Energy companies argue they could help meet that demand with more domestic production, if they could get access to many offshore areas where drilling is not allowed, a move strongly opposed by environmentalists.

The Interior Department, run by Bush administration appointees, thinks it may be time for a policy change.

In its draft 5-year drilling plan for the 2007-2012 period, the department proposed allowing exploration for oil and natural gas off the Virginia coast, where such activity is now banned.

The idea of leasing federal waters off Virginia was in response to discussion in the state's legislature about the potential of developing energy resources off the state's coast, said Johnnie Burton, director of the department's Minerals Management Service, which oversees offshore drilling.

"However, no offshore development will occur off of Virginia unless the state's congressional delegation works to lift the moratorium," she said.

Current presidential withdrawals of offshore areas to drilling or congressional drilling bans have placed more than 85 percent of the waters around the lower 48 states off limits to energy development, including all areas off Virginia.

The Bush administration "has indicated support" for the moratorium, but will give great weight to the comments from adjacent coastal states on allowing drilling, Burton said.

Energy exploration is allowed off Texas, Louisiana, Mississippi, Alabama and parts of Alaska.

The department also proposed permitting drilling in a small area off the western coast of Florida, where the government had suspended energy exploration at the request of state officials, including Gov. Jeb Bush, the president's brother.

Florida officials fear an oil spill could hurt the state's multibillion-dollar tourism industry.

The bottom part of the so-called Sale 181 area would be opened to drilling, while no drilling would be allowed within 100 miles of Florida's coast, which would include the disputed area's slender rectangular tracks known as the "stove pipe."

The department also proposed allowing energy exploration in a previously underdeveloped area in the North Aleutian Basin off the Alaskan coast.

Mike Linn, chairman of the Independent Petroleum Association of America, said the department's proposal was a step in the right direction but he added the government needed to open even more off-limits areas to drilling.

"As consumer demand for oil and natural gas rises, the country must meet the supply challenges by securing reliable energy from America's own reserves," he said.

The draft drilling plan will be open for public comment for 60 days, and then could be revised. The plan will go through several more steps before it is finalized in spring 2007.

Separately, the department raised its estimate of US undiscovered offshore energy resources by 15 percent to 85.9 billion barrels of crude oil and 419.9 trillion cubic feet of natural gas.

"The offshore energy industry has compiled an outstanding safety record that allows development of these resources without significant risk to the environment," Burton said.

She pointed out that during last year's hurricanes there was no significant pollution from producing facilities.