How much time remains? I thank the Senator for yielding. I come to the floor to oppose the tax that has been proposed and is now before us brought by the Finance Committee. It is very easy politically to stick it to the big boys, and that…
How much time remains?
I thank the Senator for yielding.
I come to the floor to oppose the tax that has been proposed and is now before us brought by the Finance Committee.
It is very easy politically to stick it to the big boys, and that is the political game which is being played out on the floor of the Senate as we speak. Stick it to the big boys. OK, we are going to stick it to the big boys, $32.1 billion worth of taxes. What will it do for us? Will it change the price at the gas pump today? No. In fact, we have just heard the Senator from New Mexico say it could possibly raise the price of gas in the long term. Hasn't this Senate heard the plea of the American consumer over the last 6 months about $3 gas? Don't we get it today or do we just want to play petrol politics? That is what the Finance Committee has done; they have played petrol politics. They are sticking it to the big boys, and they are going to put it in the green machine. The green machine may yield some energy in the future, but it sure isn't going to change the price at the gas pump tomorrow or the next day or next week or next year. If they argue in disagreement with me, my answer is simple: Prove it. Prove that you will change the price at the pump. Or will the big boys simply try to pass it through to the consumer? We will find out, won't we, if this bill passes. That is why I am going to have to oppose cloture on the Baucus provision of taxes, the petrol politics of this issue.
Let me show you the petrol politics of the real issue. Here is where the reserves in the world exist today. Here are the big boys of America--Exxon,
Chevron, Marathon. Do we really think if we stick it to these three and more we will change the world? No. The world today from the standpoint of energy is controlled over here on the left-hand side of the chart. It is controlled by Saudi Arabia, Iran, Iraq, and so on down the line. They control the known reserves. They control the world's oil supply. They are the big boys. We are not sticking it to them. In fact, we are handing them a golden leaf. We are saying: You control the world oil supply, and we are dependent upon you for 60 percent of our supply. But we are going to penalize our producers because of the petrol politics of this issue.
There is another petrol game being played out. Petrol politics is being played out on the floor of the Senate, but petrol nationalism is being played out by these companies and countries of known reserve. Every one of these producers controls their supply; their nation's government and their nation's government's companies control the supply of oil. They can turn the valve on or off. Every time they do, the American consumer ultimately pays more. That is called petrol nationalism. I believe when we talk about the war of energy today, that is what we are involved in. We are involved in a war on who can produce energy and can we become energy secure so that we don't have to be dependent upon Saudi Arabia and Iraq and Iran.
We know what is happening in that area of the world today, the phenomenal instability. Not only do these nations play petrol nationalism, they also play with something else: They have the weapon of mass disruption. Let me repeat that. These nations hold the weapon of mass disruption. You change the price at the pump a couple of dollars because you turn the valve off in these countries, and you hit this economy like a freight train.
What are we going to do today? We are going to tax it a little more. That is all this Congress really knows how to do, is tax. They don't know how to produce. We don't produce. We get out of the way of production. We encourage production, but this bill will not produce one barrel of oil. ExxonMobil will produce a barrel of oil. Chevron will. Marathon will. The rest of these countries will. But we don't. We are now stepping in the way of that production. We are now penalizing that production.
The senior Senator from New Mexico talked about where the greatest reserves of America lie today--offshore. Yet we are saying: If you want to play out there, if you want to go out, find it, drill, we are going to tax you. We are going to penalize you instead of encourage you and incentivize you to discover, to bring it to the wellhead and to bring it to America's shores and to refine it for the American consumer.
Anybody in a reasonable way who doesn't want to play the political game being played out on the floor as we speak--petrol politics--needs to vote no on cloture.
