The oil drilling controversy: The fight over fossil fuel

by Mike Luery

There's a measure to raise billions of dollars for California this year, without raising taxes. If passed, it could provide extra funding for education, health and welfare.
So why is this proposal causing controversy at the Capitol?

The answer is oil -- the lubricant that could be the key to helping the Golden State get back in the black -- or at least closer to eliminating California's multi-billion dollar deficit - without taking more money from taxpayers.
"Based on the price of oil in today's value, my bill would be worth somewhere between $ 14 and $ 16 bn out of the state's total budget shortfall of $ 21 bn," said Chuck DeVore, a Republican Assemblyman from Irvine. DeVore told he believes there are at least one bn barrels of oil within 3 miles of California's coast. He wants the state to open up new oil leases, using slant drilling from existing platforms to the shore. The plan gives incentives for oil companies to pay royalties now for oil revenue in the future, generating immediate cash and jobs for California.

"My proposal would create seven thousand oil field jobs, good paying jobs," Chuck DeVore stated. "And we wouldn't be sending our money to places like Venezuela and Saudi Arabia and Iran," he added.
But environmentalists are concerned that more offshore drilling could mean more damage for California's coast. They say California should raise taxes on oil producers instead.
"We have plenty of drilling going on in existing operations," said Michael Endicott of Sierra Club California, "Focus on that," he insisted. "Get California's fair share of that severance tax which every other oil producing state charges. And then move forward into the other technologies."

Environmentalists say other technologies like wind and solar provide energy solutions -- and jobs that are much better for California. But the motoring public seems divided in the battle over California's energy -- and fiscal future.
"I'm not really crazy about drilling offshore," motoristJerry Timmons told. "I think there are better alternatives than that."

But Raef Rodriguez disagreed. "As long as they put it in a good enough area where it doesn't affect anyone or the nature, then I think it's alright," he said while pumping gas into his car.
And Sacramento driver Kim Harrison put it this way, "I mean it sounds good with the revenue that it would create but I just would be concerned about maybe the environment and the effects it would have on that. So I would want to hear more."

Californians will be hearing more about Chuck DeVore's bill when it's expected to be formally introduced at the Capitol, with hearings likely in February.
But even the bill's author concedes his proposal faces an uphill fight in the Democratic controlled legislature.