by Daniel J. Weiss

The Department of Interior released an updated analysis of fossil fuel leases today, finding that more than two thirds of offshore leases and half of onshore leases are sitting idle — “neither producing nor under active exploration.”

The report, “Oil and Gas Lease Utilization, Onshore and Offshore Updated Report to the President,” explained that oil and gas companies hold thousands of undeveloped leases. Despite holding these inactive leases, the oil industry continues to demand the opening of new, previously protected federal lands and waters areas to drilling.

The report found that:

More than 70 percent of the tens of millions of offshore acres currently under lease are inactive, neither producing nor currently subject to approved or pending exploration or development plans. Out of nearly 36 million acres leased offshore, only about 10 million acres are active – leaving nearly 72 percent of the offshore leased area idle.

In the lower 48 states, an additional 20.8 million acres, or 56 percent of onshore leased acres, remain idle. Furthermore, there are approximately 7,000 approved permits for drilling on federal and Indian lands that have not yet been drilled by companies.

According to the Energy Information Administration, total federal oil production (offshore and onshore) has increased by 13 percent during the first three years of the Obama administration combined, compared with the last three years of the previous administration. According to independent analysis, the total number of active rigs operating on the U.S. outer continental shelf was higher in January 2012 than any time since May 2010.

The American Petroleum Institute – Big Oil’s lobbying arm — claims that the Department of Interior ignores exploratory work on leases; however, that is clearly included in DOI’s assessment above.

API recently demanded that the Obama Administration open up the North Atlantic to “seismic exploration” for oil. This is an area that supports vital American fisheries.

In addition to holding thousands of undeveloped leases while lobbying to drill in the Arctic National Wildlife Refuge, off the New England Coast, and in the Eastern Gulf of Mexico, the big five oil companies produced 12 percent less oil in 2011 than in 2006 — all while making record profits.

Daniel J. Weiss is Director of Climate Strategy at the Center for American Progress Action Fund.

More domestic drilling does not make America less susceptible to global supply disruptions or protect consumers from gasoline price volatility, according to a new analysis from the Congressional Budget Office.

The CBO report reviewed different policies intended to make the country more energy secure, concluding that the only effective tool for shielding businesses and consumers from price spikes is to use less oil.

Because oil is sold on the global market, CBO concludes that increasing domestic oil production would do little to influence rising gas prices in the U.S.

These findings back up historical experience. According to an analysis of 36 years of gasoline prices and domestic oil production conducted by the Associated Press, there is zero statistical correlation between increased drilling and lower prices at the gas pump.

The CBO report creates a dilemma for drilling proponents. Even if increased drilling did substantially lower gas prices — which it has not –  the agency says those lower prices would actually make the country less secure from price shocks:

Policies that promoted greater production of oil in the United States would probably not protect U.S. consumers from sudden worldwide increases in oil prices stemming from supply disruptions elsewhere in the world, even if increased production lowered the world price of oil on an ongoing basis. In fact, such lower prices would encourage greater use of oil, thus making consumers more vulnerable to increases in oil prices. Even if the United States increased production and became a net exporter of oil, U.S. consumers would still be exposed to gasoline prices that rose and fell in response to disruptions around the world.

In contrast, policies that reduced the use of oil and its products would create an incentive for consumers to use less oil or make decisions that reduced their exposure to higher oil prices in the future, such as purchasing more fuel-efficient vehicles or living closer to work. Such policies would impose costs on vehicle users (in the case of fuel taxes or fuel-efficiency requirements) or taxpayers (in the case of subsidies for alternative fuels or for new vehicle technologies). But the resulting decisions would make consumers less vulnerable to increases in oil prices.

The solution is clear: the only way to make America more energy secure is to use less energy.

Even Mitt Romney understood this in 2007 when he admitted that “these high gasoline prices are probably here to stay” and advocated 50-mpg fuel efficiency standards, public transportation, electric vehicles, and renewable alternatives.

However, today, Romney champions opening up virtually every possible area of the U.S. to oil drilling — disingenuously claiming it will make consumers more secure.

“The best thing we can do to get the price of gas to be more moderate and not have to be dependent upon the cartel is: drill in the gulf, drill in the outer continent shelf, drill in ANWR, drill in North Dakota, South Dakota, drill in Oklahoma and Texas,” Romney said at a recent campaign stop.

Even as the analysis piles up showing that increased domestic drilling is not an effective solution to high gas prices or energy security, political leaders continue to repeat these false claims.

We need creative, proven ideas to help us make America more efficient and less dependent on oil — not a hollow Drill-Baby-Drill mantra that does nothing to address the problem.

Related Posts:

• Murdoch’s Wall Street Journal and Koch-Fueled Cato Agree: “It’s Not Obama’s Fault That Crude Oil Prices Have Increased”
• GOP: ‘You Think We’re Going To Have A Press Conference Now To Congratulate The Administration For Decreasing Gas Prices?’

by Tom Kenworthy

The Environmental Protection Agency today took an important step toward reducing the harmful health effects of air pollution from oil and gas drilling operations.

The agency issued new rules that will require companies to capture emissions of toxic chemicals, compounds that contribute to smog, and methane, a potent global warming gas.

In a significant concession to the oil and gas industry, which has lobbied furiously to water down the requirements, the agency extended the time for full implementation to nearly three years, setting a limit of January 2015. By that final 2015 deadline, companies must have equipment in place to capture emissions through so-called “green completions.” Prior to the deadline companies will be able to flare or burn escaping gas and chemicals.

Gina McCarthy, assistant EPA administrator for air and radiation, said the change in the compliance deadline came when EPA determined it would take time for industry to get the technology in place for capturing emissions and to train personnel.

“We took a look at the data. There does need to be time for equipment to be manufactured, for training to be conducted…. This is a reasonable step…. It wasn’t politically motivated.”

EPA rejected industry appeals to limit the rules only to wells emitting high levels of volatile organic compounds, or VOCs.

The proposed rules include the first federal standards for hydraulic fracturing operations. The rules will cover the estimated 13,000 U.S. wells that are hydraulically fractured or re-fractured each year, and apply to various parts of the oil and gas development process, from well completion to processing.

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