Energy Companies Get Greater Access to Gulf (of Mexico)

[jpak]

http://www.lasvegassun.com/sunbin/stories/bw-cong/2006/dec/09/120908552.html

Congress approved expanded offshore drilling in its final hours, giving energy companies access to oil and natural gas deposits in a vast area once off limits in the Gulf of Mexico.

President Bush, who is expected to promptly sign the legislation, said it "will help to reduce our dependence on imported sources of energy by increasing access to domestic sources of oil and gas (and) ... strengthen our energy security."

Opponents of the bill said its revised formula for sharing royalties from energy production in federal waters - which will funnel billions of dollars to four Gulf states - would cut into government revenue at a time when the federal government faces huge deficits.

The legislation opens 8.3 million acres of Gulf waters 125 miles from the Florida Panhandle. It was part of a massive tax package that cleared the Senate early Saturday shortly before the 109th Congress adjourned.

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[amandabeech]

1. A large number of drilling rigs are leaving the Gulf of Mexico

and are headed to the Persian Gulf or Red Sea off Saudi Arabia.

Good luck trying to get many of those to come back any time soon.

This gift may look good in the package but may not work in the playroom.