Bush asks Congress to clear way for offshore oil drilling

WASHINGTON (CNN) -- President Bush asked Congress on Wednesday to permit drilling for oil in deep water off America's coasts to combat rising oil and gas prices.

"There is no excuse for delay," the president said in a Rose Garden statement.

The proposal met opposition from governors from California, New Jersey North Carolina, and New Mexico. "We are in this situation because of our dependence on traditional petroleum-based oil," California Gov. Arnold Schwarzenegger, a Republican, said in a statement, according to The Associated Press.

"Our $35 billion economy is driven by tourism and the use of the shore," AP quoted New Jersey Gov. Jon Corzine, a Democrat, as saying.

"It's a very bad idea. First of all, it will take 30 years before it affects gas prices -- lowering them -- and it will take 10 years to start the drilling," New Mexico Governor and former U.S. Energy Secretary Bill Richardson, a Democrat, told CNN. "The answer is a long-term policy that deals with -- substantial policies that promote -- conservation, fuel efficiency in vehicles, an emphasis on renewable energy." Watch Richardson explain his position »

"It's doesn't work for states to decide. If the state above or below you has a problem it affects your shores as well," North Carolina Gov. Mike Easley, a Democrat said, according to AP. "It's too much squeeze for the juice when you look at real estate on the coast, recreational fishing and tourism that could be adversely affected by some problem."

Virginia and South Carolina have largely supported lifting the moratorium, AP reported.

Bush also renewed his demand that Congress allow drilling in Alaska's Arctic National Wildlife Refuge, clear the way for more refineries and encourage efforts to recover oil from shale in areas such as the Green River Basin of Colorado, Utah and Wyoming.

Bush said that the basin potentially contains more than three times as much recoverable oil as Saudi Arabia's proven reserves and that the high price of oil makes it profitable to extract it. Watch Bush make a case for new drilling »

"In the short run, the American economy will continue to rely largely on oil, and that means we need to increase supply here at home," Bush said, adding that there is no more pressing issue for many Americans than gas prices. Map: See where drilling is and isn't allowed »

Meanwhile, Wednesday at an energy forum in Springfield, Missouri, Sen. John McCain continued his pitch for offshore drilling.

"In the short term, this requires more domestic production, especially in the Outer Continental Shelf. We need to encourage production in ways that are consistent with sensible standards of environmental protection. And in states that permit exploration, there must be a sharing of benefits between state and federal governments. But as a matter of fairness to the American people, we must assure affordable fuel for America by increasing domestic production," the presumed Republican presidential nominee said.

An ally of McCain, Florida Gov. Charlie Crist, has reversed his opposition to oil exploration off the state's beaches, saying the issue is about local control, AP reported.

"I think that not having that moratorium, blanket moratorium, and letting states rights be recognized, if you will, certainly is appropriate," AP quoted Crist as saying.

The White House estimates that there are 18 billion barrels of oil offshore that have not been exploited because of state bans, 10 billion to 12 billion in the Arctic National Wildlife Refuge and 800 billion barrels of recoverable oil in the Green River Basin. iReport.com: Is drilling the best option?

However, much of the U.S. oil is difficult or impossible to extract under current law.

As for gas prices, resuming offshore exploration would not be a quick fix.

"If we were to drill today, realistically speaking, we should not expect a barrel of oil coming out of this new resource for three years, maybe even five years, so let's not kid ourselves," said Fadel Gheit, oil and gas analyst with Oppenheimer & Co. Equity Capital Markets Division.

But it almost certainly would be profitable.

Candida Scott, an oil industry researcher at Cambridge Research Associates, said oil needs to be priced at $60 a barrel or more to justify deep-shelf drilling. With oil now selling for $134 a barrel, companies are almost assured of profiting from offshore drilling, Scott said.

"For years, the president has pushed Congress to expand our domestic oil supply, but Democrats in Congress have consistently blocked such action," White House press secretary Dana Perino said before Bush spoke.

She added, "As with several existing Republican congressional proposals, he wants to work with states to determine where offshore drilling should occur, and also for the federal government to share revenues with the states. The president believes Congress shouldn't waste any more time." Watch interests compete over oil »

Democrats were quick to reject Bush's proposal.

"After eight years, President Bush and [Vice President] Dick Cheney have turned the GOP into the Gas and Oil Party. That's the legacy that they are going to leave," said Rep. Edward Markey of Massachusetts, chairman of the House Select Committee on Energy Independence and Global Warming.

"The White House has become a ventriloquist for the oil and gas industry, repeating the requests of the oil and gas industry: that they be allowed to destroy the most pristine areas of our country," Markey added.

Congressional Democrats introduced a bill last week to compel oil companies to begin utilizing federal land they already lease.

"Oil companies are sitting on 68 million acres they have already leased from the American people for the purpose of oil and natural gas production," said Sen. Bob Menendez, D-New Jersey.

"It is about time they use these resources already at their disposal instead of waiting for more federal handouts and pushing to drill in the Arctic National Wildlife Refuge or up and down our coasts," he added.

Opponents of offshore drilling say it would harm aquatic ecosystems by eroding wetlands, contaminating the water with chemicals, polluting the air, killing fish and dumping waste.

McCain made clear that he favors continuing the ban on drilling in the Arctic National Wildlife Refuge.

"Quite rightly, I believe, we confer a special status on some areas of our country that are best left undisturbed. When America set aside the Arctic National Wildlife Refuge, we called it a 'refuge' for a reason," he said.

McCain's plan would let individual states decide whether to explore drilling possibilities.

According to his campaign, presumptive Democratic nominee Barack Obama wants to invest $150 billion over the next 10 years to establish a green energy sector, create a national low-carbon fuel standard to ensure that the fuel is more efficient, and invest in clean energies like solar, wind and biodiesel.

New drilling already could be in the works 50 miles off the Florida coast -- by Cubans, not Americans, with help from China and other allies. A rich undersea oil field stretches into Cuban waters near the Florida Keys.

"The people I represent can't understand how we can possibly let China end up with rights to our oil and gas in the Gulf of Mexico because we say we're not going to do it and they say, 'OK, we'll do it, and we'll work with Cuba, if we have to, to do it,' " said U.S. Rep. Zach Wamp, R-Tennessee. "That's really asinine."

CNN's Ed Henry, Richard Greene, Brianna Keilar, Hussein Saddique and Ali Velshi contributed to this report.

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