Mr. Chairman, I yield myself as much time as I may consume. Unfortunately, according to the Congressional Budget Office, these drilling measures the Republicans are bringing out on the House floor today, together, would only raise $4.3…
Mr. Chairman, I yield myself as much time as I may consume.
Unfortunately, according to the Congressional Budget Office, these drilling measures the Republicans are bringing out on the House floor today, together, would only raise $4.3 billion over 10 years, less than one-tenth of the revenue shortfall needed to fund our highways.
In reality, this bill amounts to little more than a giveaway of our public lands to Big Oil under the guise of funding our Nation's transportation projects, and most estimates are that no new revenue will be produced that is usable for this transportation bill.
Across the United States, oil production is at its highest level in nearly a decade. Natural gas production has reached levels we have never seen before in the United States. Oil production on public lands offshore is higher than it was during each of the last 3 years of the Bush administration.
According to industry analysts, by this summer, there will be nearly 30 percent more floating rigs operating in the Gulf of Mexico than there were prior to the BP spill. Yet the Republican bill would threaten the tourism and fishing economies of coastal States by allowing drilling off of our beaches in Florida, in California, up and down our east and west coasts, and, as well, in an area extensively used by the military where even Secretary Rumsfeld said ``drilling structures and associated development would be incompatible with military activities'' in this area.
This Congress has not enacted a single safety improvement since the BP spill. The bill would allow for drilling in the Arctic National Wildlife Refuge in Alaska, ripping out the heart of the crown jewel of our National Wildlife Refuge System. The Arctic Refuge is America's Serengeti. It is one of the natural wonders of the world, like the Grand Canyon, Niagara Falls, or the Great Barrier Reef, and it should be protected.
If we allow drilling in the Arctic Refuge, it will set a precedent that will allow the oil and gas industry to place a bull's-eye on each of the 540 wildlife refuges across this country. And this legislation would rush to give away 125,000 acres of public land in Colorado, Utah, and Wyoming to Big Oil for oil shale development. However, there is no commercially viable oil shale technology, and oil shale development could have significant impacts on water quality and quantity in the West if there were a commercially viable technology available, which Shell Oil and the Department of the Interior says does not yet exist.
In fact, the Government Accountability Office has said that the impacts of oil shale development on water could be significant but are unknown. What's more, this provision has been included by the majority, despite the fact that the Congressional Budget Office says that it would not raise any revenue over the next 10 years to fund our highways. So understand that.
This is a provision which CBO says raises no revenue in the next 10 years, but it's just stuck in here. The oil and gas industry would like to see it, so they just tossed it in. Nothing to do with funding transportation.
And the majority's drilling bills wouldn't even ensure that American natural gas stays here in America to help our consumers. Natural gas prices are six times higher in Asia than they are right here. They are more than three times higher in Europe than they are right here.
Low natural gas prices have been driving the economic recovery of the United States. We have far more natural gas in our country--and it's very low-priced--then we have oil. What the Republican bill will allow to happen is for this natural gas to be exported around the world, and exporting our natural gas would eliminate our competitive edge by driving prices up by as much as 54 percent, according to the Department of Energy.
Not ensuring that the natural gas stays here in the United States ensures that the majority, the Republicans, are imposing a de facto natural gas tax on American agriculture, manufacturing, chemicals, steel, plastics by allowing our gas to be exported.
Here's what T. Boone Pickens says about the idea of exporting American natural gas. Here's what he says:
If we do it, we're truly going to go down as America's
dumbest generation. It's bad public policy to export natural
gas.
Our natural gas is six times cheaper than Asian; it is three times cheaper than European. What are we doing exporting it? We should keep it here for our own farmers, for our own industries, for our own consumers. That's how we begin to put ourselves on a path of energy independence.
I agree with T. Boone Pickens. We should keep our natural gas here. We should not be following the Republican energy plan of drill here, sell there, and pay more. If we sell this natural gas around the world, the Department of Energy says the price is going up 57 percent here because we'll have less of it. That's how supply and demand works.
The same dynamic exists in the Keystone portion of the bill, where Republicans have failed to include any assurances that even a drop of the oil or the fuels will stay in this country.
