White House Decision Ensures Virginia will be First State on Eastern Seaboard to Produce Natural Gas and Oil Offshore
Major Step Forward in McDonnell Goal of Making Virginia “The Energy Capital of the East Coast”
President Barack Obama announced this morning that Virginia will be the first state on the East Coast to explore for and produce natural gas and oil offshore. Governor Bob McDonnell has been a longtime proponent of this important policy since the federal moratorium on Atlantic drilling ended in 2008. Coastal exploration and drilling that will lead to thousands of new jobs and billions in economic impact in Virginia. In response, the Governor issued the following statement:
“I thank the President and Secretary of the Interior Ken Salazar for ensuring Virginia will be the first state on the East Coast to explore for and produce energy offshore. The President’s decision to allow energy exploration off Virginia’s coast will mean thousands of new jobs, hundreds of millions in new state revenue and tens of billions of dollars in economic impact for the Commonwealth. It will also help our nation take a further step towards energy independence. Environmentally-safe offshore energy exploration and production is good for Virginia workers, the Virginia economy and national security. Just this session the General Assembly passed, with bipartisan support, legislation I requested to authorize offshore oil and gas exploration and drilling and to allocate 80% of revenues to transportation and 20% to green energy research and development.
The effort to ensure that Virginia stayed on track to hold an offshore lease sale as expeditiously as possible has been a bipartisan one at the federal level as well. I want to specifically thank Senator Mark Warner, Senator Jim Webb and Congressman Eric Cantor for their leadership and advocacy on the issue. I also want to thank all the Republicans and Democrats in our Congressional delegation who have strongly advocated for offshore energy production.
With today’s announcement, oil and gas can be produced in an environmentally-safe manner 50 miles off Virginia’s coast. Virginians will benefit from the thousands of jobs that will be created and the economic activity and development that will accompany this vital industry’s arrival in the state. However, to fully participate in the positive impact of offshore energy development, the Commonwealth must be included in all royalty and revenue sharing arrangements, in a manner equivalent to what the Gulf Coast states currently receive. Congressman Bob Goodlatte has already introduced legislation, with bipartisan support, to ensure revenue sharing. I urge our federal representatives to immediately move forward in ensuring Virginia receives our fair share of the revenues derived from our natural resources. I am confident that the United States Congress will act appropriately and expeditiously to ensure this occurs.
Offshore energy production is one part of an “all of the above” approach to ensuring energy security. It is an important component of the comprehensive energy policy that we must enact to move towards greater domestic energy security. We will also do more in Virginia to promote and produce other sources of energy in our borders, including wind, solar, biomass, coal and nuclear. Today’s announcement means future new jobs for Virginians and much-needed revenue for our Commonwealth. Again, I applaud the President for his decision, and thank all the Virginia leaders from both parties who have worked together to make this announcement possible.”