Mr. President, we are trying to wrap up many important issues before we leave. One issue that has remained elusive at this point is the solution for our offshore energy bill. The House has passed a version; the Senate has passed a version.…
Mr. President, we are trying to wrap up many important issues before we leave. One issue that has remained elusive at this point is the solution for our offshore energy bill. The House has passed a version; the Senate has passed a version. I am here to talk about the benefits of the Senate approach to this subject since there seems to be some real confusion on the part of some of the House members about the Senate approach. I have had many private conversations and many meetings, but I thought I might try to clarify a few things as we seek to understand each other a little better.
I have great respect for many Members on the House side. Chairman Pombo and others have worked very hard. I know they are very sincere about trying to find new avenues for domestic production. It is most certainly a goal I share and that many Senators in the Senate share, Republicans and Democrats.
We have had our arguments, knockdown, drag-out arguments about ANWR. I am clearly on the side that supports production in ANWR. I happen to be in a minority of Democrats on that, and we could never pass that in the Senate, or have not to date. We have been debating it now for 30 years. But there is consensus--there is consensus--in the Senate about opening a significant area in the Gulf of Mexico to help bring much- needed oil and natural gas to this country.
I wish to put into the Record from the Consumer Alliance for Energy Security what they say about natural gas:
Natural gas is used to make fertilizer for ethanol.
For those who are arguing for more ethanol, ethanol needs sugarcane, ethanol needs corn. We need fertilizer to grow sugarcane and corn.
Natural gas is used as a substitute for diesel fuel in our
buses and fleet vehicles.
Electric utilities use natural gas to generate clean power.
Natural gas is a raw material that goes into lightweight
cars for fuel efficiency, wind power blades, solar panels,
building insulation and other energy efficient materials.
Natural gas is used to make hydrogen fuel necessary for
fuel cells.
They say:
In the face of declining natural gas production, consumers
are hungry for a solution to our energy crisis.
The Senate has provided a solution. Democrats and Republicans agree-- we need more natural gas. So we have carved out an area. Shown on this map, is an area that is under leasing moratoria right now and which has been under leasing for the last 15 or 20 years. It has been closed off to production--8 million acres.
But this Senate, in a historic vote, has decided that we need the natural gas. We believe in what the Consumer Alliance and thousands of organizations have stepped up to say. We need natural gas. We are prepared to open this section--8 million acres.
To put this in perspective, ANWR is only 2,000 acres. So when critics of our approach say the Senate bill does not do anything, then, why did we debate for 30 years over nothing? If we debated 30 years only 2,000 acres, why is 8 million acres nothing? I do not think that is true. It is obviously incorrect. Eight million acres is a great many more than 2,000 acres. The reserves here are thought to be substantial.
Shown on this map is the oil discovery that was announced 3 weeks or 4 weeks ago announced: the Jack well, as it is commonly known, discovered by a Chevron partnership. This one well, drilled 28,000 feet--10,000 feet of water and 18,000 feet of land--will double the reserves of oil and gas in the
United States of America. This one little square, right here.
So when people in the House of Representatives say, opening up 8 million acres here will do nothing, they are dead wrong. We might find four or five ``Jack'' wells in here. We could find 100. How would we know? Because no one will let us go look. And if we do not pass this bill, which the Presiding Officer helped to pass and helped to craft, we will never know, and our industries will continue to lose jobs and lose their competitive edge. We are losing thousands of jobs.
Experts estimate that there is enough gas in this section alone to run 1,000 chemical plants for 40 years. That lessens the need to go drilling in ANWR. But this bill is not about ANWR. And the good news about this is, the States of Florida, Alabama, Mississippi, Louisiana, and Texas are all in agreement. Republicans and Democrats are in agreement. They understand the need. They want to step up and help America. This money generated by this bill will go to support these coastal communities and reduce the deficit.
Mr. President, I ask unanimous consent for 3 more minutes. I see my colleague from California.
Mr. President, I appreciate that.
Instead, the House of Representatives has proposed a bill that is breathtaking in its reach, and then wonders why we cannot pass it. In the House bill, the House committee decided to open up drilling along the entire Atlantic seaboard, and they took it upon themselves to redraw state boundary lines. Very few people have seen these state boundary lines, so I decided I would go ahead and show this map so people can see it.
