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US House Passes Ocean Drilling Bill; Calls for Canadian Model for Oil Shale Development

Last week the US House of Representatives passed H.R. 4761—the Deep Ocean Energy Resources Act of 2006— by a vote of 232-187. The bill lifts a 25-year ban on oil and natural gas drilling off most of the Pacific and Atlantic coasts and the eastern part of the Gulf of Mexico.

The legislation specifically removes all leasing bans beyond 100 miles and permits leasing 50 to 100 miles offshore unless states protest. It bans all oil and gas drilling within 50 miles of state coasts unless states chose otherwise.

The legislation, which eliminates the requirement for a comprehensive inventory of Outer Continental Shelf (OCS) resources, shares the Federal leasing receipts with the coastal states off which the drilling will occur: 75% for projects out to four marine leagues (13.8 miles, 22.2 kilometers) from the coastline and 50% for projects more than four marine leagues from the coastline.

The bill also calls for the United States to use Canada’s approach to oil sands development as a model for the development of the westeren oil shale. Canadian oil sands producers pay little in royalties until several years into development.

The bill now goes to the Senate for consideration.




I wasted couple of years of my life trying to push for biomethane production in US/Canada. I’ll tell you what: biomethane is quite expensive and inefficient way to generate quite cheap fuel. Yet when it is by-product of mandatory treatment of organic slurries, such as sewage sludge, dairy, poultry, and especially swine manure, it is free. Some addition of grass clipping and wet agricultural wastes helps the process and increases methane yield. As such at least 5% of US fossil fuel energy will be eventually biomethane, but I am personally tired to wait when EPA will force mandatory waste treatment to American livestock farmers, like it is doing now for landfills. And it is Denmark, not Sweden, which is the world leader in biomethane. The reason is quite simple: Denmark is huge pork producer, and number of swines cultivated in the country is three times bigger then it human population. They kind of have to be leaders in biomethane production.


Having a lot of fun of our private/public discussion.

Just a post scriptum. When governor Davis was elected in California, prices for electricity (!!!) skyrocketed and it was great supply crisis with black-outs and stuff. All seized when he was impeached. So my question is: whose puppet was this mini-Gore, GE or South-California-Edison?

Happy 4-th of July to every one!

Mr. Prius

Display the George W. Exxon Mobil / USA flag proudly.

Roger Pham

Wasn't it Emron who was discovered later that manipulated the electrical shortage in SoCal and trying to raise the rates? Due to rate regulation, the power company can't raise the price to reflect actual cost of energy. Energy price regulation at a low level to appease to the public is entirely wrong.
Please correct me if I'm wrong on the above.
Happy 4th of July.


The Enron gaming in California was caused long before Davis took office. Pete Wilson, the governor before Davis signed deregulation into law around about 1995, not to take effect until 2000. By the time Davis took office the time bomb was about to go off. Davis was the one that saved California from a complete meltdown, but the true story gets distorted to fit whatever some people seem to want to believe.
If anyone wants the truth about this, I suggest you research it before repeating anything you might have heard.

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