Despite Need For Money, California Rejects $1 Billion Deal With Oil Companies
Even though the State of California found itself in the worse financial crisis in history less than 24 hours ago, state lawmakers rejected a proposal that would have allowed for offshore oil drilling off the coast of California for the first time in 40 years.
With billions of dollars in cuts to education, social services, state parks, and other programs, the legislature in Sacramento finally passed a budget that will hopefully close the $26 billion deficit. But fighting off the temptation for lawmakers to allow the oil industry to pitch in return for some oil drilling, was a victory to environmental groups in California.
Rodger Schlickeisen, President and CEO, Defenders of Wildlife, wrote on the National Journal Online on Friday about California’s disastrous history with the oil drilling industry.
The history of oil drilling in California had already experienced its share of hundreds of big accidents, nasty political payola scandals, and assorted oily messes when in 1969, a loss of well control on Union Oil’s “Platform A” in federal waters fractured the seafloor. Dead wildlife was piled high on tarred beaches, the region’s economy was decimated for years, and the somber silence of the waveless black ocean still haunts local residents. Then-president Richard Nixon was so moved by the Santa Barbara disaster that he set aside a section of federal waters off of the City of Santa Barbara “in perpetuity” as a symbolic compensation to local residents.
The state of California would have received $1.8 billion in revenues from the oil drilling deal. “These funds will help to defray the state’s budget shortfall as well as increase America’s energy security,” argued Jack Gerard, President and CEO, American Petroleum Institute.
But environmental groups cheered that that budget was passed without the powerful influence on the big oil companies and promised to keep a watchful eye on legislators who try to make deals behind close doors.
“The State Assembly [on Friday] rejected the disastrous idea of allowing new oil drilling off the California coast. The fact that this proposal was even considered and negotiated behind closed doors is very troubling. And given that an offshore drilling proposal got as far as it did suggests that the state budget process is broken and must be reformed,” said Victoria Rome, Deputy Director of the National Resources Defense Council.


Another reason why the state of California is broke and business is running. The environmental laws in this state are outrageous.
I agree with Fontana, again the Environmentalists are putting their agenda before kids education and our personal security. Let’s not forget, it is the environmental groups that have created a Congress California Drought devestating over 500,000 acres in Central California, and causing approximately 60,000 plus in job losses. Now we’re losing the possibility of over a Billion dollars? PLEASE!!!! Someone stop the MADNESS!!!!