Major producer groups have protested the Obama administration’s decision Tuesday to stall the review of the new five-year offshore leasing plan (2010-2015) that was issued in the final days of the Bush administration.

“Congress made the American people wait nearly 30 years to address our immediate energy challenges,” and Interior Secretary Ken Salazar Tuesday “told the American people they must continue to wait — even though more than two-thirds of them want to tap our vast domestic resources for the benefit of all Americans,” said Jack Gerard, president of the American Petroleum Institute (API).

“The accelerated Outer Continental Shelf [OCS] five-year plan process, which the secretary placed on hold…was designed to address the critical energy concerns facing Americans,” he said. Gerard noted that the draft plan already has received a record 120,000 comments from states, environmental groups, industry, labor groups and the public — with 87,000 of the comments supporting expanded and expeditious development.

“Secretary Salazar’s announcement means that development of our offshore resources could be stalled indefinitely…Salazar’s delay does a disservice to all Americans. We should be moving as quickly as possible to develop more of our own oil and natural gas to benefit all Americans,” Gerard said.

To delay the process, Salazar has added 180 days to the period for public comment on the proposed leasing plan. Comments initially were due March 23, but the deadline has been extended to Sept. 23. He further has directed Interior’s Minerals Management Service and the U.S. Geological Survey to issue a report on traditional and renewable OCS resources in 45 days. And 30 days following the issuance of the report, Salazar said he will host four regional meetings on the OCS in Alaska and along the Eastern Seaboard, West Coast and Gulf of Mexico. He also signaled that his focus will be on developing offshore renewable resources rather than oil and gas, and intends to issue a final rulemaking in the coming month (see Daily GPI, Feb. 11).

The Independent Petroleum Association of America (IPAA) echoed the API’s sentiments. “I am disappointed by the Obama administration’s decision to delay moving forward on domestic energy development — especially at a time when our economy is struggling, unemployment is rising and state treasuries are suffering,” said IPAA President Barry Russell.

“Poll after poll confirms that the American people understand the imperative of producing more of our energy resources right here at home, support it and are prepared to take the steps necessary to ensure it remains a top national priority,” he said.

“We need to act quickly and aggressively to develop domestic energy resources…This unnecessary delay will hold America back, at the precise moment when we need to move forward the most,” Russell said.

On Capitol Hill Sen. Lisa Murkowski (R-AK) reminded President Obama that during his run for the White House he supported including offshore drilling in a comprehensive energy package, but she noted that his administration so far has taken no steps to encourage domestic production of conventional oil and natural gas (see Daily GPI, Aug. 5, 2008).

“If past policies are to be dismissed, it should be those that locked away vital resources and left our nation nearly 60% dependent on foreign oil,” said Murkowski, the ranking Republican member of the Senate Energy and Natural Resources Committee.

“Every state should have the opportunity to decide for itself whether it wants to develop its offshore resources. Those states that choose to allow development should benefit by receiving a fair share of federal revenues from production,” she noted.

Democrats mostly supported Salazar’s decision to put the five-year leasing plan on hold. “Secretary Salazar’s strategy for developing offshore energy is both thoughtful and balanced. Public opinion on offshore development varies from region to region, so his plan to hold regional conferences makes a good deal of sense,” said Senate Energy and Natural Resources Committee Chairman Jeff Bingaman (D-NM).

“This is very good news from the Interior Department…I look forward to turning the page on the false promise of new offshore drilling — and instead focus on making the shift to a cleaner and greener energy policy,” said Sen. Dianne Feinstein (D-CA).

“The new administration is stopping this headlong rush to open new offshore areas [to] drilling, calling for a thorough review with much greater public participation,” said House Speaker Nancy Pelosi (D-CA).

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