The Minerals Management Service, which is charged with regulating offshore oil drilling, was a deeply troubled agency when Barack Obama inherited it from George W. Bush. Top MMS officials had been caught drinking, doing drugs and even having sex with oil-industry contacts. More prosaically, they accepted gifts from industry representatives and did favors for them.
The cleanup had already begun in the last months of the Bush administration, but President Obama and Interior Secretary Ken Salazar still had their work cut out for them. Not only did they have to enforce ethics rules, they had to ensure responsible management of the offshore oil platforms that are a key part of the MMS portfolio, a huge contributor to the national economy, and a continuing environmental risk.
The problem was, Obama and Salazar were more interested in pursuing their vision of a clean energy future. Under Obama, the Minerals Management Service, driven by a strongly ideological commitment to green energy sources such as wind and solar power, chose to stress “renewables” while de-emphasizing the tough and dirty work of managing the nation’s existing offshore oil wells.
“What they did essentially was divert the attention of the agency away from regulating offshore drilling and focus it on the expansion of offshore renewables,” says one well-informed Republican House aide.
It started early in the new administration. Salazar’s first departmentwide order, issued March 11, 2009, was to declare “facilitating the production, development, and delivery of renewable energy top priorities for the Department.”
Salazar chose Elizabeth Birnbaum to head the MMS in large part because of her record of environmental and green-energy advocacy. “We have changed the direction of MMS,” Salazar told the Senate last month, “by balancing its ocean energy portfolio to include offshore wind and renewable energy production.” Given the considerable size of the existing offshore oil industry, “balancing” the MMS portfolio meant putting a heavy emphasis on new offshore wind projects. “They were more into renewables offshore than they were into oil and gas,” says a GOP Senate aide who works in the area.
Birnbaum, who is so far the only Obama administration official to lose a job over the Gulf oil spill, spent an enormous amount of time working on the controversial Cape Wind project off the coast of Massachusetts. After years of regulatory wrangling, it was approved April 29 — nine days after the oil-rig explosion that set off the Gulf spill.