Mr. President, I ask unanimous consent to speak as in morning business for 10 minutes. Mr. President, I speak today of my strong concern over what I believe are troubling movements in the Western Hemisphere in relation to U.S. energy…
Mr. President, I ask unanimous consent to speak as in morning business for 10 minutes.
Mr. President, I speak today of my strong concern over what I believe are troubling movements in the Western Hemisphere in relation to U.S. energy independence, energy security, and competitiveness of the U.S. oil and gas industry in the region and this country's political and economic influence in our own backyard.
For all the right reasons, in the past few years we have been appropriately focused on developments in the greater Middle East as we have engaged in a global war on terror and fought in Afghanistan and Iraq. Again, we are absolutely right to be engaged in conflicts in that region. But it is dangerous for any region to have a monopoly on this country's attention.
At home, in this Senate, we have engaged in many debates regarding U.S. energy independence. This issue was first recognized in World War I, when Winston Churchill stated that the answers to energy security ``lie in variety and variety alone.''
Energy security is becoming a hot topic, and many Senators--Democrats and Republicans--have been on the floor the last few days talking about tight oil markets, high oil prices, threats of terrorism, instability in some of the exporting nations, nationalistic backlashes in other fiercely competitive areas and supplies, geopolitical rivalries, and all countries' absolute need for energy to power their economic growth.
We have no time to waste to move forward on a sound national energy policy. Many of us in this body have taken the first step. We passed last August a national energy policy. By its action, we agreed to drastically decrease our energy dependence on the Middle East. Now our economy in energy is working in that direction, slowly, because of the phenomenal investment in time it takes to turn something as big as our energy industries of all kinds.
In 2005, the U.S. obtained 41 percent of its total petroleum imports from OPEC countries, which equals 27 percent of total U.S. consumption.
In order to reduce our reliance on Middle East energy sources and strengthen our Nation's energy security, it goes without saying that our energy sector must be doing business elsewhere. No doubt, the closest, therefore the most economically viable, option should be to turn to our own backyard or should I say ``-yards.''
Unfortunately, that is hard to do when we too frequently send our oil and gas companies into international competition hobbled by self- defeating laws and regulations that allow our economic adversaries and our competitors to beat us to the punch right at our doorstep.
I must point out that it is certainly ironic that the same people blocking the American public from obtaining resources in our own country, and in the region, are the same people not offering solutions to the new and very rapidly growing demand across the world.
Frankly, the United States has taken our neighbors in the Western Hemisphere for granted. We have hamstrung the United States energy sector from seeking additional resources in the region while at the same time allowing the likes of China and Canada and Brazil and France and others to freely seek energy opportunities 50 miles off our coast without competition from state-of-the-art technologies and expertise of our own United States gas and oil industries.
I have here a chart that is phenomenally self-explanatory. As shown, here is the coast of Florida, Alabama, Mississippi, and Louisiana. Of course, here is the great peninsula or the Panhandle of Florida down to the Keys. Here is Cuba. And literally, within the last 2 years, Cuba, within their water, 50 miles off the furthest point of the Keys of Florida, has allowed the nations of China and Canada and Spain to start drilling. It will be possible--or should I say it may be possible--to stand on the furthest Florida Key in the near future and see an oil rig drilling in Cuban water.
Did that happen accidentally? No. Why isn't an American company, with the best technology that could do it the cleanest, there? Because we simply have not allowed that to be.
For example, a February 2005 U.S. Geological Survey reported on a possible deposit in the Northern Cuban Basin--this area shown on the map that is all charted off--estimated at 4.6 billion barrels of oil, and possibly as much as 9.3 billion barrels. I would remind my colleagues these estimates are almost the same as the kind we are talking about on the Coastal Plain of Alaska known as ANWR, and it is simply 50 to 60 miles off our coast.
So the question must be asked: What is the U.S. doing while foreign countries and companies are exploring right off the U.S. coast in the Northern Cuban Basin, which is adjacent to the U.S. Outer Continental Shelf and contiguous to this country's Exclusive Economic Zone?
Well, I can firmly tell my colleagues that we are doing absolutely nothing about it. Not one single U.S. company is exploring in these potentially beneficial waters that extend to within 50 miles off the Florida coast. Oh, we are all angst about Gas Lease Sale 181, and it is at least 120 miles off of any coast. But stand on a high place in the lower Florida Keys someday and you may see an oil rig, and it will not be ours. It could be Red China's, or certainly mainland China's. I guess that is the politically correct thing to say about them now. And, frankly, ladies and gentlemen, it is China, and they are drilling in our backyard.
