To terminate the effect of laws prohibiting the spending of appropriated funds to conduct oil and natural gas leasing and preleasing activities for any area of the Outer Continental Shelf, and for other purposes.

Mr. Speaker, down in the depths of the warm waters of the Gulf of Mexico lies some old Spanish galleon with unrecovered gold, but there is another type of gold in the bottom of the Gulf of Mexico, black gold. We call it crude oil. There is also white gold there as well. We call it natural gas.

These natural gold reserves are energy for today's Americans and we need to drill for these gold reserves. According to the Department of Energy, families across the United States will experience winter heating bills that will be up to 50 percent higher for those who heat with natural gas. This alarming data is yet another reason for us to open up the Outer Continental Shelf and begin drilling for more natural gas and oil off our own coastlines.

The so-called global warming will not keep Americans warm this winter. We have got to become more self-sufficient when it comes to energy, natural gas and crude oil. It borders on the absurd to continue to be held hostage by foreign countries and foreign oil and ignore the billions of barrels that have yet to be drilled off the United States coastline.

Mr. Speaker, I have introduced H.R. 3811 to help relieve our energy woes and help stop U.S. dependence on foreign oil. This legislation will allow for safe oil and natural gas exploration along the Outer Continental Shelf. This bill would do away with all the moratoriums and executive orders that limit leasing activities while maintaining environmental.

Right now 90 percent of our coastline is off limits to drilling because the Federal Government prohibits it. In this chart, Mr. Speaker, I show the three places off the coast of Texas, Louisiana and Mississippi where we drill. All the red here, these are sacred places where we cannot drill for oil. Maybe Texas, Louisiana and Mississippi ought to join OPEC.

In any event, Mr. Speaker, we have got to drill off these other areas because there is oil and there is natural gas in these areas off our Outer Continental Shelf.

It is a myth, Mr. Speaker, that we cannot drill offshore safely. The best experts in the world are from the United States and they know how to drill safely. It is a myth perpetrated on the American people by environmental extremists. No one wants polluted waters. I certainly do not, but we can have both safe drilling and environmentally correct drilling as well.

Let us look at some of the facts, Mr. Speaker. This chart shows pollution from oil, crude oil. Most of the pollution that is in our oceans comes from nature itself, from seepage on the bottom of the ocean. About 63 percent comes from nature; 32 percent comes from jet skis and oil runoff from American soil; 3 percent comes from those tankers that are bringing crude oil in from the Middle East; and way down here 2 percent of the pollution of crude oil comes from offshore drilling. It is a myth to think that we cannot drill offshore in a correct, an environmentally correct way.

The National Academy For Sciences has furnished this information. The American public needs to know the truth about offshore drilling. If coastlines like Florida are worried about the environmental threats, maybe they should stop people from using jet skis and boating because more than a quarter of the spills come from just that. But maybe we should do some research.

According to the Department of Interior, since 1985 more than 7 billion barrels of oil were produced in Federal offshore waters, with less than .001 percent spilled. That is a 99.99 percent record for clean operations. My Jeep leaks more oil than this.

Katrina and Rita hit the coastline very hard, Mr. Speaker. There were high winds, billions of dollars in damages, refineries were closed, but we did not hear anything about oil spills from offshore rigs that were damaged. Why? Because it cannot occur. Even those violent ladies of the gulf could not get a good oil spill to happen.

People in these coastal States want cheap gasoline. They want natural gas, but they say do not drill off our coastlines. Mr. Speaker, this is hypocritical and it violates common sense. Plus, leasing these reserves will bring money to the United States Treasury and to State governments.

If Americans expect to continue driving and heating their homes at low prices, we must begin safe drilling in other places besides the gulf. Economies on the coast rely heavily on tourism and they voice concerns about the so-called environmental impact. Mr. Speaker, if fuel costs continue to rise, the planes and automobiles will be used less and these tourists will never show up at these coastal places. It seems like the consequences of higher gas prices could have a worse impact than an innocent oil rig that is 100 miles off the coast.

Around the world nearly every other major country with oil and gas reserves is promoting investment and developing their offshore capacity. They

even drill in the North Sea, the roughest waters in the world, and they do so safely.

Mr. Speaker, we need to continue to explore the Outer Continental Shelf or we will suffer the consequences. Someone has said we will freeze in the dark and end up riding bicycles if we do not use common sense. Mr. Speaker, that is just the way it is.

