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Providing coverage of Alaska and northern Canada's oil and gas industry
February 2012

Vol. 17, No. 8 Week of February 19, 2012

Obama sends signals on OCS

In his budget announced on Feb. 13 President Obama signaled at least some of his administration’s intentions when it comes to resource development on the outer continental shelf. In his first budget funding request for the new Bureau of Safety and Environmental Enforcement, the Interior agency charged with safety oversight of the OCS, the president has asked for $222.2 million in funding, a figure $25 million higher than what Congress appropriated for the agency for the current fiscal year.

“Today’s budget proposal provides the necessary resources for BSEE to firmly establish itself as a world class offshore safety regulator,” said BSEE Director James Watson in announcing the funding request. “We are stepping up our efforts to efficiently process drilling permits, provide better training for our inspectors and engineers, and enforce current requirements while continuing to search for better ways to protect the offshore environment.”

BSEE says that the requested funds will be offset by the collection of $125.9 million in fees such as inspection fees and rental receipts. The agency says that $14.7 million of the funding increase will support efforts to improve efficiency in dealing with drilling permits, offshore inspections, enforcement actions and the investigation of incidents.

The president has also requested $146.1 million to fund the Bureau of Ocean Energy Management, the agency responsible for the management of resource development on the OCS. That request represents a $2.2 million funding increase over the current year.

“Our priorities are advancing the administration’s commitment to a comprehensive energy strategy that encourages safe and responsible production of domestic oil and gas resources and expanding the development of renewable sources of energy,” said BOEM Director Tommy Beaudreau.

—Alan Bailey






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