MMS takes step for offshore Virginia oil

The US Minerals Management Service said it will soon begin to accept input from the public and will begin an environmental analysis to open up waters off the coast of Virginia to oil and natural gas development, following the end of the moratorium on offshore drilling.

A conference call with MMS Director Randall Luthi is scheduled for Wednesday.

Leasing tracks off the coast of Virginia was part of the agency's five-year plan, which started last year, even though Congress had banned drilling in that state.

Energy companies have expressed interest in exploring for natural gas off the state's coast.

This disclosure from the MMS comes as oil and natural gas futures trade at levels well below their highs for the year, said a Dow Jones Newswire report.

It is unclear if the new presidential administration under President-elect Barack Obama, will continue to support drilling as President George W. Bush has.

Obama came out in support of increased drilling - as a way to wean the US off foreign oil supplies - during the election campaign, but is seen to be more sensitive to environmental issues than Bush.

Obama's advisors have already indicated the president-elect will move to undo the newly approved leases for drilling on environmentally sensitive land in southern Utah, the Wall Street Journal reported.

The US Department of Interior approved the Utah desert leases.