When I asked the president of TransCanada, the pipeline company from Canada, whether he would be willing to commit to keeping the oil that passes through this pipeline in the United States, he said no. And why? Because the oil companies and the refineries want to export the fuels to the highest bidders around the world, leaving the American people with all of the environmental risk and little or none of the energy or economic benefit.
So drill here, sell there, pay more, that's not the Republican mantra. Drill here, drill now, pay less. Now they've morphed into what the oil and gas industry want, and all of the economic indicators point to the conclusion that our consumers will be harmed by that.
On the question of the totality of the economic benefits for our country, they are simultaneously proposing to kill the tax breaks for the wind industry, which is now creating 85,000 jobs in our country, in the face of the wind industry, saying that they will have to lay off 40,000 people over the next year unless the production tax break for the wind industry stays on the books.
So all of this is basically upside down as an energy policy. My strongest admonition to the Members who are listening to this debate is to vote ``no'' on this Republican proposal.
I reserve the balance of my time.
Mr. Chairman, I yield myself 2 minutes.
When the Democrats controlled the Congress in 2009, we passed a bill out here on the House floor that created an advanced energy technology bank that included $75 billion that the nuclear industry could have qualified for, $60 billion for the coal industry for clean coal technology. Although we also built in incentives for wind and for solar and for energy efficiency, we did it all. We gave everyone a running head start. We didn't say ``nothing'' to nuclear. No.
What have the Republicans done over the last year? They passed out here on the floor a bill that zeroed out the money for loan guarantees for wind and solar, but they left in the loan guarantees for the nuclear industry. That's not an all-of-the-above strategy, and you all voted for it unanimously.
No. Here's where we are. This oil-above-all strategy that you have, not all-of-the-above, this is basically at the heart of what this whole debate is all about.
Last year, the oil industry in the United States made $137 billion. This year, they're going to blast right past that $137 billion. Every person watching this debate is looking at the pump right now at $3.50, $4, $4.50 that they're paying, and it's going straight up.
They're going to be reporting profits of upwards of $200 billion. The Republicans continue to keep in the $4 billion-a-year for tax breaks for the oil industry. Over 10 years, that's $40 billion that would pay for the transportation bill.
Subsidizing the oil industry in 2012 to drill for oil is like subsidizing fish to swim or birds to fly; you don't have to do it. The consumer is already doing it at the pump. They're being tipped upside down.
So, there's an easy funding mechanism here. It's just taking away the oil company tax breaks.
I yield myself an additional 30 seconds.
That is the only way that we can substitute the money that stays within that sector.
These guys are going to cut back on the pension plans of Federal retirees in order to pay for a transportation bill when we should be keeping the funding stream within this energy sector because that's why we have cars on the road, in order to use this petroleum.
The oil industry right now is having it both ways. They're getting tax breaks from the taxpayers at the same time that they're taking the other pocket of every American as consumers, and they're taking money out of that pocket as well. That's really at the heart of what this debate is all about.
I reserve the balance of my time.
Mr. Chairman, may I inquire as to how much time is remaining on either side.
I yield 3 minutes to the gentleman from California (Mr. Garamendi).
I yield myself 1 minute.
Here is the reality. The Republicans need money to build roads, so they want to drill in the Arctic National Wildlife Refuge, which Senator Inhofe from Oklahoma has already made clear doesn't have the votes to pass in the Senate. The same thing is true for California and Florida and off the coast of Massachusetts and New Jersey. They want to drill there as well, and it's very clear that the votes aren't there in the Senate to accomplish that goal either. As the gentleman from California just said, the likelihood of finding any revenues from oil shale is at least two decades away, so there are no revenues there.
There is another bill, by the way, that's going to come out here on the floor. And in order to find the revenues, do you know where they're going to drill? They're going to drill into the pensions of FBI agents; they're going to drill into the pensions of the researchers for cancer out of the National Institutes of Health; and they're going to drill into the pensions of the Border Patrol agents, who are protecting us right now down on the Mexico border. That's where they're going to find almost all of the money for this bill--in the pensions of those people.
Is that really the way we want to build the roads of our country?
I reserve the balance of my time.
