Hastings: Oil plans a blow to economy

WASHINGTON, Feb. 15 (UPI) -- The energy strategy of the Obama administration means less revenue will be generated from oil and natural gas production offshore, a House leader said.

U.S. Rep. Doc Hastings, R-Wash., chairman of the House Committee on Natural Resources, said U.S. President Barack Obama plans to bar substantial energy production on the Outer Continental Shelf.

"In the first year of President Obama's five-year plan, rents and bonuses fall by 58 percent to only $852 million," said Hastings in a statement on potential OCS revenue. "By the last year of President Obama's five-year plan, the government is only collecting $569 million, a 72 percent drop from 2012 anticipated returns."

Supporters of domestic oil and gas development say the administration is blocking key areas of potential reserves off the Atlantic Coast.

Hastings said Obama's energy budget is costing U.S. taxpayers "thousands of dollars" during tough economic times.

The U.S. Interior Department said Obama's budget will create jobs and lead to greater energy independence.

"The administration's blueprint for energy security focuses on safely and responsibly developing our domestic energy resources, including both conventional and renewable resources," the Interior Department said in a statement.