I thank my friend and colleague from Georgia. A little bit about my district. My district is the 7th Congressional District of Louisiana. It is southwest Louisiana. So I am on the border with Texas. I am on the gulf coast, and we have been…
I thank my friend and colleague from Georgia. A little bit about my district. My district is the 7th Congressional District of Louisiana. It is southwest Louisiana. So I am on the border with Texas. I am on the gulf coast, and we have been a long time leader in the oil and gas industry.
We have about 3,800 drilling platforms out in the Gulf of Mexico. Most of those are located off the coast of my district. I have one of the Strategic Petroleum Reserves in my district, and it accounts for one-fourth of the oil that we hold. I also have a confluence of pipelines called the Henry Hub which is the pricing point for natural gas for the entire country.
We have a number of refineries along the Calcashoe ship channel located throughout southwest Louisiana, so we have a significant amount of the refining capacity that supplies refined products to this country.
The oil and gas industry is about jobs. Every time I fly back and forth to my home in Lafayette, Louisiana, I run into four or five gentlemen typically who work in the oil and gas industry, and when I ask them where they are working, they are telling me that they are coming from or going to countries all over the globe, Angola in Africa, Equatorial Guinea, Thailand, Vietnam, and countries throughout the Middle East.
I ask them why is that? Why are you out there?
They tell me I used to work in the oil and gas industry off the gulf coast, and after the imposition of the windfall profits tax in the 1980s which devastated the oil and gas industry, they lost their jobs in the gulf coast area and they ended up going off and working all over the globe.
We have expertise all over the world in the oil and gas industry, and every one of these gentlemen when I talk to them wishes they could come back home and work in the United States, to be close to their families, to work in an area that they are comfortable with rather than being off in foreign countries and having to do all of that travel that oftentimes takes 2 or 3 days of their time, often at their own expense.
So getting a comprehensive energy policy is about good, high-paying American jobs. It is about keeping jobs in the United States. It is about growing new jobs. It is not just about the oil and gas industry.
What we have been advocating is a comprehensive, all-of-the-above energy approach, an energy approach that looks at oil and gas because we are dependent on oil and gas for most of our transportation needs, much of our electricity, and really for a good part of all of our energy needs. Oil and gas are a critical part, but at the same time we also have to look at good, tried and true methods of conservation. And we have to look at alternative fuels and renewable energy and nuclear power and clean coal technology. All of the ideas that are out there, we should be unleashing individual American genius because that is what has made this country great and has helped to solve problems of the past, and is what will help us pull out of this energy crisis that we are seeing. Families and seniors and small businesses and our schools, our local governments are struggling with the high cost of energy.
I talked to a senior not long ago who told me it was getting difficult for her to afford gas and make the usual runs to the grocery store. And she was paying high food prices on top of that, so she teamed up with folks in her neighborhood and they are still struggling with the cost of gas. This is just unacceptable. In a country that has the brilliance that the American people have and the entrepreneurship, we shouldn't be struggling with this. The sad thing is that the only thing blocking it is good policy, and this Congress has it within itself to move forward on a good, comprehensive energy policy. It distresses me it has been blocked. We have not had an opportunity to bring a comprehensive energy bill to the floor of the House.
This country has had one energy shock after another. There have been about six of them since the end of the Second World War. A number have caused significant price spikes, when you talk about 1973 with the Arab oil embargo, 1979 when the Iranian problem came up, the 1990 gulf crisis, the windfall profits tax thrown on top of the oil industry in the 1980s, and of course recently what we have seen with real high price spikes.
I am glad you brought that up. Clearly, having a whole lot of refineries concentrated on the gulf coast, in Texas or on the coast of Louisiana, we have a very soft underbelly. We have a true vulnerability with key energy infrastructure. Many refineries, while they were not damaged, they had to be shut down for a period of time. We don't have large inventories of gasoline in this country. We don't have it. So when you shut refineries down, particularly a large number of them, you end up with shortages of gasoline and this country has had to start importing gasoline to a much greater extent than we used to.
Diesel as well, and other refined products. So this a significant problem. If we had true destruction of those refineries, which could have easily happened, we are talking about a real vulnerability, real price shocks at the pump, and a long time before we can get this infrastructure back up and running.
The point is with a comprehensive energy policy, we are going to diversify our sources of energy. We need to expand refining capacity and build out in other areas of the country. We need to invest in the alternative fuels that will give us alternatives to gasoline, but it takes time for those investments. Clearly, it is important that we start the process.
