Due to instability in oil-producing regions and higher energy demands in China and India pushing crude oil costs higher, the Senate moved closer to passing a Bill that would make 8.3 million acres in the Gulf of Mexico available for oil and natural gas drilling.
The Bill will allow drlling in coastal waters, a move that has invited major opposition from enviromental groups.
Advocates of the bill, say that it is an oppotunity for America to increase its domestic supplies of energy and that the debated area contains enough natural gas to heat and cool 6 millions homes for 15 years.
The area of the Gulf ofMexica has been under a drilling ban for a quarter of a century. The ban covers 85 percent of America's coastal areas.
Some lawmakers have taken issue with the fact that the bill specifically prohibits drilling between 125 miles and 230 miles of Florida's shore until 2022 while awarding royalties to four Gulf states that allow drilling. There is also a clause in the bill for revenue-sharing which would result in 37.5 percent of revenues being given to the Gulf states.
While manufacturers have expressed strong support for the bill, critics claim that the legislation's impact on oil prices will be negligible considering the high levels of demand.
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