Republicans Eye Offshore Drilling in U.S. Budget Bill

Republicans next month may try to open new U.S. offshore areas to oil and gas drilling in a move that would bring in billions of dollars in new revenue and let politicians claim progress in boosting domestic energy supplies at a time of record prices.

Such a plan would face stiff opposition from environmental groups as well as influential California, Florida and New York lawmakers who fear offshore drilling’s impact on tourism.

The move could come when the U.S. Senate and House of Representatives return from summer recess Sept. 6 and try to craft a package of federal spending cuts and tax reductions that Congress outlined last spring.

Opening more of the Gulf of Mexico and all areas of the Outer Continental Shelf (OCS) to energy exploration and production could raise billions of dollars in revenue for the U.S. government from auctioning federal leases.

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