Kudos to Congress on Stalling Oil Spill Response

Open e-mail to Rep. Neugebauer:

Randy,

As you know, much of my political writing is derogatory and generally negative with respect to government action. In this particular case, I congratulate Congress on its inaction.

The August 22 issue of C&E News has an article complaining that more than a year has passed since BP's Deepwater Horizon rig exploded in the Gulf of Mexico killing 11 workers and causing the largest marine oil spill in the history of the petroleum industry. The Interior Department immediately revised rules governing offshore oil drilling to include a lengthier and more extensive permitting process. C&E News is lamenting that Congress has made little headway toward addressing the safety issues raised by the disaster.

We have said before that the deaths of workers and the subsequent environmental problems caused by the oil spill are deeply regretted. While fault has been found with BP's operation prior to the spill, there is no doubt that the so-called disaster was also a result of unpredictable natural causes. No one realized that the upward pressure of the oil reserve exceeded the pressure at the bottom level of more than a mile of water. A favorable aspect is also that a completely new large body oil reserve had been discovered.

While fault can definitely be found with BP and its subcontractors, their drilling program was not unduly risky and the accident cost the company a tremendous loss, such that it almost resulted in bankruptcy. On the positive side, significant new information was obtained, which has resulted in improved technology not only for BP but also other deepwater drillers. Let's keep in mind that the business of deepwater drilling is to obtain usable oil and anything that works against that is a detriment to the program. More simply, deepwater drillers avoid unnecessary risks wherever possible, but risks are inherent in any development.

While the oil spill caused considerable damage per se, the action of the Interior Department has probably done more damage to our economy. Our society runs on oil, and the limitations imposed by the Interior Department have significantly reduced our domestic oil production and contributed to our poor balance of international payments, by forcing oil importation. I and others have been fighting that ever since, with our watchwords, "Drill, Drill, Drill".

Reverting to the good news, Congress has been inactive in applying safety rules. These are not needed. The oil industry knows what it has to do, and the Interior Department has already placed more restrictions than we should have. My heart is warmed by the comments of Rep. Doc Hastings, Chairman of the National Resources Committee. I now quote from the Chemical and Engineering News article on what Rep. Hastings had to say, "The regulatory cobweb of red tape and constantly moving goalposts created by the Obama Administration after the Gulf of Mexico oil spill have resulted in a de facto moratorium on deepwater and shallow-water drilling permits. From day one I've said that we need all the facts surrounding the course of this tragic event before jumping to conclusions and passing reforms with long-term consequences."

Let's hope that in the final analysis Rep. Hastings finds it more necessary to limit the the detrimental actions of the Interior Department. rather than develop another set of rules, which would contribute to the destruction of our economy.