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Washington D.C. – June 23, 2010 - Today in a hearing, members of the Subcommittee on Energy and Environment examined deepwater drilling technologies, and were told that if industry-wide standards and best practices are followed, current deepwater drilling technology is adequate to ensure safe drilling operations. Members and witnesses questioned the need for a moratorium on deepwater drilling and discussed potential negative economic and environmental consequences of such an action.
“The moratorium would introduce significant new environmental risks,” said Rep. Ralph Hall (R-TX), Ranking Member of the full Committee. “The enormous global demand for drilling rigs would be likely to result in their departure from the Gulf to other countries, increasing U.S. dependence on imported oil—and on oil tankers, which are much more prone to spills than undersea pipelines.”
Hall continued, “The moratorium would also drive skilled workers off of the rigs and into onshore jobs, meaning that a high percentage of new, less experienced workers will be responsible for operations when drilling resumes. These events related to the moratorium would appear to increase, not decrease, environmental risks, while inflicting economic damage on the people of the Gulf that would rival—if not surpass—that caused by the spill itself. ”
Recommending that the moratorium be lifted as soon as practical, Dr. Benton Baugh, President of Radoil, Inc., testified today assuring Committee Members that the technology and the systems are in place to do safe deepwater drilling. Baugh said, “It is my opinion that the current state of technology of subsea drilling system is completely adequate to provide an appropriate level of safety to control wells being drilled, protect the environment, and provide safety for personnel.”
The Office of Oil and Natural Gas, in the Department of Energy’s (DOE’s) Office of Fossil Energy, supports research and policy options to ensure clean, reliable, and affordable supplies of oil and natural gas for American consumers. However, funding for this office has declined in recent years. President Obama has proposed to terminate all oil and gas technology research in his FY 2011 budget. Even so, in recent years Congress has continued to appropriate around $5 million per year to the Office of Fossil Energy’s Petroleum-Oil Technology program.
Additionally, the Energy Policy Act of 2005 established an ultra-deepwater and unconventional onshore resources research and development program, or “Ultra-deep” program, aimed at ensuring safe and effective drilling operations. Management of the program was awarded to a research consortium known as the Research Partnership to Secure Energy for America, or RPSEA.
Discussing calls by the Administration to terminate the “Ultra-Deep” program, Ranking Member Hall said, “I think this represents a clear mis-prioritization, and I hope the Administration will reconsider its position in light of the program’s potential to advance safe and environmentally responsible drilling.”
Members today expressed disappointment not to get DOE’s perspective on deep and ultra-deepwater R&D; because on Tuesday evening the Administration backed out of its commitment to testify before the subcommittee.
The following witnesses testified today before the Subcommittee:
*Mr. Christopher A. Smith [unable to attend], Deputy Assistant Secretary for Oil and Natural Gas, Office of Fossil Energy, U.S. Department of Energy;
Mr. James Pappas, Vice President, Technical Programs, Research Partnership to Secure Energy for America (RPSEA);
Dr. Benton Baugh, President, Radoil, Inc.;
Mr. Erik Milito, Group Director, Upstream and Industry Operations, American Petroleum Institute; and
Dr. Gregory McCormack, Director, Petroleum Extension Service, University of Texas at Austin.
For more information on today’s hearing, or to read witness testimony, please visit the GOP Science and Technology Committee website.
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