I am certain the American public would be shocked, as this country is trying to reduce its dependency on Middle East oil, that countries such as China are realizing this energy resource. In my opinion, China is using the area off our coast and in the Cuban national waters as a strategic commodity reserve. It is doing this by acquiring exclusive rights in the emerging Cuban offshore oil sector, thereby forever closing the door on those resources to the United States itself and dramatically impacting our foreign policy in the region.
As the administration recently pointed out in its National Security Strategy, China has quickly become the world's second largest user of petroleum products. Additionally, the administration's most recent National Security Strategy appropriately points out that China is ``expanding trade, but acting as if they can somehow lock-up energy supplies around the world or seek to direct markets rather than opening them up.''
We will miss the boat--because, folks, this boat will sail only but once--if we continue to deny ourselves the right to allow our companies to engage where they ought to be engaging, where they have the talent, the resources, and the expertise to engage. But, instead we are by our action forcing potentially substandard companies that do not have the talent, the expertise, the environmental know-how, to drill in an area that could be phenomenally damaging to the coast of Florida. That is the reality of today's policy in this country.
Higher oil prices will spur others to turn marginal opportunities into commercial prospects with or without the United States. As we saw last week, since demand for oil is so high, any disruption in small oil production--whether it be in Ecuador or Argentina or the Congo or Egypt or Azerbaijan or Bahrain or Sudan or Yemen or Chad--can have a profound impact on oil prices at the pump anywhere in this country. It is for this reason that we must and should act aggressively to diversify our imports and production and compete with other nations around the world.
On top of the economic competitiveness we are missing out on, we are also allowing the energy security of this country to slip away, to slip away right in our backyard. Simply put, too many unknowns lie in the hands of terrorists, instability, and chaos in the Middle East. Therefore, let us think about and rid ourselves of the vulnerability that we forced ourselves into by the responsible and environmentally sound development of our own resources or resources that are just across the fence in our neighbor's backyard. This is the opportunity we now deny ourselves.
I intend to look at these opportunities to bring about potential legislation that will cause this Senate to look and to act responsibly, as it would allow us to deal with these kinds of opportunities, instead of simply denying them. We think we can build a buffer around us to secure ourselves environmentally, and yet we have denied our backdoor. Our backdoor is open. The southern Florida coast is potentially vulnerable to second-rate drilling capabilities from foreign countries that do not have the kind of deepwater expertise and talent that has resulted in no spills by U.S. companies now for well over a decade.
Therein lies the opportunity. Yet we have some who would say: Oh, my, 50 miles we will turn our back on but 100 miles out, oh, we have a problem there. No, folks, we have a problem here, and we have a problem in Cuba. We ought to be recognizing it instead of denying it.
Here is the reality. Here is the sale area, the opportunity that Cuba is now exploiting by allowing foreign countries to come in our backyard or, can I say, just across the fence in our neighbor's backyard. Is it 50 miles off the coast of Key West? Is it 70? Is it 90? It is all of those. And it is potentially an opportunity for us to work with another government in effectively, responsibly, and environmentally exploiting a very valuable resource. We have denied it. Shame on us.
I yield the floor.
I will be happy to.
Well, the point I am making is, we have had the expertise in the gulf to do it and do it right without any environmental damage. But we have denied exploration within a certain margin or buffer zone of the coast.
As shown on the map, in this case, here is Lease Sale 181 that is being talked about today. On the average, from Pensacola, it is 100 miles out, approximately. And this is gas.
This is oil and gas. At the closest point, we believe, at least to the line here of the EEZ, it is 50 miles.
I simply offer this as an opportunity for the American people to become aware that in their backyard something is going on we are ignoring at this moment, and that we should not be ignoring.
Yes.
I will reclaim my time, Mr. President, since the Senator has answered for himself. It is obvious, training capability. We also know--and the military will agree--that once a well is drilled, the rig goes away. There is no surface obstruction. We are talking about 3 trillion cubic feet of gas potentially. We may be talking about a whole region that has 6 or 7 billion barrels of oil in it, let alone trillions of cubic feet of gas. We ought to be concerned environmentally, but my guess is we can fly around them a little bit while it is going on and then the rigs go away. But the oil and the gas keep flowing for the security of the economy of this country.
