President Bush Moves To Lift Ban on Offshore Drilling

This is a developing story, but the basics are that a moratorium in place since President Reagan will be lifted by executive order by President Bush. The moratorium restricted offshore drilling on the continental shelf.

Expect the Democrats to complain bitterly over the move, particularly New Jersey Democrats Gov. Jon Corzine, Sen. Bob Menendez, and Sen. Frank Lautenberg who all think that offshore drilling with destroy the Jersey Shore tourist economy. They also all ignore the fact that to get people to the Jersey Shore requires oil refined into gasoline, and if the prices are sufficiently high, tourists will seek other venues to spend their money.

President Bush had wanted Congress to act first, but dithering by the Democratic leadership has meant that no change to the Congressional ban on offshore drilling. This move puts still more pressure on the Democrats to finally take action that will result in more energy produced domestically.

UPDATE:
As expected, Congressional Democrats are absolutely tone deaf and think that drilling for oil is a bad thing if it results in lower gas prices and means that people might spend more elsewhere than on fuel, transit, and heating costs. Rep. Nancy Pelosi illustrates this principle nicely:

"The Bush plan is a hoax. It will neither reduce gas prices nor increase energy independence. It just gives millions more acres to the same companies that are sitting on nearly 68 million acres of public lands and coastal areas.

"If the President wants to bring down prices in the next two weeks, not the next two decades, he should free our oil by releasing a small portion of the more than 700 million barrels of oil we have put in the Strategic Petroleum Reserve.

"It's time to tell the oil industry: 'You already have millions of acres to drill. Use it or lose it.'"

Releasing a small portion of the SPR? Are you kidding me? That's going to bring down the price of oil? Nope, that's a literal drop in the bucket compared to the daily usage by the US and worldwide demand.

No, the way to reduce prices of oil is a long term plan of more drilling domestically coupled with conservation and better efficiencies. You cannot conserve your way out of the mess because the global economy is growing.

And threatening to yank oil leases if companies do not drill is just asinine. Not every acre of land provides viable oil, nor does it provide viable oil at a cost-effective rate. Areas that have been off limits until now might provide economically viable and cost effective oil going forward, and that could have a tempering effect on the prices moving upwards.