The spike in gas prices continues to drive the conversation about America’s energy resources and why we need to develop and use them.  The price at the pump is a visible index of how the economy is doing, and its sharp increase can negatively affect consumer confidence and spending.  By focusing our efforts on lowering gas prices, we can make a big impact.

The Obama Administration, however, refuses to make this goal its priority.  At a recent congressional hearing, Energy Secretary Steven Chu said lowering fuel costs was not the Administration’s “overall goal.”  During his 2008 campaign, President Obama expressed a similar sentiment, saying he “would have preferred a gradual increase.”  Both support alternative energy sources over using our plentiful domestic supplies. 

Harmful Effects

For coastal states like Mississippi, the President’s resistance to offshore drilling triggers far-reaching effects.  Job creation and economic development are put on the back burner.  Communities miss out on tax revenue.  And we move further away from energy independence and stability at the pump.

According to the Institute for Energy Research, less than 3 percent of America’s offshore areas are leased for oil and natural gas production.  In the Gulf of Mexico, the President’s de facto moratorium on drilling has held up tens of thousands of jobs and billions in investment.  Projections from the Energy Information Administration expect this year’s production in the Gulf to be 19 percent less than 2010. 

A Raid on Coastal Assistance

Now the Obama Administration wants to draw down coastal states’ offshore oil and gas receipts even more.  The President’s new budget calls for the permanent withdrawal of $200 million from the Coastal Impact Assistance Program (CIAP), which distributes federal royalties collected from offshore leases to states affected by oil and gas exploration and production, including Mississippi.  Our state could lose $23 million – or nearly 40 percent of the remaining money it has been allocated – if the President’s budget takes effect.
CIAP was established to support the conservation, protection, and restoration of coastal areas, and its funding comes from energy production in the states it benefits.  It is also an incentive for states to allow production in federal waters.
 
The Obama Administration is wrong to rescind this money for its own spending agenda elsewhere.  Gulf States contribute billions each year in oil and gas severance taxes to federal treasuries.  Mississippi should be able to keep the money designated to it for critical projects that can preserve and enhance our coastline. 

Seeking Energy Independence

I am disheartened by the President’s dismissal of Gulf Coast needs in the Department of the Interior’s budget this year.  CIAP helps ensure that the ecological well-being of our coastline remains a priority as we seek energy-producing opportunities in the federal waters off our shores.  Its projects are important and should be seen to completion.

At a time when a stable energy supply is critical, the Obama Administration continues to pursue ill-advised policies instead of unleashing this country’s domestic energy production.  A national strategy for energy independence will not come by way of fewer offshore oil and gas leases and budget cuts to constructive programs in energy-rich states.  Mississippi and the nation deserve better.

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