If the American consumer thinks these companies are going to pay the $32.1 billion in taxes, they have it wrong. They are going to pay it at the pump. The Baucus bill pumps tax dollars out of the back pocket of the American consumer. It does not allow oil to be pumped out of the ground. It does not allow us to hold a stronger political position in the world of petrol nationalism. That is the debate we are going through right now. It is about windmills. It is about cellulosic. It is about all the things I like. But it really isn't. It is antiproduction. It is anticonsumer. It is anti-American to deny our Nation's economy access to the world energy supply. That is what we are doing. Let's allow Saudi Arabia and Iraq and Iran to grab us by the gas nozzle and jerk us around every time they choose. This tax package suggests that could start again tomorrow because we are not going to get ourselves back into the business of production.
I yield the floor and retain the remainder of my time.
Will the leader yield?
Mr. President, on behalf of our colleagues, is it possible at this time for the leader to give us some timeframe as it relates to the packaging and possible activity this evening and into tomorrow?
I thank the leader.
Mr. President, let me thank the Senator from North Dakota for a very succinct presentation about the reality of why we have spent the last couple of weeks debating energy in the Senate.
There is another reality check that I think most Americans fail to understand when it comes to why they are paying $3-plus at the pump, and that reality is that clearly demand in this country has outstripped supply by a significant amount. We have increasingly, since the 1950s, begun to have to
go elsewhere than just in and around our country to meet the hydrocarbon or the crude oil needs of our refiners and, ultimately, the gasoline needs of our consumers. As that dependency has grown on foreign sources of energy, I would argue that America became increasingly less secure.
Now, I am one who in the 1980s, and probably the early 1990s, thought it would be just production, production, and more production. I have changed. I have spent a lot of time looking at the energy equation of our country over the last couple of decades and said, no, you have to do a variety of different things.
Production is important. Our President said we are hooked on hydrocarbons. We are ``gasaholics,'' if you will. We are and we will be for an extended period of time. We have been there a long while. We have a multi, multibillion dollar infrastructure that supplies that energy out to the suburban access points, and you don't change those overnight. You don't change the technology that ultimately gets you there, but you do change. And America must change.
Some say you don't need anymore production, you can go to efficiency, you can go to new technology, and that alone will change the equation fast enough to save America's consumers and the economy.
I disagree with that. I think we are going to go there. In fact, the Senate by a voice vote a few moments ago passed a new efficiency standard for automobiles that I support. I am a Senator who has never supported that in the 27 years I have been in the Senate. So while I may be asking the Presiding Officer from Florida to change a little bit as it relates to the resources that are offshore Florida because I now know the technologies can bring those resources out without damaging the environment, here is a Senator who has changed also because I do believe that when you get to a fleet that burns less fuel, you are going to get to an America that needs less hydrocarbons over time.
That is why the Senator from North Dakota and I introduced legislation earlier this year that talked about conservation, and it talked about innovation, but it also talked about production and the reality of having to get more production out of our own resources instead of relying on one of the most unstable, riskiest areas of the world to gain that production.
If the world were at total peace today and the world's oil supplies were managed by companies and not countries, my guess is crude would not be at $60-plus a barrel. It would be at $40-plus a barrel and the American consumer would probably be paying a dollar less at the pump. But that is not reality. Reality is reflected at the pump and therein lies one of our greatest problems.
Earlier in the day, we had a great debate about a tax bill, to tax the oil companies by about $30 billion. Somehow that was going to change the equation; it was going to make the world a safer and better place. It was not going to change the price at the pump, not one dime. In fact it had the potential of taking it up.
Here is the reason why. It did not change this equation. What is this equation? These are the known reserves of oil on the globe. Here are the big boys, as we think of them--the big companies. Here is Exxon and here is the British Petroleum and here is Texaco and over here is Marathon.
You can hardly see them on the chart. They don't own the world's oil supply. They manage and own very little of it.
