Senate Backs Expanded Offshore Drilling

In this undated photo released by Mexico's National Oil Company, PEMEX on June 13, 2006, a boat nears an offshore oil rig in the gulf of Mexico near the coast of Campeche, Mexico. Monday, the Senate is expected to vote whether to expand oil and gas development in the central Gulf, opening for drilling 8.3 million acres now off limits. Last month, the House approved an even broader measure that would lift the quarter-century drilling moratorium in Pacific and Atlantic coastal waters, although states would be able to prohibit drilling if they choose to do so. (AP Photo/PEMEX, FILE) (AP)

"The only remaining question is just how much relief will Congress grant," said Pombo.

Republican senators hailed their bill as a major step toward increasing domestic oil and natural gas production.

"It brings more American energy to American consumers," declared Majority Leader Bill Frist, R-Tenn. With more supply of natural gas, prices may drop, he said.

Domenici called it "welcome news for the people of the United States" _ for homeowners facing high heating bills as well as for manufacturers and chemical companies that have seen natural gas costs soar.

Never mind that no oil or gas would flow from the new area for four or five years, perhaps longer.

At best "this will supply a small amount of gas years from now," said Sen. Mark Dayton, D-Minn., who voted against the bill because GOP leaders maneuvered to bar amendments. Dayton wanted a provision that would expand support for ethanol.

Many of those who opposed the bill _ including Sen. Olympia Snowe of Maine, the only Republican to vote no _ feared it could lead to oil and gas drilling along the Atlantic and Pacific coasts, now protected by the moratorium.

While 18 Democrats joined Republicans in support of the bill, only Sen. Mary Landrieu, D-La., joined the Republicans at the news conference.

It was her time to bask in the glory _ and the Democratic leadership wanted it that way.

She had pushed to increase the royalties from offshore oil and gas for four Gulf coast states that have rigs in nearby waters. The bill would give the four states 37.5 percent of future royalties, compared to less than 2 percent today _ a huge windfall for Louisiana.

Louisiana would receive $600 million a year 10 years from now and more in later years, compared to about $30 million to $40 million a year under current rules, according to Landrieu's staff.

Eventually the four states could share as much as $12 billion to $15 billion a year under the bill, according to an analysis by Sen. Jeff Bingaman, D-N.M., who opposed the royalty changes.

Senate Democratic leader Harry Reid's support for the bill was said to be largely to help Landreiu take something back to Louisiana voters and get re-elected in 2008, when her fate may determine whether Democrats regain a Senate majority.