Offshore drilling for natural gas

Compelling argument for expanding NG drilling offshore:
http://www.eande.tv/transcripts/?date=031306

I don't know much about the issue, being in a "land-locked state", but I guess its "environmental protectionism", worries that offshore drilling will lead to oil spills. I don't understand why we have drilling in the Gulf of Mexico around Texas and Louisiana but not other places.

Representative John Peterson (R-Pa.), says the U.S. is at a competitive disadvantage for having the highest NG prices in the world and that industry that uses NG will move off continent to compete and we'll lose out on millions of jobs.

Certainly I accept this argument as true for industries like nitrogen fertilizers which need NG to produce it.

I'm not sure what position to take. I think higher prices are good because they encourage conservation. I even believe if there's a secret conspiracy to raise NG prices to encourage efficiency, sounds great to me. I mean seriously, when I bought a new furance a year ago, I got a 94% efficient model, and a small rebate check as well, but I know perfectly smart and able people who'll make the "standard" choice of minimum 80% efficiency models - and this is for a 20+ year commitment! And on older homes, insulation, newer windows, all that just doesn't have a short term advantage under lower prices. SO despite the fact I think using NG for electricity production is VERY foolish usage, except perhaps for special "peak demand" periods as a last resort, but otherwise, I think NG deserves to be the highest priced fuel - since it is the cleanest source.

Anyway, I accept Rep Peterson's position - drilling will occur sooner or later. I still would keep high prices. I just don't know how to respond to the argument that higher prices encourage industry to move elsewhere.