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Secretary of the Interior Ken Salazar today set aside the Bush administration's midnight timetable for a vast expansion of offshore drilling. Salazar sharply rebuked the "headlong rush of the worst kind" put in place in Bush's final week in office. Announcing that "the time for reform has arrived," Salazar explained that he "will extend the public comment period by 180 days, get a report on offshore energy resources, hold regional conferences, and expedite rulemaking for offshore renewable energy resources": I intend to do what the Bush Administration refused to do: build a framework for offshore renewable energy development, so that we incorporate the great potential for wind, wave, and ocean current energy into our offshore energy strategy. The Bush Administration was so intent on opening new areas for oil and gas offshore that it torpedoed offshore renewable energy efforts.

Offshore drilling became a campaign issue as gasoline prices hit $4 a gallon. Public opinion polls show that not only do Americans want their elected leaders to do something about it, but they think drilling for oil on the continental shelf is a great idea.

Saying he needed to restore order to a broken process, U.S. Secretary of the Interior Ken Salazar this week announced his strategy for developing an offshore energy plan that includes renewable energy. On Friday, January 16, its last business day in office, the Bush Administration proposed a new five year plan for offshore oil and gas leasing. The proposal was actually published in the Federal Register on January 21, the day after the Obama Administration took office. The deadline for public comment that the Bush Administration established - March 23, 2009 - does not provide enough time for public review or for wise decisions on behalf of taxpayers, the Secretary said.

With the aim of ending a regulatory turf war, U.S. government agencies on Tuesday said they would work together to cut red tape and spur development of offshore renewable energy projects. Under the agreement, the Interior Department will have jurisdiction over offshore wind and solar energy projects, while the Federal Energy Regulatory Commission will oversee offshore projects that generate electricity from wave and tidal currents.

Last week, Secretary of the Interior, Ken Salazar, hosted the last of 4 public forums around the country to gather input on offshore drilling and offshore renewable energy development. Choosing to end in San Francisco means he is going back to Washington with a resounding "No" in his ears. "No" to offshore drilling and "Yes" to investing in renewable energy, and any other new green technology San Francisco start-ups can figure out. All the California elected officials on the dais (Boxer, Lee, Speire, Napolitano, Woolsey, Lt Governor Garamendi) and Oregon governor Kulongoski made very clear, and sometimes even passionate, statements to the effect that CA needs and values its coastline the way it is, and the potential output of oil (estimated 1% of US daily consumption by 2030) comes no where near to justifying the risk posed to its economy and ecosystem.

"As the Deepwater Horizon rig disaster continues to unfold, the peak oil community has a "teachable moment" in which it can illuminate the reality of our energy plight. The public has had a crash course in the challenges of offshore oil, and learned a whole new vocabulary. They are more aware than ever that the days of cheap and easy oil are gone. What they do not yet grasp are the challenges in transitioning from fossil fuels to renewables. The Greens (anti-fossil fuel agitators) want to end offshore drilling, but don't realize that their alternatives are in the wrong scale or the wrong time frame to make a difference. The Browns (the fossil fuel industry) are in full damage-control mode while rapidly losing the public trust. Meanwhile, the politicians are focused on who's to blame and who will pay, while skirting the fundamental problem of our addiction to oil."

The Interior Department will announce new rules today that clear the way for the first offshore wind turbines to be erected along the Atlantic Coast. The rules will set long-awaited guidelines for offshore leases, easements and royalty payments that the Bush administration worked on for years but did not complete.

Less than a week after the Interior Department published the findings of a report claiming that 25% of the nation's electricity could be supplied by offshore wind farms, the Department also reached an agreement with the Federal Energy Regulatory Commission (FERC) over how the two agencies would handle the permitting and licensing of all types of renewable energy development on the Outer Continental Shelf (OCS) of the United States. On Thursday, Secretary of the Interior Ken Salazar and Federal Energy Regulatory Commission Chairman Jon Wellinghoff signed a memorandum of understanding (pdf) that establishes a streamlined process by which Interior's Minerals Management Service and the FERC will lease, license and regulate all renewable energy development activities on the OCS. According to Interior Secretary Salazar, the agreement will spur the development of clean, renewable energy, which he called, "the growth industry of the 21st Century," adding that, "Our nation's economic future demands we lead that competition."

A federal appeals court on Thursday blocked Royal Dutch Shell from drilling oil wells off Alaska's North Slope after finding that the Interior Department had failed to conduct an environmental study before issuing the company's drilling permit. In a long-awaited ruling, the court said that the Minerals Management Service, the federal agency in charge of offshore leasing, had violated the 1970 National Environmental Policy Act by failing to take a "hard look" at the impact that offshore drilling would have on bowhead whales in the Beaufort Sea as well as indigenous communities on the North Slope.