National Ocean Industries Association

Basic Facts About Offshore Oil and Natural Gas

U.S. offshore energy production is an essential component

of the nation's energy and economic security. U.S. offshore

development accounts for more than 25 percent of the

country's natural gas and more than 30 percent of its oil.

Each year, offshore energy development contributes between $4

and 6 billion in revenues to the federal Treasury. Millions

are also paid to states and local communities. The federal

offshore produces approximately 600 million barrels of oil

and about 4.5 trillion cubic feet of natural gas annually.

The U.S. offshore industry leads the world in developing

and commercializing advanced technologies that protect

sensitive environments and improve the quality of life for

all Americans. The U.S. offshore energy industry operates in

accordance with the world's most stringent standards for

human safety and environmental protection.

Since 1985, more than 7 billion barrels of oil were

produced in federal offshore waters with less than 0.001

percent spilled--a 99.999 percent record for clean

operations. Government statistics show that the injury and

illness rate for offshore workers is about 70 percent lower

than for all of private industry. Thirty percent of the 15

million fish caught by recreational fishermen annually off

the coasts of Texas and Louisiana are caught near platforms.

Conservative estimates show annual catches of approximately

450,000 pounds of reef fish annually, valued at approximately

$2 million.

national benefits

Producing America's Energy

The submerged lands of the outer continental shelf (OCS) of

the United States have proved to be one of the most bountiful

sources of offshore oil and natural gas in the world. On a

per-day basis, the OCS currently produces about 13.9 billion

cubic feet of natural gas and about 1.3 million barrels of

oil. The federally managed OCS provides the bulk--about 89

percent--of all U.S. offshore production. Five coastal

states--Alaska, Alabama, California, Louisiana and Texas--

make up the remaining 11 percent.

Offshore Energy Revenues Enrich the Nation

Between 1953 and 2002, the offshore energy industry has

contributed more than $145 billion to federal revenues. Most

of these revenues were derived from royalty payments that are

assessed on oil and natural gas produced from federal lands--

typically one-eighth or one-sixth of oil and natural gas'

market value. Royalties, rents and bonus payments are

collected by the Minerals Management Service (MMS)--which

often results in that agency serving as the second largest

collector of federal revenues after the Internal Revenue

Service.

Although most the revenues derived from offshore energy

activity are deposited directly into the federal Treasury,

these revenues are also the source of funds for the Land and

Water Conservation Fund and the National Historic

Preservation Fund. State and federal agencies use the Land

and Water Conservation Fund Act to buy parks and recreation

areas. Annually nearly $1 billion dollars in OCS revenues

flow to this program.

Likewise, the National Trust for Historic Preservation has

received more than $2.5 billion in offshore energy proceeds

to help preserve historic legacies since 1982. Like the Land

and Water Conservation Fund, money from the National Historic

Preservation Fund is distributed to states whether or not

they have any offshore leasing or production seaward of their

coasts.

Coastal states in producing areas also have a direct claim

on OCS revenues under Section 8(g) of the Outer Continental

Shelf Lands Act. For leases on the submerged lands lying

outside the 3-mile state zone and as far as 10 miles

offshore, 27 percent of the royalty, rent and bonus revenues

are paid directly to the adjacent states.

States have used these funds for a variety of programs.

Alabama established the ``Forever Wild Program'' with

offshore leasing and production money to acquire, maintain,

and protect unique habitats. Mississippi has a similar ``Gulf

and Wildlife Protection Fund'' and Louisiana uses its money

for education.

Employment

The Gulf coast of Texas, Louisiana, Mississippi and Alabama

is the birthplace of offshore prospecting for oil and natural

gas, and the economic benefits of that development continues

to accrue to that region to the present day. There are more

than 85,000 jobs that are directly related to the industry,

and an equal number of workers employed in supporting jobs

indirectly related to OCS activity.

The average salary and benefits for workers of producing

companies employed as a direct result of activity in the Gulf

of Mexico was estimated to be $52,580 in 1992. (The last year

for which statistics are available.) Since then, a shortage

of skilled labor due to the recent boom in industry activity

has pushed earnings even higher. In addition to payroll

expenditures, producers pay several billion dollars each year

to vendors and contractors who support OCS activities.

