Jul 12 2006

SHELBY ANNOUNCES OFFSHORE DRILLING AGREEMENT

U.S. Senator Richard Shelby (R-AL) today announced an agreement on oil and gas production off the Gulf Coast. The agreement will open much of the area known as Lease 181 and the area due south of Lease 181 for exploration and production. A portion of the revenues produced from the area will be designated for the producing states on the Gulf Coast, including Alabama.

“We must continue to expand our domestic production capabilities in the United States while increasing research on new and alternative energy sources,” Senator Shelby said. “This agreement will help reduce the burden throughout the country by bringing new production online and ultimately reducing the cost of oil and gas.”

“This decision is a critical step towards leveling the playing field for the Gulf States. It is time that Alabama receive a return on its investment in our nation’s oil and gas production. Time and again we have experienced the direct impact the supply of oil and gas from the Gulf has on our economy. It is imperative that Alabamians benefit from their willingness to participate in exploration activities that are essential to our nation’s energy supply.”

This agreement will open millions of acres to production of oil and gas and make billions of barrels of oil and several trillion cubic feet of natural gas available for use. In addition, billions of dollars of revenue will be put into the federal treasury and the treasuries of the producing states of the Gulf Coast. Florida, Alabama, Mississippi, Louisiana and Texas are all participants in the agreement, which still must move through the legislative process.