The future of energy independence

On April 20, an explosion off the Gulf Coast on an oil rig leased by British Petroleum marked the unfortunate beginning of the worst oil spill in our nation’s history.

More than a month later, while we’re all thankful for our new knowledge of oil rigs, the glaring problem remains that neither BP nor the federal government seems to know all that much more than we do.

People have every right to be frustrated at BP and by the slow response of the Obama administration, but let’s be clear. Deep-water oil drilling has always been risky, and it’s obvious that neither the federal government nor the oil companies were prepared for the magnitude of this spill.

But the fact is that domestic oil production must be part of our overall energy strategy. Yes, drilling can be dangerous and yes, mistakes were made in our efforts to halt the unprecedented damage of this spill, but let’s not let this deter our plans for energy independence.

As Interior Secretary Ken Salazar pointed out, a commitment to offshore drilling is necessary for a “new energy future.” We must learn from our mistakes and take steps to make sure we are better prepared, both economically and geologically, for future disasters.

Under current federal law, BP is legally required to pay only $75 million for a spill cleanup. Now that we have a better grasp of the economic consequences of this spill, it’s becoming increasingly clear that the federal accountability cap of $75 million won’t even begin to cover the costs. BP has reported that the cost of its efforts is already hovering around $930 million, and that’s just for all the failed attempts we’ve heard about each day — containment domes, kill switches, underwater robots, etc. Lawmakers have estimated that the total cost of the cleanup will be in excess of $10 billion.

BP has publicly committed to compensating businesses and individuals who suffer economic losses as a result of the spill. If we are going to maintain the legitimacy of such an important industry, we need to be properly prepared to deal with issues of this scale. Laws regarding a corporation’s financial responsibility should be corrected with improved contingency plans.

In order to continue drilling for oil in this country and alleviate our dependence on foreign resources, we must be prepared for the very real possibility of spills. The consequences are too far-reaching for us not to have some type of emergency funds available. A lack of these funds will leave the American people with the huge cost of cleaning up as well as a diminished ability to respond to disasters, which sounds all too familiar as the current crisis continues to unfold.

If we implemented an “oil spill contingency plan” and forced oil companies to accumulate funds that would be available for use immediately after spills, drilling would become a safer business.

Both Republicans and Democrats have accused President Obama and his administration of being too hands-off and apathetic about the concerns of the Gulf Coast. Democratic strategist and Louisiana’s own “Ragin’ Cajun,” James Carville, an Obama supporter, publicly bashed the president, saying, “Man, you got to get down here and take control of this! Put somebody in charge of this thing and get this moving! We’re about to die down here!”

There is no doubt in my mind that many residents of the Gulf Coast are disappointed by the response of the administration. However, Obama has admitted that he’s made mistakes. Let’s stop the blame game and focus on more progressive policies for the future. Again, if the liability cap is not raised or lifted altogether and no emergency fund is set up, we will only be setting ourselves up for disaster.

Just one day after Carville's comments, Obama announced a six-month extension of the moratorium on offshore drilling. During that time, a presidential commission will continue to investigate the causes and effects of the spill. The extended moratorium will temporarily impede offshore drilling expansion, but it’s necessary in order to properly address the safety and environmental concerns that surround the essential practice of offshore drilling.

Let's hope drilling will emerge as a safer, more regulated practice. Our energy independence is at stake.

Al D’Amato, a former U.S. senator from New York, is the founder of Park Strategies LLC, a public policy and business development firm. Comments about this column? ADAmato@liherald.com.