Energy bill deadlocked over offshore oil drilling

Meanwhile, the Senate stalemate over energy showed no sign of being resolved.

For nearly two weeks, the Senate has been embroiled in a partisan dispute over GOP demands that they be given a vote on a string of energy proposals, including expansion of offshore oil development.

Republican leader Mitch McConnell of Kentucky called energy the most important issue facing the country and argued that Democrats did not want to give it a full airing, including considering provisions for more domestic energy production.

Senate Majority Leader Harry Reid, D-Nev., offered to take up four Republican proposals as part of the oil market speculation measure, including a GOP drilling provision. Republicans first rejected the overture, but on Wednesday said they wanted to accept the offer.

But by then, Reid said he did not want to discuss the amendments any longer until Republicans agreed on a compromise on extending a variety of tax credits for wind, solar and other alternative energy programs. An attempt to advance the tax extensions bill failed Wednesday, 51-43, as Democrats fell nine votes short of getting the 60 needed to overcome a GOP filibuster.

Reid accused Republicans of refusing to compromise on energy, calling them "beholden to Big Oil."

New drilling plan ahead
Meanwhile, the Interior Department said Wednesday it was developing a revised five-year offshore drilling plan that would encompass all outer continental shelf waters, including those under the congressional drilling ban. Interior Secretary Dirk Kempthorne said that would give the next president a "jump start" on developing some the off-limits waters in conjunction with states should Congress lift its drilling restrictions.

Sen. John McCain, the presumed Republican presidential nominee, has called for lifting the Outer Continental Shelf drilling bans and for working with states on more offshore oil and natural gas production.

His Democratic presidential rival, Sen. Barack Obama, has opposed lifting the current drilling bans.

Both candidates were campaigning outside Washington on Wednesday and did not vote on the tax extensions bill.

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