Small Business Trends

Washington, D.C. (July 15, 2008) – The Small Business & Entrepreneurship Council (SBE Council) praised President George W. Bush’s move today to lift the Executive Branch ban on offshore drilling that has been in effect since 1990.

“For many years, SBE Council has been a strong advocate for lifting the government’s ban on offshore energy exploration and development. Long-term trends and data pointed toward a dramatic increase in worldwide energy demand, and that prices would rise just as dramatically if the U.S. did not pursue a self-reliant, energy-reducing path. Well, here we are and small business owners are getting hit hard. Another sad aspect to this story is that exploration and development can be done in an environmentally-friendly way,” said SBE Council President & CEO Karen Kerrigan.

“Our energy cost crises makes the expansion of our nation’s energy resources even more imperative. If only Congress and previous administrations had acted. But we must not look back. We must look forward and act. President Bush has exhibited real leadership in taking this step today. But unless Congress follows suit, it will be for naught. Congress imposed its own prohibition on offshore energy development 27 years ago. It’s time for our political leaders, no matter their political affiliations, to come together to support expanding all energy options to aid consumers, entrepreneurs and the economy in general.”

Raymond J. Keating, SBE Council’s chief economist, added: “It’s important to understand that markets work, including energy markets. As prices and profits rise, signals are being sent to the marketplace. On the demand side, the signal is conservation. On the supply side, the signal is to expand production and innovate. Unfortunately, the government often interferes with these market signals. The ban on energy exploration – both offshore and under various federal lands – distorts the market, fails to allow energy suppliers to respond appropriately to market needs, and in the end, drives up energy costs for all. If Congress joined with President Bush in removing the bans on offshore drilling, the market response would be positive, not only in the long run, but also more immediately due a dramatic and positive shift in U.S. energy policy.”

The SBE Council is a nonpartisan, nonprofit small business advocacy group that works to protect small business and promote entrepreneurship. For more information, please visit: www.sbecouncil.org.