John McCain again pushed for offshore drilling Monday, and suggested it could provide relief to American consumers "within a matter of months." "There are some instances within a matter of months, they could be getting additional oil. In some cases, it would be a matter of a year," McCain said at a press conference in Bakersfield, California. "In some cases, it could take longer than that depending on the location and whether or not you use existing rigs or you have to install new rigs. But there is abundant resources in the view of the people who are in the business that could be exploited in a matter of months."

A federal appeals court today rejected Bush administration plans to expand offshore drilling in Alaska. The three-judge panel agreed with environmentalists, saying the Bush-era Department of Interior's plan to open drilling in Alaska's Chukchi and Beaufort Seas failed to consider impacts on marine life and the environment. The court has ordered the Interior Department, now run by Ken Salazar, to conduct a proper analysis of environmental impacts and risks before moving ahead with any plans for offshore drilling in these sensitive areas. The Chukchi and Beaufort Seas are home to approximately one-tenth of the world's total polar bear population, along with walruses, seals, and whales.

Vote to pass a bill that expands offshore drilling leases and extends renewable energy tax credits. Official Title of Legislation: HR 6899: To advance the national security interests of the United States by reducing its dependency on oil through renewable and clean, alternative fuel technologies while building a bridge to the future through expanded access to Federal oil and natural gas resources, revising the relationship between the oil and gas industry and the consumers who own those resources and deserve a fair return from the development of publicly owned oil and gas, ending tax subsidies for large oil and gas companies, and facilitating energy efficiencies in the building, housing, and transportation sectors, and for other purposes. Highlights:

Ah, intermittency, one of the frequently cited disadvantages to wind power. Because the wind doesn't blow all the time, and you can't store energy, wind projects can't produce a steady stream of energy 24/7, hence they are regarded as "intermittent" power sources. So what's the solution to intermittency? One is to put plants in high wind regions, such as offshore where the wind blows more frequently. And another solution is the hybrid project: teaming wind up with a steadier source of baseload power than can come on line when the wind's not blowing.

Despite the financial crisis, it seems that wind power is moving up the political agenda everywhere. But as China and the United States continue to develop their wind resources on the ground, a question for Europe is how many windmills can be built out at sea. Inland sites are much less available in Europe than in some other parts of the world. Building windmills at sea also helps to overcome not-in-my-backyard protests from homeowners who complain that windmills are ugly and noisy.

US lawmakers Tuesday sought to overturn a decades-old ban on offshore drilling voting in favor of a new energy bill which has been spurred by spiralling oil prices. The new bill, which was put forward by the majority Democrats in the House of Representatives, was approved by 236 votes to 189. It would allow drilling off the US coastline up to a distance of between 50 to 100 miles (80 to 160 kilometers) overturning a 1981 federal moratorium.

This week, the House of Representatives will consider the Comprehensive American Energy Security and Consumer Protection Act. The bill would protect our coasts up to 50 miles off shore, but then give states the option of allowing offshore drilling 50 miles off the coastline.

For weeks, pressure has been mounting in Congress to approve more domestic oil drilling, but House Speaker Nancy Pelosi has held the line, using her power to block a vote on offshore drilling.

26,400 turbines to wean Britain off its carbon habit Revolutionary plans for a massive expansion of offshore wind farms have been unveiled in a £100bn project designed to usher in a new era of green energy for Britain. A quarter of the country's electricity needs would be met through wind power by 2020 under the strategy, with the construction of 6,400 turbines within nine sites dotted around the coast. The programme amounts to the biggest energy supply shake-up since the discovery of the North Sea oil and gas fields more than 40 years ago.

26,400 turbines to wean Britain off its carbon habit Revolutionary plans for a massive expansion of offshore wind farms have been unveiled in a £100bn project designed to usher in a new era of green energy for Britain. A quarter of the country's electricity needs would be met through wind power by 2020 under the strategy, with the construction of 6,400 turbines within nine sites dotted around the coast. The programme amounts to the biggest energy supply shake-up since the discovery of the North Sea oil and gas fields more than 40 years ago.

"Democrats are trying to take control of public anger over the BP spill, and that means moving the debate to energy legislation. Harry Reid is now urging chairmen to pass cap and trade out of committee by July, and to include a strong section regulation offshore drilling and associated liabilities. Remember when the compromise to get the bill passed was going to be moreoffshore drilling? "

My top 10 oil industry stories of 2008: 1. Crude prices soar in 1H, WTI tops $147, Brent right behind 2. Prices collapse below $50 in 2H as demand retreats 3. Ethanol's struggles: VeraSun bankruptcy, others barely profitable, spreads collapse 4. Push begins to lift offshore drilling ban in US; Obama and McCain differ on approach 5. Capital crunch and low prices lead to deferred investment 6. Shale gas supply in US surges, a new factor in supply/demand balance 7. Credit crunch slows activity for once free-wheeling traders 8. Diesel surges, gasoline/naphtha plunge; traditional cracks skewed 9. Russian oil output to fall in 2008, first time in a decade 10. Brazil subsalt finds continue to lift nation's upstream prospects