In my district, a large oil company has just recently put a significant investment into an alternative fuel company that is going to be making cellulosic ethanol. It is the first cellulosic ethanol facility in the entire country. They are ramping up and there is a lot of excitement about it, and it offers great possibilities, but we have to develop this and we have to develop the infrastructure. That is going to take time. So what we have to do is strategically manage our dependence on fossil fuels right now as we transition to the next energy economy which will involve alternatives and renewables.
First of all, as we try to transition, we still need oil and gas, and we should be investing in this country and in the United States, looking at our own natural resources. A large part of the oil and gas that is
available is off our Outer Continental Shelf, in the gulf coast area, as we have seen off the coast of Louisiana and Texas, Alabama, Mississippi, but also east coast and west coast. We ought to be taking advantage and using those resources as we transition.
One of the key features that we fought for, I say ``we,'' the Louisiana delegation, for 50 years we fought to get revenue sharing whereby the tax revenue that comes to the Federal Government, some of it is shared with the States.
For instance, in Louisiana now with new production, we have the opportunity to share in 37.5 percent of revenue that will go to the State to help the State do environmental repair along the gulf coast. It will help us invest in infrastructure, and it also provides an opportunity to invest in alternatives fuels. That provision was enacted in the Energy Security Act of 2006, something we fought very hard for and it is a very good bill.
It is critically important that States along the coast have that revenue-sharing option available to them. That is the incentive for them to allow drilling off their coast.
And that helps them build their infrastructure. The Democrat bill earlier this week didn't allow that. And that's one of the reasons why I think this was a sham approach. It was saying, we'll give a little lip service to drilling in the Outer Continental Shelf, but we're going to restrict certain areas of the Outer Continental Shelf, and we're not going to allow revenue sharing, which is something the States all want. And that's the essence of federalism. That's a great way to do it.
And I would say for folks back home in Louisiana who may be listening to this, our 37.5 percent revenue sharing was also jeopardized by this Democratic bill. So after 50 years of fighting to get revenue sharing for Louisiana in the 8.3 million acres that were opened up in the eastern Gulf of Mexico, we could suddenly lose that if that bill were to go all the way through the Senate and the President signed it. Fortunately, the President says he's going to veto it, but our own Democratic Senator, Mary Landrieu, has said this bill is dead on arrival.
It is my understanding that that revenue sharing is at risk.
There is no assurance that that revenue would be retained. And that's a very important incentive to get the States to play ball with this. And let's take advantage and use those natural resources that we're so fortunate to have. We're at a time right now where oil reserves are being depleted around the world, and oil infrastructure is really in a state of decay in many of these countries. It's the free market companies, the big companies that are around the world that have the kinds of technology that we need to get in there and do this. But with everything else in decline, we need to be taking advantage of using our own resources while we transition, and increase investment in alternative forms of energy, alternative fuels, whether it's biofuels, because there's a whole host of new generation biofuels that we're on the cusp of working with. We need to invest in that, but it's not going to happen overnight. So that's why it's critically important right now to make strategically good decisions about how we use our resources.
We owe that to the American people. This Congress will be irresponsible. Our Democratic friends will be irresponsible if they don't allow a comprehensive energy reform package to come to the floor of the House.
I fully agree with you. And we in Louisiana know that good energy policy can march hand in hand with environmental policy that's sensible, and it's also good for the economy and it grows jobs. We have seen that. We've seen what happens when bad policy affects an industry like the oil and gas industry and you lose jobs. We've seen that kind of cycle. And there's no reason for that. Those are policy decisions made by those who are truly uninformed.
What the American public has already very clearly stated is that they want a comprehensive energy policy. And we have it within ourselves to do that. This is not rocket science.
I thank the gentleman for yielding. I just want to mention to my friend from Texas that we're with you on this. My State got hit by four hurricanes, two really devastating hurricanes in 2005, Rita and Katrina, and now Gustav and Ike. And folks are suffering back home on top of the suffering that they've had as a result of high prices at the pump. And I have to say, it frustrates the heck out of me to come up here to try to get something done to help folks back home and around the country suffering with these high gas prices, and we can't get it done. We're playing political games up here because of the leadership on the other side. It's very frustrating because folks in Texas, my friend's State, my home State of Louisiana, are really suffering doubly because we have born the burden of providing energy for this country in Louisiana and in Texas. And yet, folks back home are saying, what's wrong with the rest of the country? What's wrong with the Democratic leadership? Why won't they give us an energy policy.
Give us a vote. We've got the bills. We've got the answers. Give us a vote. That's all we're asking. And I yield back to my friend from Texas.