Safety and Environmental Performance

The National Academy of Science's National Research Council

recently released the results of a comprehensive study

entitled, Oil in the Sea III: Inputs, Fates, and Effects. The

report finds that although the amount of oil produced and

transported on the sea continues to rise, improved production

technology and safety training of personnel have

significantly reduced both blowouts and daily operational

spills. In fact, the report states, today, accidental spills

from platforms represent only 2 percent of petroleum inputs

in U.S. waters and about 4 percent worldwide. Furthermore,

the MMS has found that most spills are quite small--with the

median being three barrels or less. Between 1971 and 2000, 41

percent of all spills were less than three barrels in size,

81 percent were less than 10 barrels, and 96 percent were

less than 100 barrels.

The industry remains under intense scrutiny by its two

primary regulators--the MMS and the U.S. Coast Guard--as well

as a host of other governmental agencies with oversight

responsibilities such as the Environmental Protection Agency

and the National Oceanic and Atmospheric Administration.

However, it is the MMS that regulates all exploration,

development, and production activities on about 8,000 active

leases to ensure that these activities are conducted safely

and in an environmentally sound manner. The MMS reviews and

approves industry exploration and development plans before

allowing any operations to commence, monitors all lease

operations to ensure that industry is in compliance with

relevant requirements, and conducts scheduled and unscheduled

inspections. In 1997, MMS conducted over 12,000 inspections

of OCS facilities.

Innovation Boosts U.S. Energy

The Deepwater

Between 1996 and 1999, technological advances coupled with

economic incentives passed by Congress under the 1995

Deepwater Royalty Relief Act, encouraged energy companies to

acquire more than 2,600 leases in waters 800 meters or

greater pushing the total number of leases in the Gulf of

Mexico to more than 7,000.

The number of deepwater exploratory wells drilled more than

doubled from 1996 to 1998, despite the limited number of rigs

that can work at such water depths and the decline in crude

oil prices during this time period. During that same period,

production from deepwater wells jumped 50 million barrels,

bringing total Gulf of Mexico deepwater oil production to

more than 570 million barrels in 2001--nearly a 535 percent

increase from 1995. By 2002, deepwater activity contributed

959,000 barrels of oil and 3.6 billion cubic feet of natural

gas per day to U.S. energy supplies--approximately 61 percent

of the Gulf's total production.

Innovative technological leaps have enabled this thrust

into ever-deeper waters. Floating drilling rigs and

production platforms are now able to maintain position over

top of a well thousands of feet below without the need to

moor a fixed structure to the ground. Dynamic positioning

systems using computer-controlled directional propellers

compensate for wind, wave or current to keep the vessel

stationary relative to the seabed, while innovative hull

designs maintain stability even in ``hundred-year'' storms.

As a result, drilling is now taking place in waters more than

10,000 feet deep, an accomplishment that would have been

unimaginable just 20 years ago. Since 2001, industry has

announced 11 major discoveries in waters exceeding 7,000

feet.

The Deep Shelf

Trapped more than 15,000 feet within the earth's crust, so-

called ``deep natural gas'' represents a tremendous untapped

domestic energy resource. Government studies estimate that

there could be more than 20 trillion cubic feet of untapped

deep natural gas deposits in the Gulf of Mexico--about as

much as is currently being produced from all areas in North

America on an annual basis!

Annual gas production from Federal waters of the Gulf of

Mexico has exceeded additions to proved gas reserves every

year since 1984, causing a decreasing trend in remaining

proved gas reserves. New discoveries of deep gas on the OCS

offer the best short-term opportunity for achieving the

large reserve additions and necessary high flow rates to

offset declining gas production, which has been falling

since 1997. Recent deep gas discoveries on the OCS have

shown these new completions can produce as much 20 to 80

million cubic feet per day.

Unfortunately, despite significant advances in deep gas

technology, these prospects remain very challenging to find

and develop successfully. Since 2001, Gulf natural gas

production has decreased from 5,128 BCF to 4,175 BCF in 2003.

Deep gas discoveries may help reverse this trend however:

deep gas production increased from a relatively low 284

billion cubic feet in 2000 to 421 billion cubic feet in 2002.

