Florida Senate - 2009 SM 504 By Senator Oelrich 14-00399-09 2009504__ 1 Senate Memorial 2 A memorial to the Congress of the United States, 3 urging Congress to support the expiration and removal 4 of moratoria prohibiting exploration and production of 5 domestic supplies of oil and natural gas in federal 6 waters surrounding Florida and to include Florida in 7 revenue sharing resulting from the production of oil 8 and natural gas in federal waters surrounding Florida. 9 10 WHEREAS, across party lines, Florida's representatives in 11 Congress have long recognized the dependence of the state's 12 tourist and agricultural economies on access to reliable and 13 affordable petroleum products derived from oil and natural gas, 14 and 15 WHEREAS, Florida consumes approximately 28.5 million 16 gallons of gasoline and diesel fuel per day and 10.4 billion 17 gallons of gasoline and diesel fuel annually, and 18 WHEREAS, Florida is expected to increase total utility 19 generation capacity derived from natural gas from 30 percent in 20 2005 to over 44 percent in 2014 to meet increasing electricity 21 demand in the state, and 22 WHEREAS, Florida's fertilizer industry is heavily dependent 23 on access to reliable and affordable natural gas, and 24 WHEREAS, the United States has recently experienced record 25 high prices for gasoline, diesel fuel, and natural gas, and 26 WHEREAS, global demand for oil has risen from 77 million 27 barrels per day in 2001 to 85 million barrels per day in 2007, 28 and 29 WHEREAS, global demand for oil and natural gas is projected 30 to increase 45 percent by 2030, according to the Energy 31 Information Agency, and 32 WHEREAS, the United States produces just 41 percent of the 33 oil its citizens and residents consume and consumes 25 percent 34 of the oil produced globally, and 35 WHEREAS, the United States Department of the Interior 36 conservatively estimates that 118 billion barrels of oil, enough 37 to power 65 million cars for 60 years, is recoverable from 38 domestic sources, and 39 WHEREAS, the United States Department of the Interior 40 conservatively estimates that 651 trillion cubic feet of natural 41 gas, enough to power 60 million homes for 160 years, is 42 recoverable from domestic sources, and 43 WHEREAS, the United States Department of the Interior 44 conservatively estimates that 233 trillion cubic feet of natural 45 gas is recoverable from federal waters in the Gulf of Mexico, 46 and 47 WHEREAS, development and production plans filed with the 48 United States Department of the Interior in 1997 confirm 49 potential resources for the daily production of up to 450 50 million cubic feet of natural gas in a small portion of the 51 Eastern Gulf of Mexico off the Florida Panhandle known as Destin 52 Dome, and 53 WHEREAS, technological advances and environmental 54 partnerships have enabled the energy industry to achieve new 55 levels of safety and ecological protection while producing oil 56 and natural gas in federal waters, and 57 WHEREAS, domestically, the Outer Continental Shelf produces 58 1 million barrels of oil per day, and, according to the National 59 Academy of Sciences, since 1980 less than 0.001 percent has 60 slipped into the sea, which is less than the amount of naturally 61 occurring oceanic seepage, and 62 WHEREAS, Hurricanes Katrina and Rita, which battered the 63 Gulf of Mexico and nearly 3,000 oil platforms directly in their 64 paths with 200-mile-per-hour winds and 100-foot seas in 2005, 65 caused no loss of life among offshore energy industry personnel 66 or significant spills from any offshore oil wells on the Outer 67 Continental Shelf, according to the United States Department of 68 the Interior, and 69 WHEREAS, Hurricanes Ike and Gustav followed very similar 70 paths to Hurricanes Katrina and Rita and caused far less damage, 71 attesting to the progress made by the industry in implementing 72 enhanced oil platform and infrastructure standards, and 73 WHEREAS, Florida continues to have a successful history of 74 oil and natural production in environmentally sensitive areas 75 such as the Everglades dating back to 1943, and 76 WHEREAS, Florida oil and natural gas fields have produced 77 more than 548 million barrels of oil and more than 630 million 78 cubic feet of natural gas since 1943, and 79 WHEREAS, in exchange for a 125-mile drilling buffer in the 80 Gulf of Mexico, Florida declined to participate in the 2006 Gulf 81 of Mexico Energy Security Act that provides 37.5 percent of all 82 federal oil and natural gas revenues, including lease sales and 83 production royalties, to Gulf Coast States, and 84 WHEREAS, the initial Eastern Gulf of Mexico Sale 224 in the 85 2006 Gulf of Mexico Energy Security Act generated in excess of 86 $64 million, 37.5 percent of which went directly to Texas, 87 Louisiana, Mississippi, and Alabama, and 88 WHEREAS, revenue sharing prescribed in the 2006 Gulf of 89 Mexico Energy Security Act will extend to all new production in 90 the Gulf of Mexico in 2017, and, as a result, Louisiana 91 estimates it will generate more than $650 million per year, and 92 WHEREAS, without a change in policy, Florida will continue 93 to be excluded from sharing additional revenues and royalties 94 related to lease sales and production royalties associated with 95 the development of oil and natural gas resources in the Gulf of 96 Mexico, NOW, THEREFORE, 97 98 Be It Resolved by the Legislature of the State of Florida: 99 100 That the Congress of the United States is urged to support 101 the expiration and removal of moratoria prohibiting exploration 102 and production of domestic supplies of oil and natural gas in 103 federal waters surrounding Florida and to include Florida in 104 revenue sharing resulting from the production of oil and natural 105 gas in federal waters surrounding Florida. 106 BE IT FURTHER RESOLVED that copies of this memorial be 107 dispatched to the President of the United States, to the 108 President of the United States Senate, to the Speaker of the 109 United States House of Representatives, and to each member of 110 the Florida delegation to the United States Congress.