Virginia backs oil, natural gas exploration off coast

Gov. Bob McDonnell says the money could start flowing next year.

"The money doesn't come only when the oil and gas begin to flow, but the money also comes when the leases are sold," McDonnell says.

"I want to see oil and natural gas start in 2011, and hopefully, wind not long after that."

The drilling could bring in millions in royalties. McDonnell says 80 percent of any royalties the state gets will go to transportation, but there are obstacles.

The federal government still has to approve the sale of oil and gas leases, and because the resources are technically American leases, other states may want a piece of the action.

There are an estimated 130 million barrels of oil and even more natural gas at potential drilling sites 50 miles off the coast.

WTOP's Hank Silverberg contributed to this article.

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