These lines have not been approved by the Commerce Department. They have not been approved by the Interior Department. They have not been seen by the Defense Department. And MMS does not certify these lines. There are 200 years of maritime law that went into developing the original lines that looked like this, as shown on this official Interior Department map. The lines shown on this Interior Department map are the lines that we are all governed by now. But the House committee decided to go into a room and redraw the lines without talking to the Governors of these States, the Senators from these States, and I am not even sure the House Members from these States ever saw these lines.
They ask me why I can't pass this bill on the floor of the Senate. What is wrong with Senator Domenici and Senator Landrieu. They can't get this bill passed. I would suggest it is going to take a few hearings, a few public meetings, and a little bit of work over there before we can get something such as this passed. I will help them. I actually believe in what they want to do. I may be in the minority over here. I will help. But I do not think I can get this done this weekend. But what I can get done this weekend--what we can get done this weekend--is to open up 8 million acres filled with the natural gas and oil this country desperately needs. We can send a positive signal and a necessary signal to the marketplace that America is serious about finding more domestic reserves for oil and gas. And we can send a hopeful signal--as the Saints did when they carried that ball across the goal line earlier this week several times; an extraordinary game-- to the people of the gulf coast that we still know they are suffering, and we are going to pass a bill that helps to generate jobs in this region, saves their wetlands, builds their levees, and reduces the Federal deficit.
Our bill respects the coast of Florida, it reduces the deficit, it saves the wetlands, it builds levees, and it gives everybody in America natural gas--and there is a problem with this bill?
I do not know what the problem is. We had 72 Senators who worked all year on it. I respect the House of Representatives. I understand what they want to do. But it is too broad of a reach.
The Senator from California is on the floor, and she has been very gracious, and I will only take 1 more minute. I did not have time to go get the model they have for the west coast, of which their bill wants to open up west coast drilling. With all due respect to Congressman Pombo, he does not even have the support of his own Governor in his own party. And he wonders why Senator Domenici cannot get his bill passed? He cannot get it past his California legislature. How am I supposed to get it past the Senate?
So I am asking the House colleagues, please be reasonable. Take this a step at a time. Some people object to drilling on the Atlantic coast. I do not happen to be one of them. I will help them, but we cannot get that done this weekend. And it may never happen because you have to get political support from these States.
But I will conclude with this: We have a great coalition in the gulf coast. The people of the gulf coast know how to drill for oil and gas. The technology is superb. We minimize the environmental footprint. We know where the gas is. Let us go get it. Then we can use that money to continue to help us restore our coast.
So I am pleading with my colleagues. I will work with you. I will continue to work with you. So will Senator Domenici. And I think I can speak for the Senators from Florida, as well as the Senators from Mississippi, Alabama, and Texas. We will put our shoulders to the wheel to do what we can, but let us go forward.
In the Senate, the Gulf Coast States came together and created a formula that is fair to all. Each coastal-producing State shares in the revenues received according to the length of their coastline, their proximity to oil and gas development--and the likely impacts from that development.
Also, the Senate formula recognizes that some of the Gulf States have provided oil and natural gas to the country for decades, receiving the brunt of the impacts, and few of the benefits. For that reason, States that have hosted the industry for the longest would have secured marginally more of the revenues by way of compensation.
The Senate bill also recognizes that the minerals of the Outer Continental Shelf are a national resource--belonging to the Nation as a whole. That is why every State receives the majority share of the revenues: 50 percent would go directly to the Federal Treasury; 12.5 percent would go into the Land and Water Conservation Fund--a conservation royalty that benefits all 50 States.
Arriving at a formula that was fair and equitable was not easy: each of the Senators from the four gulf-producing States met on a daily basis over a series of weeks.
Ultimately, the gulf coast was able to stand united: all ten Senators from the Gulf States voted in favor of the Senate bill. But it was not an easy feat.
Agreement among neighboring States is critical--and difficult to achieve. What is at stake are billions of dollars and the Nation's energy security.
The House bill creates State boundary lines that would divide the Federal OCS into zones controlled by the closest State. Under the House proposal, States have the power to authorize or halt energy development activities within this zone. They also have claim to the lion's share of the revenues generated within this zone.
The Senate and the House take fundamentally different approaches to two key issues:
The Domenici-Landrieu bill would open 8.3 million acres in the Gulf of Mexico--a region that has continuously been one of the most productive oil and natural gas basins in North America.
Since the world's first offshore oil well was drilled near Creole, LA, in 1933, the Gulf of Mexico has provided the Nation with more than 15 billion barrels of oil and 165 trillion cubic feet of natural gas.
