Proposals push energy exploration off Virginia's coast

Virginia Business
April 2006

President Bush’s plans to make the United States less dependent on foreign energy sources apparently include looking for oil and natural gas off the Virginia coast.

The administration has accepted a plan by the Interior Department’s Minerals Management Service that, among other things, proposes to survey a 6.1 million acre-area off of the Virginia coast for oil and gas exploration, If all goes well, the government would begin selling exploration leases to energy companies by 2011.

The proposal was immediately hailed by many members of the state legislature, most notably representatives from Virginia Beach, who have been pushing for offshore drilling for some time. State Sen. Frank Wagner (R-Virginia Beach) was the sponsor of a comprehensive energy bill passed in the recent General Assembly session. The bill, which laid out a 10-year road map for energy policy, seeks to lift the 16-year-old federal moratorium on offshore drilling on the Atlantic Coast and supports future natural-gas drilling at least 30 miles from the coast and limited exploration on the Outer Continental Shelf.

Wagner’s bill incorporates major concerns, including extending the mileage distance from the shore, that weren’t addressed in a similar bill last year, which passed the General Assembly but was vetoed by then Gov. Mark R. Warner. Environmental groups have urged Gov. Timothy M. Kaine to veto the new bill.

But even if Wagner’s bill is signed into law this year, an act of Congress will still be needed to lift the moratorium. Virginia’s congressional delegation, led by Sen. John Warner (R) and Rep. Thelma Drake (R-Virginia Beach), is pushing for the change. In a prepared statement, Drake said, “It is absolutely critical that we lessen our dependence on foreign sources of energy. One of the ways that can be done is exploring the natural gas resources that exist off the coast of Virginia.”

Environmentalists, however, are fighting any efforts to lift the moratorium. The state office of the Sierra Club has started a campaign against state and federal measures. “Instead of drilling off our coasts, it’s time to embrace real energy solutions — efficient, renewable resources like solar and wind power and making our cars go farther on a gallon of gas,” it stated in a release. “We don’t need to sacrifice our beaches, coastal waters and economies to meet America’s energy needs.”

By contrast, the business community is largely supportive of the concept. Ira Agricola, senior vice president of the Hampton Roads Chamber of Commerce-Virginia Beach, said that his organization is supportive of offshore drilling — so long as it’s conducted far enough offshore so as to not disrupt the area’s lucrative tourism industry.

“ Any decrease in dependence on foreign energy is a benefit in terms of energy costs and stability for business in general,” he said.