The notion of increasing our ability to generate a larger quantity of domestic gas and oil appears to be stalled after an amendment to uphold a 25-year-old moratorium on drilling for natural gas on the Outer Continental Shelf (OCS) won approval in the House.

By a 217-203 vote on May 18, the U.S. House of Representatives removed from the Interior Department's fiscal 2007 spending bill, language that would have opened all of the OCS to natural gas drilling.

The approved Putnam-Capps Amendment, sponsored by Reps. Adam Putnam (R-Florida) and Lois Capps (D-California), reversed a previously passed amendment attached to the bill that called for opening all of the OCS to gas-only drilling.

On the bright side, the close vote illustrates a substantial increase in support for exploration of natural gas on the OCS. “The vote count shows there's a growing understanding among lawmakers that making this domestic resource available for exploration is essential to increasing America's energy independence, contributing to cleaner air, and ultimately, helping to lower energy costs for the 68 million homes, businesses and industries that rely on natural gas,” said David Parker, president and CEO of American Gas Association.

On the other side of the coin, states such as California and Florida strongly oppose future drilling on the OCS. These areas have plenty of beaches and shorefront property with million dollar views. Reps from Florida and California say they fear energy projects as close as three miles from shore could jeopardize multibillion-dollar tourism industries in their states.

“People don't go to visit the coasts of Florida or the coast of California to watch oil wells,” Rep. Sam Farr (D-Calif.) said.

Well, I'll grant him that. But it seems as though the issue has now become one of “not-in-my-backyard” because it will ruin the neighborhood, and that's just not good enough.

So the debate over how to ease the cost of energy in the U.S. will rage on. In the meantime, gas and oil prices will continue to rise, negatively affecting millions of businesses and consumers. In 1995 the average cost for natural gas in the U.S. was around $1.70/mmbtu. Now it is close to $8.55/mmbtu and according to the Energy Information Association, concerns about potential future supply tightness and continuing pressure from high oil market prices will likely drive spot natural gas prices higher for the next heating season.

The U.S. forest products industry has been especially hard hit, where energy costs are the third largest manufacturing cost, having risen 50% for pulp and paper mills in just three years. As AF&PA's president, Henson Moore, states (see page 18), the industry has closed over 282 mills and lost 189,000 jobs since 2000 and high energy costs contributed to these closures and lay-offs.

To add insult to injury, Cuba is already exploring for energy 60 miles from Florida's coast, where U.S. exploration is prohibited by U.S. moratoria.

The Outer Continental Shelf Moratorium was adopted by Congress in 1981 and prevents the leasing of coastal waters for the purpose of fossil fuel development. Its intent is well-meaning. But efforts by lawmakers, industry and consumers must continue if we are to rewrite this outdated bill.

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