07/26/06 Off Shore Leasing

Off Shore Leasing has Big Potential. I'm Greg Martin with today's Line On Agriculture. According to Texas Republican Senator John Cornyn - there`s a big announcement coming out of Washington D.C. regarding offshore energy production in the Gulf of Mexico. According to Cornyn - it promises to be one of the most significant finds of natural gas and oil reserves on the American continent. And if Congress approves a measure to authorize drilling in the Gulf - Cornyn says the U.S. may finally see some relief from high energy costs. CORNYN: Currently there are moratoria in place that prohibit exploration for these important domestic energy supplies but it looks now like some arrangement has been reached where we might possibly be able to bring this to the floor of the Senate and Congress and pass legislation that would provide, in the near term it would at least provide tremendous relief to the energy sector in the United States and help bring down the price of oil and natural gas as a result of the increased supply. As Cornyn explains - this find could have a huge impact on the nation`s energy security - and efforts to reduce the country`s dependence on foreign sources of oil. CORNYN: The resource estimates for this area being made available under this proposal are that it would produce 1.26 billion barrels of oil and 5.8 trillion cubic feet of natural gas. Just to try and put that into context, it would provide enough natural gas to heat and cool nearly 6 million homes for the next 15 years. And as long as exploration and development is done in an environmentally sound way - Cornyn says offshore drilling will have a number of benefits for Americans...tape CORNYN: This is going to be a great opportunity for us to increase the supply of oil and gas and to help bring down prices at the pump and for businesses to depend on natural gas whether it's farmers or manufacturers in the country. According to Congressional Quarterly - Senate Republicans expect to overcome a likely Democratic challenge to the offshore drilling legislation this week (week of July 24th). That would allow for floor debate on the measure. But supporters and opponents of the bill say a vote to limit debate and advance the legislation - which requires 60 votes - could be close. That's today's Line On Agriculture. I'm Greg Martin on the Northwest Ag Information Network.