas reserves in those areas.

But the action is increasingly unpopular with many elected officials along the East Coast. In July, Maryland Gov. Larry Hogan publically stated his opposition to any further offshore exploration. And the attorneys general from nine East Coast jurisdictions — including those from Maryland, Pennsylvania, the District of Columbia and Delaware — submitted comments opposing additional surveys.

“The proposed seismic tests are themselves disruptive and harmful,” Maryland Attorney General Brian Frosh said in a statement. “Worse, they are the precursors to offshore drilling that would put the Chesapeake Bay at risk to drilling-related contamination. That contamination would have catastrophic impacts on fragile ecosystems and important economies. This is a foolish gamble with our precious natural resources.”

Gov. Terry McAuliffe of Virginia is the lone Southeastern governor supporting marine oil exploration, saying he “never had a problem” with seismic testing. While 127 municipalities have passed resolutions against the tests, only five are in Virginia.

Read the full story at the Bay Journal

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