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Ah, that bastion of environmental consciousness out on the Left Coast, California, has caved in and approved an offshore drilling lease...sold themselves down the road for a measly $1.5 million in new buses and a land grant not quite double the size of Neverland Ranch...:eek:
Not quite deserving of "hell freezes over" status, but perhaps a foreshadowing of what is to come? What happened to hydrocarbon related climate change concerns? How about that Hydrogen Highway? Or the California Solar Initiative?
Don't tell me a little financial problem is going to cause California to revert to exploiting the dreaded hydrocarbon in a desperate attempt to save itself...:p. Will they use whatever they find themselves? Or peddle it to unsuspecting Nebraskans, thus maintaining the fiction of their green credentials? Could it be they just want to do their part to combat Peak Cheap Oil? Will an offshore drilling rig become the new State emblem in the future?
Just askin'...
Not quite deserving of "hell freezes over" status, but perhaps a foreshadowing of what is to come? What happened to hydrocarbon related climate change concerns? How about that Hydrogen Highway? Or the California Solar Initiative?
Don't tell me a little financial problem is going to cause California to revert to exploiting the dreaded hydrocarbon in a desperate attempt to save itself...:p. Will they use whatever they find themselves? Or peddle it to unsuspecting Nebraskans, thus maintaining the fiction of their green credentials? Could it be they just want to do their part to combat Peak Cheap Oil? Will an offshore drilling rig become the new State emblem in the future?
Just askin'...
California's Senate Approves First Offshore Oil Lease Since 1969
by Rigzone Staff
|
Friday, July 24, 2009
California's senate voted on Friday to approve the first new offshore oil drilling lease since 1969. However, state officials underscore that California's policy on offshore drilling has not changed and that the proposal is a one-time exemption to the state's otherwise long-term moratorium on new leases on the Outer Continental Shelf.
Passed in the state senate by a 21-18 vote, the bill is one of 30 that will be considered as a means to boost revenues and help close the state's $26 billion deficit.
Championed by Gov. Arnold Schwarzenegger, the bill will allow Plains Exploration & Production, a Houston-based independent oil and natural gas producer, to access oil in state waters using slant drilling in a project known as Tranquillon Ridge.
As part of an agreement with environmentalists who support the measure, the producer has agreed to shut down four oil platforms and two onshore processing facilities in Santa Barbara by 2024. Additionally, PXP will give $1.5 million to the county for low-carbon bus technology, as well as donate 4,000 acres of land for public use.
The Tranquillon Ridge project is expected to garner an estimated $1.8 billion in royalties over the span of 15 years.
PXP will pay $100 million to the state before the project commences.
by Rigzone Staff
|
Friday, July 24, 2009
California's senate voted on Friday to approve the first new offshore oil drilling lease since 1969. However, state officials underscore that California's policy on offshore drilling has not changed and that the proposal is a one-time exemption to the state's otherwise long-term moratorium on new leases on the Outer Continental Shelf.
Passed in the state senate by a 21-18 vote, the bill is one of 30 that will be considered as a means to boost revenues and help close the state's $26 billion deficit.
Championed by Gov. Arnold Schwarzenegger, the bill will allow Plains Exploration & Production, a Houston-based independent oil and natural gas producer, to access oil in state waters using slant drilling in a project known as Tranquillon Ridge.
As part of an agreement with environmentalists who support the measure, the producer has agreed to shut down four oil platforms and two onshore processing facilities in Santa Barbara by 2024. Additionally, PXP will give $1.5 million to the county for low-carbon bus technology, as well as donate 4,000 acres of land for public use.
The Tranquillon Ridge project is expected to garner an estimated $1.8 billion in royalties over the span of 15 years.
PXP will pay $100 million to the state before the project commences.
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