I don't think citizens at the pumps right now are worried too much about flight patterns, but they are worried an awful lot about a flat pocketbook because we have not allowed ourselves the foresight that I am trying to suggest our foreign policy in these instances denied. You and I will debate 181 and beyond. But at our back door, and a heck of a lot closer to the coastline of your State than any sale proposed today out of 181, toward the east, 50 miles off is where the Chinese at this moment are test drilling to determine whether in fact there is a supply of oil. Then the rigs go in place. Then the environmental issues that you and I are concerned about may well come to be. I hope I am wrong. But I know I am right about this. These sales and test drillings are currently going on.
I thank the Senator for his comments. Before I yield the floor, whether it is the Senator from Florida or Idaho, the American people are saying to us: A foreign policy that allows China to drill in our backyard is not a very good policy.
I yield the floor.
Mr. President, let me speak briefly on what we have done and why I suggest we do not need to do it. I have the great privilege of being the chairman of the authorizing Veterans Affairs Committee. The Senator from Texas has done the right thing to shape the Akaka amendment that calls for, in an emergency spending bill, an emergency of $430 million in this fiscal year, and yet, did you hear what the Senator from Texas said?
Because of what I demanded last year, because of what she demanded, because of what Senator Murray demanded, because of what Senator
Akaka demanded, we now have a much more accurate accounting system, a quarterly reporting system of the Veterans' Administration. Right now, based on the money we gave them for the 2006 budget, they are 4.3 percent under their spending levels as projected.
What does that mean? It means that over $600 million they thought they would spend they are now not spending. So where is the emergency? It doesn't exist. Why are we doing this? How can you spend more in a program in the last half of the year than the whole program was designed to spend in 12 months? And yet in three of the four programs that the Akaka amendment deals with, it does just that.
It doesn't make any sense. Well, any fiscal sense. It may make political sense. But the reality is this is simply wrong. In the 2007 budget, we increased their spending. It is the largest increase in a single department spending than any of our Government. Why? Because Congress--Democrats and Republicans--are phenomenally sensitive to the needs of our veterans, and I am extremely proud of that.
In no way do I suggest that the Senator from Hawaii is less sensitive. It is why he is on the floor and cares deeply about our veterans and our veterans' needs, and we work closely together. But I must tell my colleagues, how can we increase budgets halfway through the year by 75 or 80 percent and spend them wisely, responsibly? We cannot.
This money, if it were allocated, will not get spent. That is why the Senator from Texas, who is the chairman of the Appropriations Subcommittee on VA, said only if an emergency occurs.
Right now there is almost $600 million in unspent money that was designated for the timeframe, and there is a $430 million contingency fund already built into the VA, and we know that. That is a fact. It is operated that way. Do the numbers, folks.
If there were an emergency, we have over $1 billion worth of resources to assure that our veterans have what they need.
I will argue all the time for our veterans, but I do believe our veterans expect us to be fiscally responsible, along with meeting their needs. I cannot imagine that there is a veteran out there today who would suggest that in most instances we are not meeting their needs. We brought one of the finest health care systems in the world to the forefront again. We have expended phenomenal amounts of money on it. And this year, the VA budget is bigger than any other budget in our Federal Government, including Defense during wartime. I am talking about rates of increase, not total dollars.
Those are the realities with which we are dealing. I don't mind standing up and talking about it. Why? Because I can go home to my veterans and say we have been fair and we have been responsible, and I am not willing to listen to the VSOs that ``you gotta, gotta, gotta spend more.'' Is there a limit to how much we should spend? No, there isn't, apparently.
I hope in the end, even though it has been effectively shaped so it won't get spent and it won't get spent because it isn't needed, that the President, as he should, and the Secretary of the Veterans' Administration, as he should, will have the opportunity to declare an emergency if it happens and this Congress will know it now because of what we in a bipartisan way did to make sure what happened a year ago never happens again. We are now reported to quarterly for the first time in the history of the VA. By the last report, they are 4.3 percent under their spending proposal and that $600 million--do the numbers, folks. At a time of major deficits in this country, we are going to spend more of this kind of money? No, we are just going to put it on the books now.
I yield the floor.
I move to lay that motion on the table.
The motion to lay on the table was agreed to.