Each year, offshore production from the Gulf of Mexico offshore accounts for more than 560 million barrels of oil and 4 trillion cubic feet of natural gas. If you add in the onshore production from the neighboring Gulf States, this region produces more than 1 billion barrels of oil each year. That is more than the imports from Saudi Arabia and Venezuela combined.
Conservative estimates show that the Senate bill will increase the Nation's supply of affordable, domestically produced energy by 1.3 billion barrels of oil and 5.8 trillion cubic feet of natural gas.
That much crude oil will produce enough gasoline to drive 1.7 billion cars
from DC to New York--with plenty left over to heat 1.2 million homes for more than a decade.
These lines were drawn without any input from the coastal States, without input from the Minerals Management Service, the Coast Guard, or other stewards of America's oceans.
In fact, the Minerals Management Service had painstakingly crafted ``State Administrative Boundaries'' in an effort to clarify which State has the most interest in the area seaward of its coastline because of the increasing number of commercial activities on the Federal OCS.
These boundary lines--which were crafted in consultation with the MMS, the National Ocean Service, the Department of State, as well as in accordance with past Federal and Supreme Court decisions, and significant public input--were disregarded in the House bill.
States that were deemed more likely to drill off their coasts seem to have been granted more territory. States that have made their opposition to OCS activity well known, seem to have had their territories trimmed down significantly.
Virginia's gain was Maryland's and North Carolina's loss. Georgia's gain was Florida's loss.
I support increased access to the Nation's offshore energy resources. I believe strongly that we need to make this Nation more energy independent and less reliant on foreign sources of oil.
But I am also a pragmatist and know that we cannot overturn 30 years of poor energy management policy overnight--without consulting the States, without consulting our Federal natural resource managers.
I encourage our neighbors on the east and west coasts to re-examine their failed policy on moratoria on developing energy resources from the Federal Outer Continental Shelf. But I cannot force them to do so. Instead, we need to have an open dialogue on this issue and work to improve U.S. policy in this critical arena.
That much natural gas will sustain 1,000 chemical plants for 40 years--and those plants would provide jobs for about 400,000 Americans.
The potential of future drilling in the Gulf was recently underscored by a massive oil discovery miles of the coast of Louisiana.
Some analysts believe that this single find in the deepwater Gulf of Mexico could produce more than 15 billion barrels of oil.
By 2012, daily production from this single prospect could total 800,000 barrels of oil per day of light, and more than 1 billion cubic feet per day of natural gas.
This discovery effectively increased the total proven oil reserves of the United States by 50 percent.
While the ``Jack'' discovery is not directly adjacent to the 181 and 181 South area, some geologists have speculated that these mineral-rich ridges could extend eastward into the 181 and 181 South area.
This find shows that the Gulf of Mexico remains one of the most promising oil and natural gas regions in North America and the world.
It is likely that major finds such as the ``Jack'' prospect will spur an increase in exploration and production activity in the ultradeep waters of the Gulf of Mexico.
It is highly likely that this discovery--and other major finds in the Gulf of Mexico--will cause bonus bids to escalate at future lease sales, and increase revenues flowing to the Federal Treasury.
In contrast to the bounty available in the Gulf of Mexico, the MMS anticipates that the total production off Virginia will be about 560 million barrels of oil and 327 billion cubic feet of natural gas.
Compare this to the resources opened by the Senate's Domenici- Landrieu bill in the Gulf of Mexico which the MMS estimates will total 1.3 billion barrels of oil and 5.7 trillion cubic feet of natural gas. The Virginia proposal has 4.7 million acres.
Domenici-Landrieu is adjacent to existing infrastructure--pipelines, ports, and refineries. The area off Virginia is not adjacent to industrial infrastructure.
Virginians may want to open their shores to offshore oil and gas production--a goal that I share and support--but Virginia's waters are quite close to the shores of North Carolina, Maryland, and Delaware.
Why is this a problem? In 1990, the State of North Carolina successfully forced several oil companies to cease all activity and relinquish their rights to drill more than 50 miles from shore, far out of sight from shore.
Similarly, California, Maine, and Florida have repeatedly proven that they can shut down production, even when it is far from their shores.
Today, the President has acquiesced to his brother's request that no new drilling be allowed within 100 miles of Florida. As a result, no new leases are allowed off Alabama--despite the fact that their oil and gas has been safely produced in that region for more than 30 years.
Mr. President, I ask unanimous consent that excerpts of document from the Consumer Alliance for Energy Security and other relevant material be printed in the Record.
Mr. President, I yield the floor.