The Obama administration announced plans to increase the country's offshore drilling, with leases in areas in the Gulf of Mexico and off of Alaska. Now, governors and representatives of states along the Mid-Atlantic coast, including South Carolina and North Carolina, are urging the government to open new areas to the industry.
Last week, politicians of the Offshore Technology Conference (OTC) in Houston proposed, alongside a wish for increased drilling, a revenue plan.
"Under existing federal law, four Gulf states will be able to collect 37.5 percent of oil and gas royalty revenue on some leases beginning in 2017, capped at $500 million annually," an article in the Houston Chronicle said. A new proposal by Louisiana Senator Mary Landrieu and Alaska Senator Lisa Murkowski would get rid of the cap and allow states to receive the $500 million more quickly. All coastal states would also be included in addition to the current four.
Texas Governor Rick Perry explained at OTC that since the BP oil spill, the industry has become much safer due to new protections. South Carolina Governor Nikki Haley also added that with these new provisions, states that currently benefit from summer tourism would be able to utilize their natural resources as well.
"I urge the president to join us (and) make government a partner with us—not an adversary," North Carolina Pat McCrory said at the conference. "Let the states unleash these natural resources to create jobs and (help) the economy."
Should the bill pass and offshore drilling companies grow with the increased revenue, investing in oilfield insurance can help offshore drilling companies remain safe and secure, a necessity in the wake of the BP oil spill.