Petroleum

The federal government’s moratorium on deepwater offshore drilling—which was expected to continue through November 30th in order for the government to devise new safety regulations and environmental response measures—has faced a stumbling block in court today as the federal judge overseeing the case permitted the challenge to proceed.

Today, Sean Slone and I release our latest report, Green Transportation.  The report highlights several initiatives states are taking to green-up their transportation system, including developing alternative fuels and electric vehicle infrastructure, as well as adopting policies that seek to reduce the overall number of vehicles on the road.

In April I wrote about offshore drilling and how, politically, it wasn’t about the oil, given that the estimated recoverable reserves were unlikely to substantially impact our reliance on foreign sources of petroleum (the EIA Annual Energy Outlook 2010 assumes import reliance will remain near 50% through 2035, down from 57% in 2008); it was about securing votes for climate change legislation. 

State eNews Issue #44 | April 15, 2010


It’s unclear how states will be affected by President Obama’s plans to open up parts of the East Coast, the Gulf of Mexico and the northern coasts of Alaska to offshore oil drilling. What is clear, however, is this: Unless changes are made to the proposal, states will not receive any of the royalties from the oil production off their shores.

Suggested State Legislation: This Act creates a regulatory scheme for geologic CO2 storage. It directs the statedepartment of environmental quality (DEQ) to develop standards for regulating long-term, geologic storage of carbon dioxide (CO2) in the state. The Act provides a list of specific information that is required in permit applications for CO2 storage injection wells. It allows the DEQ to issue permits for pilot-scale CO2 sequestration and storage projects under current rules and regulations. It also requires the State Oil and Gas Supervisor, State Geologist and Director of DEQ to convene a working group to develop an appropriate bonding procedure and provides a $250,000 appropriation for the working group.

Pages