Who owns it? Hugo Chavez, Venezuela--who would love to jerk this country around by its tail--Saudi Arabia, Iran, Iraq. I have named some of the most unstable areas of the world. They own the oil today. We need it because we are dependent on it, because we have done very little about it. That is why the Senator from North Dakota and I said we have to go where the oil is in our country, and the oil is not onshore anymore. The oil is not onshore. It is offshore. We know it is, and we know there is a substantial supply of it. But we have allowed States to put on moratoria and establish a political environment that denies the Federal Government access to its own resources, so the taxpayers of Idaho are paying a higher price for gasoline, in part, because the State of California--the Senator from California is here, the State of Florida, and other States have said you can't drill off our shore. No. No. Even though in California, with the old leases, they are still drilling in the State waters--not drilling but producing--the ghost of Santa Barbara is long gone. There are some who still like to talk about it, but my guess is these young folks sitting around here tonight, who are our pages, don't even remember Santa Barbara or the oilspill that resulted from the catastrophe of a wellhead blowing off offshore years ago.
The reason you don't is because it doesn't happen anymore. The technology of today, the safety of today, the regulations of today have changed the equation.
The Senator from North Dakota talked about a compromise the Senator from Florida worked with us on this past year. This is lease sale 181, where there may be millions of barrels of oil and trillions of cubic feet of gas. We don't know. There is a pretty good idea it is there and it can be produced and pushed into the current infrastructure and America, for a moment in time, will be a little bit more energy secure.
What I am proposing and what many are talking about is what about this area? What about the rest of the eastern gulf? Ought we not be talking about that? Looking at it? Understanding what is there, if technology allows us to produce?
Here is where America's oil is being produced today, in the Gulf of Mexico. We are finding more and more out there as the technologies improve and as we can get deeper into the waters. That is reality. There are those who will give a lot of different arguments about why you should not do it. But I will argue you can do it and that the oil is there and America ought to know about it and they ought to be asking why we are not going there but, instead, why are we increasingly dependent upon foreign nations for our source of oil?
It is a reasonable question to ask. Right now, America has grown increasingly angry because of the price it is paying at the pump. People are not accustomed to using their disposable income for the price of energy as we know it today. That is not what we have done in an economy such as ours. But that is where we are today.
Here is what happens when we rely on other countries to produce our energy for us. We are at war with terrorism today around the globe. This is the French oil tanker off the coast of Yemen in October 6 of 2002, when an al-Qaida suicide boat hit it and set it afire. Here is the vulnerability of all of our oil moving on water. I suggest the ecological problems resulting from this are greater than from any drilling that could occur offshore America today because we expose ourselves to a high risk by the shipment of oil on our ocean surfaces around the world.
That is why I think it is important that we keep talking and allowing America to understand we are not without oil and not without oil reserves. The progressive and environmentally sound development of them over time will help us in this period of transition that will take several decades to move to flex-fueled cars--hydrogen cars, electric cars, all of the kinds of things we think America wants and that in public policy and incentivizing the marketplace we are moving America toward.
It will not happen overnight. In that period of time, while it is happening, America remains extremely vulnerable. Our economy is at risk. There is no question about it. What I have said is this picture demonstrates something that ought to be repeated and repeated again: The weapon of mass ``disruption'' in this country is an al-Qaida suicide boat hitting the side of an oil tanker, time and time again. That is the weapon of mass disruption. The high risk involved, the driving up of the oil prices, the movement of gas by $2 or $3 a gallon in this economy creates havoc everywhere. Certainly, in my State of Idaho it creates tremendous problems.
It is important that I and other Senators recognize that you do not conserve your way out of an energy crisis. You do not innovate your way out of an energy crisis. You do not produce your way out. You do all three.
I am going to continue to work while I am in the Senate to encourage this
Senate in public policy to do all three. I think it is in the best interests of America, our economy, and our national security that we do so. As an American today, I am not only frustrated, I am sometimes angered and embarrassed that we, through public policy, have allowed our country to become so dependent on other parts of the world.
