Hurry up and let's get little done! When it came to formulating a sane national energy policy-one that relies on the accelerated development of domestic oil and gas resources and not just alternative fuels and conservation-this seems to have been the mindset of a Republican-controlled Congress, particularly after it achieved a strengthened majority in 2004.

Worse still, this mentality is likely to be perpetuated, even accelerated, in the new, less-industry-friendly Democratic Congress.

True enough, in the waning hours before the Republican-held 109th Congress adjourned this December, it sent President Bush legislation that would open more than 8 million deepwater Gulf of Mexico acres offshore Florida to oil and gas drilling. But at the same time, the legislation extends a ban on oil and gas drilling elsewhere offshore Florida until 2022.

Just days prior to this half-hearted move by Congress, Barry Russell, president of the IPAA (Independent Petroleum Association of America), noted quite accurately that this legislation isn't the solution, but merely a step-we would say a baby step-toward achieving greater U.S. energy security.

"The federal government still maintains its unnecessary [drilling] moratoria on the East and West coasts off the U.S. as well as [other parts of] the eastern Gulf of Mexico," he observes. He stresses, "American policy-makers must stop this 'yes-you-can; no-you-can't' paradox."

Russell notes that 90% of the deep water offshore the U.S. still remains off-limits, including 300 trillion cubic feet (Tcf) of gas and 50 billion barrels of oil, "resources that could replace current levels of oil imports from the Persian Gulf for the next 59 years."

Comparatively, the 11th-hour legislation by Congress in December opens an offshore area estimated to contain only 1.26 billion barrels of oil and 5.8 Tcf of gas reserves.

Much the same governmental myopia toward energy extends to the domestic onshore. In November, the Department of the Interior released a report showing that only 3% of onshore federal oil and 13% of gas are accessible to America's producers under standard lease terms.

The 99 million onshore acres inventoried by the Bureau of Land Management is estimated to contain 187 Tcf of gas and 21 billion barrels of oil. However, due to bans, federal restrictions and bureaucratic delays, the majority of this public resource is closed to industry development.

"This report clearly demonstrates the distinction between what is available and what is accessible," says Mike Linn, IPAA chairman and president of Houston-based Linn Energy. "There is enough onshore oil and gas available in the U.S. to significantly alleviate the burden on American consumers while strengthening our energy security."

The Interior study reports that 46% of U.S. onshore federal oil and 60% of onshore federal gas have the potential to be developed but are subject to major restrictions and impediments.

Adding insult to injury, producers are paying the costs of environmental-impact statements-costs that are supposed to be incurred by the government, says Linn.

What's ahead in 2007 for the industry as a new Congress wrestles with energy policy? For one thing, don't look for the opening of new oil frontiers like Alaska's ANWR. The best chance for that has already passed.

Instead, look for further governmental roadblocks to oil and gas development, including the removal of drilling incentives. And, although it hasn't been whispered yet, "windfall-profits tax" is likely to reverberate on the floors of both the House and Senate.

Likely, we're moving from a period of relatively benign, do-nothing energy "policies" to one of aggressive, anti-industry proposals designed to fatten federal coffers at the expense of encouraging the development of increased domestic energy supply-supply clearly abundant based on the government's own studies.

But investors, take heart. In an environment where bringing on incremental energy supply is burdened by red tape at the same time oil and gas demand is rising, the economic inevitability is continued high commodity prices-and that ultimately translates into higher energy-stock valuations.

So cheer on the latest batch of blundering bureaucrats. In the end, it seems their myopia does have an upside.