Mr. Chairman, I yield myself 1 minute.
Mr. Chairman, just 2 weeks ago, President Obama stood right here in this Chamber; and he said that he was going to propose opening up 75 percent of the oil and gas resources off the coast of the United States. That's a great plan. He doesn't want to drill off the California beaches. He doesn't want to drill off Florida beaches or off the New Jersey or Massachusetts beaches. But the rest of it, he's pretty much saying he's open to. But they're not happy with it over here. The President has a real plan and a plan that can be implemented.
What they are doing is they bring out proposals here that try to build real highways with fake oil revenues that are never going to materialize. So rather than working here in the real world, where the real transportation needs of our country are dealt with with real revenues that are coming in, they talk about oil shale which Shell says is at least another 10 years away. Shell Oil, that is, not some shell collector along the beaches.
I yield myself 30 additional seconds.
We are talking Shell Oil who says it's 10 years away. Jim Inhofe in the Senate says the votes aren't there to drill in the Arctic National Wildlife Refuge. So that's zero dollars as well. And the likelihood of them drilling off the coast of California or Florida or Massachusetts for oil is zero. So rather than going through this facade of trying to pretend that real highways can be built with fake oil revenues, we should be taking up the offer of President Obama where he says he'll open up 75 percent of all the drilling possibilities off the coastlines of our country. That is what this debate should be all about.
I reserve the balance of my time.
I yield myself 1 minute at this time.
The Republicans, over the past year, have betrayed their agenda. They have pretty much voted out on the House floor to gut the budget for wind, gut the budget for solar, gut the budget for plug-in hybrid vehicles and, at the same time, kept in the money for the nuclear industry, kept in the tax breaks for the oil industry. So that is pretty much what the debate is all about. It's about the past versus the future.
In our country right now, the American people want to know that we're embracing a future-oriented, technology-oriented, advanced-technology- oriented agenda for our country. That's what all the Republicans keep voting against out here, all of the new technologies that allow us to move on from this fossil-fuel era.
And it would be one thing if they just didn't vote for it, but then they have the temerity to stand up and to say they believe in all of the above. No, they do not. They believe in oil above all because otherwise they would not vote to kill wind and solar out here on the House floor over the last year.
I reserve the balance of my time.
I think it would be helpful for both sides to understand what the time situation is for the conclusion of the debate.
Does the gentleman intend to conclude debate with his next speaker?
In that case, I will yield myself the balance of my time so that I can utter the sentences that will need responding to by the chairman of the committee.
Mr. Chairman, let's go back a little bit to this issue of natural gas and what this Republican bill calls for--more drilling for natural gas in our country. Okay, we can look at that.
We support natural gas. We think that natural gas is the best story that's happened in our country in the last 10 years. We love natural gas. Democrats love it. It's half the pollutants of coal. It's domestically produced. We have to make sure that when we're extracting it we don't shoot chemicals down into
the surface so that we pollute the water that our children drink, but we think that we can work through those issues if people of good faith are willing to work together.
Otherwise, it's a fantastic story. Why is that? Because natural gas is not a world market. The world market is for oil. If it's $116 a barrel in China, it's $116 a barrel in the U.S. It's a global market. And that's what allows OPEC to hold us hostage, because they control all of that oil coming out of the Strait of Hormuz. They control all that oil so that they can basically hold the rest of the globe's economy hostage. But natural gas, not true.
Here we've seen a 30 percent increase in our natural gas reserves over the last 5 years. What does that mean? Well, in China it's $16. Japan, $16 per million cubic feet of natural gas. What is it in the United States? It's $2.42. So it's six, seven times cheaper in the United States. That means it is cheaper for every manufacturer, cheaper for every retailer, cheaper for every farmer, cheaper for every consumer.
