US Senate OKs bill opening OCS for drilling

Washington (Platts)--11Dec2006

The US Senate early Saturday passed by a vote of 79-9 a broad tax and
healthcare bill that includes language allowing new oil and gas drilling in
the Gulf of Mexico, and directs billions of dollars in revenues to Gulf
states.

The bill would open 8.3 million acres of the Outer Continental Shelf in
the Gulf of Mexico to oil and gas drilling, and would direct 37.5% of all
revenues, billions of dollars, from the Gulf primarily to Louisiana, Alabama,
Mississippi, and Texas.

The bill's passage is considered a victory for oil and gas companies and
industrial gas users as the Republican-controlled Congress finishes its last
hours of majority rule before handing over control to the Democrats, who are
expected to try to repeal oil and gas subsidies next year.

In a statement, Senator Mary Landrieu, Democrat-Louisiana, whose state
will take in billions in new revenues, said passage is "vital for the nation
because it increases energy production along America's only Energy Coast and
restores the wetlands that protect some of our nation's most critical energy
infrastructure."

President Bush is expected to sign the tax and trade measure which also
includes incentives for renewable energy producers, marginal oil and gas well
developers and a host of non-energy items. It was passed in the House of
Representatives Thursday.

--Daniel Whitten, daniel_whitten@platts.com

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