New Life for the ``Dead Sea''

As recently as the late 1980s, many experts agreed that oil

reservoirs in the Gulf were drying up. With oil and natural

gas output slackening, some dubbed the Gulf of Mexico

the ``Dead Sea''. However, leading edge technologies breathed

new life into the Gulf--technologies that have enabled more

efficient exploration in deeper waters and production from

the deepest recesses of the earth's crust. Now the Gulf is

widely recognized to be among the most promising areas in the

world and oil production levels have increased sharply every

year since 1996.

Leading edge offshore technology helps the country to find

and produce the energy to heat our homes, fuel our cars, run

our computers and drive the economy in faster, safer, cleaner

and more efficient ways than ever thought possible. These

innovations began with the natural gas and oil industry but

they enrich the lives of all Americans. As the leading

technological laboratory in the oil industry, the Gulf's

transformation provides an interesting snapshot of the

advances that have reverberated around the world and helped

to keep energy abundant, affordable and clean.

Madam Speaker, when the ladies of the gulf, Katrina and Rita, came barreling through recently, we learned many lessons. Unfortunately, in the aftermath we learned that the gulf coast oil and natural gas production can be easily disrupted to the detriment of the Americans. Although there were around 2,900 platforms pelted in the path of the ladies of the gulf, very little environmental impact resulted. In the wake of these hurricanes, the need for American petroleum and natural gas and dependence on ourselves has become evident.

The United States must be more self-sufficient when it comes to energy.

The United States imports 60 percent of its crude oil from foreign countries. In doing so, we are subject to the illegal price fixing cartel known as OPEC. The Gulf of Mexico is responsible for one-third of the domestic oil production and 22 percent of the domestic natural gas production. We learned

from Katrina and Rita, oil and natural gas production can be disrupted to the detriment of consumers throughout the United States because production is too concentrated in the gulf coast region.

To correct these problems, I have introduced H.R. 3811. This legislation would allow for safe oil and natural gas exploration along the Outer Continental Shelf. This bill would do away with all appropriation moratoriums and executive orders that limit leasing activities, while maintaining environmental safeguards.

It is imperative that the United States begin drilling in other parts outside of the gulf. Madam Speaker, as my colleagues can see from this map, there is a wide range of areas where we can drill. Right now, the United States drills right here off my home State of Texas and Louisiana; yet, there is crude oil still in the Gulf of Mexico, on the east coast and, yes, Madam Speaker, even off the sacred coast of California. It is imperative that we think and consider drilling in these areas.

Since the 1980s, Congress has been placing appropriations moratoriums on drilling on all of these red areas that are outlined on this map. They are doing so by withholding leases. It started in California, and now about 90 percent of the Outer Continental Shelf is off limits to energy developments. All these people on these coastal States want cheap gasoline, they want natural gas, but they say do not drill in our neighborhood.

Madam Speaker, this is hypocritical. This does not make sense. It violates common sense. In this Outer Continental Shelf, there are about 300 cubic feet of natural gas and more than 50 billion barrels of oil yet to be discovered, enough to replace current imports from the Persian Gulf for 60 years and produce sufficient natural gas to heat 75 million homes for 60 years.

Madam Speaker, it would seem to me that opening up these areas would be the obvious choice. We are the only major industrial power in the world that has this silly rule about not drilling off our own shores. They drill in the North Sea, and around the world, and yet, they do so safely.

My bill would allow the Department of the Interior's Mineral and Mining Service to begin processing these leases. This would bring in additional lease revenue to Americans. Right now, Americans are receiving in this blue area $7.5 billion a year in lease revenue. Imagine what we could get from these red areas if we allowed drilling in these areas.

It is important that we use some common sense. Americans worry about skyrocketing energy prices and want solutions. The decision on where to drill is going to have to be made and made soon. This is a price issue, but it is also a national security issue.

Hurricane season is not over and it will be back next year. It is inevitable that more storms will come down hurricane alley right here in the gulf, and they are going to stop in Louisiana or Texas. With all the rigs in the same place, we are destined to repeat history. Although most of the rigs survived Hurricanes Rita and Katrina with minimal damage, there will be more storms, wind and disasters.

Those that say no to offshore drilling have no solutions to the energy problem. We can drill offshore safely, environmentally correct, when you get over the fear factor proposed by the anti-drilling people, and take control of our own energy needs. Otherwise, Madam Speaker, we will freeze in the dark. That is just the way it is.