What are the Democrats saying? We love natural gas; let's keep it here. Let's not be setting up terminals all across our country to export the natural gas across the planet with the Department of Energy saying, if we did that, the price of natural gas in the United States would rise 57 percent. How can that be good for consumers? Isn't that our advantage? Saudi Arabia is the Saudi Arabia of oil. We are the Saudi Arabia of natural gas. Why don't we use that to our advantage? Why don't we use that to inoculate ourselves against what Saudi Arabia of oil does to us by jacking the price of oil up and down? Why don't we become independent of them? Why don't we move to all natural gas vehicles? Why don't we use natural gas in the generation of electricity? Why don't we use natural gas in the production of all of our products? And why don't we use natural gas in the homes of our country, in the factories of our country, in the industries of our country at a price that's six times lower than China and Japan, three times lower than Europe?
That's what we are calling for here, an energy strategy that is all- American. And if we can get to that with this debate today, I think that the American people will be the winners.
I yield back the balance of my time.
I have an amendment at the desk.
Mr. Chairman, I yield myself 2 minutes.
Mr. Chairman, the purported benefits of the Keystone pipeline have achieved mythic status. We have been told that this pipeline will lower gas prices, even though TransCanada says gas prices will go up. We've been told tens of thousands will be hired to build it, even though only about 5,000 or 6,000 temporary construction jobs will be created.
And in a particularly egregious descent into Fairyland, we have been told that the oil coming through this pipeline would enable us to reduce our dependence on oil imported from unfriendly Middle Eastern or Latin American nations.
Last month, Canadian Prime Minister Stephen Harper even said, when you look at the Iranians threatening to block the Strait of Hormuz, I think this just illustrates how critical it is that supply for the United States be North American.
But under this bill, the Republican bill, there is no guarantee that even a drop of the tar sands oil and fuels will stay here in this country. They keep saying how great it would be if we had a million barrels of oil coming into the United States from Canada. There's no guarantee in this bill, and that's because many of the refineries where the Keystone crude will be sent plan to re-export the refined fuels.
This is the map of what the oil industry plans on doing with this oil. It comes right through the United States, and then it heads off to Asia, South America, over to Europe. And Valero, one of these refineries, says in its investor presentation that it plans to refine the Canadian crude at the same facility it is building in Port Arthur, Texas, an export zone, because doing so leverages its export logistics.
Our amendment will say this oil coming through this pipeline from Canada stays here in the United States and doesn't head off to China. That's what the amendment is all about.
I reserve the balance of my time.
I yield 1 minute to the gentleman from Vermont (Mr. Welch).
May I inquire as to how much time is remaining on either side?
Mr. Chairman, I yield 1 minute to the gentleman from Virginia (Mr. Connolly).
Again, could we get a review of the time remaining?
Could you inform me as to who has the right to close?
Mr. Chairman, I yield myself the remaining minute.
The gentleman from Nebraska says, What's the problem? All the oil's going to stay in the United States. It's not going to China.
That's what will happen if we don't build the pipeline. So they should vote for the Markey amendment because the Markey amendment could only be guilty of redundancy saying all the oil stays here in America.
So if that's your purpose, that's what the Markey amendment says. We'll hold you to your word when we have the vote.
But here's the real plan. TransCanada puts the dirtiest oil on the planet into the brand new pipeline Republicans are giving it; two, TransCanada sends that oil to the gulf coast where it can make billions more than where it currently sells it in the Midwest; three, refineries in the gulf coast re-export it to other countries at world oil prices and don't pay any taxes to the U.S. for doing so; four, Americans get higher gas prices and no increased energy security; five, TransCanada, Hugo Chavez, and the sheiks of Saudi Arabia laugh all the way to the bank.
Please vote ``yes'' for the Markey-Connolly-Cohen-Welch amendment.
I yield back the balance of my time.
Mr. Chairman, I demand a recorded vote.
Mr. Chairman, I rise to strike the last word.
I claim the time of the minority.
I thank the Chairman.
I will say that this amendment marginally improves the bill, but it does not change our fundamental opposition to it. But progress on any front is welcomed, even if we cannot make progress on every front.
I yield to the gentleman from Washington.
We do not oppose the amendment, and I yield back the balance of my time.
I rise to claim the time in the minority.
I thank the Chair very much.
Mr. Chairman, there's no question that the gentleman from Washington State is correct, and a master of parliamentary rules, having stood up there or sat up there hundreds of hours, so he is an absolute correct dissector of language used here of seeking recognition from the Chair.