Great nations should not allow that to happen, but we have. Then we make excuses all around us why we can't produce. Petropolitics is a fascinating thing. America gets it. The consumer understands it, and the consumer will grow increasingly angry when they understand that public policy doesn't allow the marketplace to do what it can do best in an environmentally sound way, to provide our country with the kind of energy it needs.
Again, as we debate this bill on the floor and finalize it, my guess is we will do a lot about conservation, we will do a lot about innovation, but we will do little to nothing about production. In the next 5 to 6 years, production is where it is. As we work on innovation, as we move technology from the laboratory to the street to commercial use, production still remains critically important.
I call upon my colleagues to stand up and be counted in all three of these areas. It is important for our country. It is important for our economy. Without question, it is important for our national security. The rest of the world should not tell America what its foreign policy is or will be based on their willingness or lack thereof to produce the oil supply our economy needs.
I yield the floor.
Mr. President, I oftentimes laugh. It is either Iowa, or Ohio, or Idaho. The other side of that equation with the late Craig Thomas, I am Larry Craig, Craig Thomas. His wife is Susan, my wife is Suzanne. It was not at all unusual that sometimes we would get mixed up. People would come to my office looking for Craig Thomas, and would find out they needed to be on the other side of a mountain range and out across a rather wide expanse of land toward Casper, Wyoming, instead of Boise, Idaho.
But I understand. Thank you very much, Mr. President.
I will be brief. We are very close, I believe, toward the final passage of an energy bill that many of us have spent a good deal of time with.
I want to thank a few folks who have spent a lot more time with this issue than I or than the principals on it. Cory McDaniel on my staff, legislative LA for energy, who has spent a great deal of time over the last good many months as we have fashioned the SAFE Act, as we have fashioned a clean portfolio standard versus a renewable portfolio standard, I thank Cory for that effort.
I also thank Frank Macciarola, the minority staff director, and Bob Simon, the majority staff director. We worked closely with them as we have worked our way through this issue. Sam Fowler, counsel for the majority, and Judy Pensabene, minority counsel, have all been very helpful.
I have worked closely with Senator Dorgan and his staff. Franz Wuerfmannsdobler and Nate Hill on his staff have been very helpful; also Colin Jones, a fellow from the National Lab in Idaho on my staff, and Darren Parker, a research assistant, have been extremely helpful. A couple of interns, J.C. Dunkelberger and Brian Riga, have been very helpful throughout all of this effort.
I think those of us who have been in the Senate a long time know this work gets done certainly by us in some instances but by our staff in most instances. They spend a lot of time, they develop a level of expertise in working with us on some of these issues.
I thank these men and woman for their assistance in a complicated process. I hope we can finish and produce a work product that will come back to us in a reasonable form that many of us can support.
I am frustrated we are potentially moving a bill out of the Senate that does not have any production. It is all about the future and the outyears. I do not think America worries about the outyears when they go to a pump and pay $3 and 10 or 15 or 20 cents a gallon. They worry about tomorrow and next year and the next year. That is what I think all of us have voiced in this debate.
Somehow it is not right anymore to drill holes in the ground and pull out oil and refine it. I do believe that still fits into the equation and will for several decades to come, as we move to flex fuel, as we move to hybrids, as we move to hydrogen, as we move to electricity, as we are, and as we will continue to, and we must.
But in the meantime, it is a reality that this Nation has to continue to produce. As loudly as I and some on the other side have spoken about it, the Senate collectively does not want to seem to go there anymore. My guess is the American consumer, tragically enough, is going to pay the price. I hope that ultimately we do get some more production built into this legislation or other public policy as we move down the road because it is the reality of where we are. While we work our way away from it and take this great economy and start shifting it and moving it around to new economies in the field of energy, it takes a great deal of investment that the private sector will make, and it takes the kinds of incentives, and it takes a substantial amount of time that I do not think is as reflected in this policy as I would hope, and as I have hoped it would be.
I yield the floor.