Will off-shore drilling impact the current boom on shore?

General Mineral Rights Discussion
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Received this update. Does anyone have any insight into how this might impact what's happening on-shore?

Offshore Drilling Bill – Passage - Vote Passed (235-186, 13 Not Voting)

Before leaving for the July 4th recess, the House passed a bill that would direct the Interior secretary to implement a five-year oil and gas leasing program off the Atlantic and Pacific coasts, including areas off of California, South Carolina and Virginia. The vote largely broke along party lines, with 16 Democrats voting in favor of the bill and 6 Republicans voting no. Five of the six GOP no votes came from the New Jersey delegation. The bill would make at least half of the unleased costal areas with the most potential for energy production available for exploration and would create a nationwide revenue sharing system for all coastal states. Before passing the bill, the chamber narrowly defeated (209-210) a Democratic amendment by Alan Grayson of Florida that would prevent the bill from affecting states’ authority to restrict leasing and natural-resource development beneath states’ navigable waters. Reps. Peter A. DeFazio, D-Ore. And Lois Capps, D-Calif. also offered amendments to protect sensitive coastline in Alaska and California. Both were defeated. The House adopted (217-202) a Paul Broun, R-Ga., amendment that would place a 60-day limit on judicial review of claims arising from projects in the leasing program. It would place restrictions on appeals and institute a "loser pays" requirement on individuals or entities filing suit, except in specified circumstances.

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Dear Mr. Allen,

Good questions.

First to play the offshore, you need to be an approved Operator with the Minerals Management Service (MMS), a Department of Energy agency, the one that got in hot water a couple of years ago.

The offshore, especially Federal Waters, is pretty much a big boy game. First, data needs to be shot and worked, a lease sale needs to be had and then exploration can start. Everything doubles or triples offshore in the way of cost. You might see your first production in a virgin territory like that in 10 years. There is no pipeline infrastructure at all. You might want to establish a field, before you figure out how big a line to lay. There are lots of things to think of offshore that we take for granted here.

Offshore exploration departments have a different budget from the Onshore exploration department, so in some sense, if the the exploration company plays the offshore, some of the total exploration budget will go to the offshore. But that does not affect the big boys at all.

So, yes, maybe a wee bit. But you will not see it onshore at all. The new exploration areas are far from having their first sale.

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Thanks for the insights, Buddy.