So I rise to claim the time in opposition to the amendment, if those are the technical words of art that the gentleman would prefer for me to use.
I thank you.
This amendment would require a study to investigate potential economic impacts from a variety of risks that oil development in the Outer Continental Shelf poses to local tourism and fishing economies in Florida.
Well, we actually had a real-world study for 87 days during the BP spill. As we saw in 2010, with the BP oil spill, oil can wreak havoc on a coastal community, meaning a disaster for tourism and fishing, seafood industries. These disasters can and do happen, putting hundreds of thousands of jobs and billions of dollars at stake.
It is important for the public to know the risks associated with allowing oil companies to drill off of our coast. But we should be protecting our beaches in Florida and California and New Jersey and Massachusetts, not just requiring a study of how huge a disaster a spill would be for these States.
We should be protecting the lives and the livelihoods of the people of the gulf by taking the lessons of the BP spill and turning them into new laws. But nearly 2 years after the BP spill began, this Congress has not enacted a single new law to improve the safety of offshore drilling. That is indefensible when the BP Commission found that we have a fatally flawed rate of accidents and fatalities in our country. Compared to the rest of the world, ours is four times higher than that in Europe, that is, the fatalities on our oil rigs. So that's the issue.
We have yet to increase the fines because only we can do that here in Congress. Right now, a lot of these oil companies think it's just the equivalent of a parking ticket. You know, if you could pay a parking ticket for a whole day on the main street of any one of the cities in the United States, you'd pay that $1 parking ticket because it would be cheaper than paying 20 bucks to put it in a garage. And that's what we have right now. We have the equivalent of $1 parking tickets that are assessed against oil companies that despoil the ocean, that result in, because of their faulty safety rules, the highest fatality rate in the world in terms of people who work on oil rigs.
At this point, I have completed my statement, and I yield back the balance of my time.
I rise in opposition to this amendment.
If this amendment passes, Mardi Gras will come on the Wednesday before Fat Tuesday this year. That's because the Landry amendment delivers up to $6 billion in a financial King Cake to Louisiana and to the other Gulf States at the expense of the other 46 States in the Union.
In 2006, the Republican Congress passed legislation that will divert $150 billion over the next 60 years from offshore drilling on public lands to the four Gulf Coast States--Louisiana, Mississippi, Alabama, and Texas. That bill set up what amounts to a new entitlement program for these four States, which will result in a massive transfer of wealth from the Federal Government. This amendment would send $6 billion to these four States on top of that $150 billion they will already be getting.
These oil and gas resources on public lands belong to all of the American people, not just to those of the adjacent States. They are public resources that belong as much to someone living in Kansas, Massachusetts, or Hawaii as they do to someone living in Louisiana or Texas. These are resources that should help every American, not just a select few. The revenue generated from these public resources goes to the Federal Treasury to help pay for Medicare and Medicaid. It helps to pay for our national defense. We can no longer afford to continue this diversion of taxpayer funds to these four States. We need this revenue to reduce our deficit and to get our fiscal house in order.
I had offered an amendment that would have recovered the $150 billion we are going to be sending to these four States, which the majority did not make in order, and now this amendment would take us in the complete opposite direction.
So I commend the gentleman from Louisiana. I can't blame him for trying to get even more Federal money directed to his home State under this program. Yet, if you come from one of the 46 States that is not-- and let me enumerate them again--Louisiana, Mississippi, Alabama, or Texas, you would have to be crazy to vote for this amendment, because they're going to take money away from your States, away from your Medicare beneficiaries, away from your contributions to the defense budget. It will be higher in all of those other States because this money is going to be sucked out of the Federal Treasury, as though through a straw, right into the States of Louisiana, Alabama, Mississippi, and Texas. If you vote for this amendment, you are voting to send that money--$6 billion--directly from your State to the gentleman from Louisiana's State.
I urge all members of the Louisiana delegation to vote against the Markey amendment, and I would give a similar recommendation to the other Members from the other three States. But if you don't come from one of those four States, why would you send $6 billion to those States, money which should be in the Federal Treasury, when it should be used for all of the citizens of our country?
At this point, I yield back the balance of my time.
Mr. Chairman, I demand a recorded vote.