Florida Business Endorses Drilling in Eastern Gulf of Mexico

One of Florida's most influential business groups endorsed a plan to expand oil and gas drilling in the eastern Gulf of Mexico.

Associated Industries of Florida said that it supports federal legislation introduced by Representative Richard Pombo, (R-CA.), which was negotiated with Florida Governor Jeb Bush, to open the eastern Gulf to exploration and drilling, while maintaining a 125-mile barrier around the entire Florida.

"Our businesses operate in a fiercely competitive global economy," said Barney Bishop, president of the Tallahassee-based lobbying group, which represents 10,000 members. "To remain viable, we must make sure they have a reliable and affordable energy supply. This is hardly the case right now."

Bishop was accompanied at a news conference by representatives of what he called Florida's major industries, including phosphates, transportation, construction, chemicals and plastics. Noticeably absent were representatives from the tourism industry -- the state's largest -- which has objected to drilling near Florida's coast.

"Unless they can guarantee us no oil spills, it would be a hard thing to support," said Missy Pike, head of the Tampa Bay Beaches Chamber of Commerce, which has 800 members.

Pike cited the 1993 spill that fouled Pinellas beaches after two barges collided in the Tampa Bay ship channel.

"We all know how that affected us," she said. "The business loss was harder to get over than a hurricane."

Bishop acknowledged some of his members from the hospitality industry are "going to be concerned" with his group's position. But "the truth of the matter is, it's a two-edged sword," he said.

Higher oil prices also negatively affect tourism, Bishop said. And he stressed that the hurricanes that recently churned up the Gulf had no effect on wells in the crowded western fields.

Drilling in the Gulf of Mexico is restricted to a portion of a field known as Lease Sale Area 181, which is approximately 100 miles south of Pensacola. The federal moratorium on the Eastern Gulf expires beginning in 2007.

Both of Florida's U.S. senators, Republican Mel Martinez and Democrat Bill Nelson, say they oppose drilling near Florida for environmental and military concerns.

AIF's Bishop cited federal government statistics suggesting the Gulf contains enough natural gas to heat more than 100 million homes for 60 years, and enough petroleum to fuel almost 85 million cars for 35 years.

"Florida is an enormous consumer of energy," Bishop said. "We're a major contributor to the nation's energy problems. Now is the time for Florida to step forward and be part of the energy solution."