Governor Easley Urges congress To Save American Oil For American Security
- States Should Control The Leases To Their Oil, Not Private Oil Companies

FROM THE OFFICE OF THE GOVERNOR

September 17, 2008

Contact: Seth Effron
Phone: (919) 733-5612


Raleigh - Gov. Easley today asked North Carolina’s congressional delegation to make sure North Carolina and other states own the rights to new offshore oil supplies rather than hand them over to private oil companies.

“We should keep American oil for American security,” said Easley.

Yesterday the House passed legislation that would open up new offshore drilling off the coast of North Carolina and other states and give the leases to private oil companies. The Senate will consider similar proposals this week, and ultimately, a House-Senate conference will decide on the final measure.

Easley urged Congress not to give access to new United States oil reserves to private oil companies whose only focus is making a profit, but instead to provide the states with leasing rights. Easley said states will not make decisions based on short term profit – their sole responsibility is to protect their citizens and their economic security. Once these leases are developed, the United States would lose its last reserves and thereafter be totally dependent on foreign oil.

“If we are getting low on oil, why in the world would we give away our oil reserves,” said Easley. “Why would we give our oil to private companies so they can sell it back to us?” he said.

“I frankly do not understand Congress’ logic,” Easley said. “This would turn a manageable problem into a crisis. We need to look at our North Carolina offshore oil reserves like a savings account. It’s the last place you go to get oil, as it’s a rainy day fund.”

Easley said that the legislation claims to require the leases to be used for United States consumption, but all this means is that American consumers will use up our own oil first, and then return to purchasing foreign oil. “Then what do we do when the nations of the Middle East raise the price or hold the supply?” Easley said. “We would have no American reserve to fall back on.”

The text of the letter Gov. Easley sent to North Carolina’s Congressional Delegation follows:

Various legislative proposals, including the bill passed yesterday by the House and several pending in the Senate, would open offshore oil production in North Carolina and other coastal states. I am requesting that the legislation that is ultimately adopted allow North Carolina and other states to acquire the lease permits themselves, without federal fee. The waiver of fees is justifiable since the state is in a unique fiduciary position to protect the interests of our citizens, unlike private oil companies.

We must realize that these are precious resources which affect our economic and national security. Therefore, it is in the best interest of the states and the United States to maintain control over these resources. The proposed legislation as written would simply allow private oil companies to take this resource and blend it into the world oil supply. No legislative language can prevent this fungible product from entering the international market, leaving American economic and security interests vulnerable.

North Carolina's intention is to maintain control over the exploration, drilling and production of this petroleum to guarantee that it benefits our people. We are in the best position to know when this reserve is most needed.

Otherwise, in the current legislation, private oil companies could drill and drain these last reserves off our coast long before they have exhausted the supply elsewhere. This would leave America inexplicably vulnerable, as other nations emerge economically and demand more of the world’s oil supply.

Whether we oppose or support offshore drilling, Congress is moving forward on this legislation. I believe it is imperative that we maintain control over these final reserves as we transition to alternative fuels.

Quite simply, American oil must be used for American interests.

I appreciate your interest and cooperation on this important issue.