Mr. President, I ask unanimous consent that speakers on the Republican side be limited to 10 minutes each. Mr. President, the U.S. Congress has had its ups and downs, but the way the 110th Congress has handled our energy crisis is a low…
Mr. President, I ask unanimous consent that speakers on the Republican side be limited to 10 minutes each.
Mr. President, the U.S. Congress has had its ups and downs, but the way the 110th Congress has handled our energy crisis is a low point.
High energy prices affect every American, whether they are Democrat, Republican, or Independent; whether they are labor unions, school teachers, or lawyers; whether they are white, African American, or Hispanic. But no group is hurt more by high oil prices than the poor. Restricting our Nation's oil supply is the most regressive policy imaginable.
All we have heard from the other side is let's blame oil company profit; let's blame oil companies for sitting on the leases; let's blame speculators for responding to a very small spare capacity of oil in the world.
Our citizens are begging us to drill more, but all the Democrats can do is blame more. Listening to the energy debate these past few days, I couldn't help but wonder whether the Democrats really believe their own arguments. Are they really drinking the Kool Aid the anti-oil environmentalists are serving them, or do they actually know better?
I am no expert on energy, but the arguments the anti-oil environmentalists are selling to my friends on the other side of the aisle are so obviously wrong that I would like to put some of their statements to the test.
Let's take a look at this chart here.
The first item on this chart states that an oil lease allows an oil company to drill. The truth is you cannot drill on your own oil leases without a permit to drill, and there is a huge backlog of applications for permits to drill. It is a very long, expensive, and frustrating process.
Let's take a look at this chart. This is what happens after an oil company gets a lease. First of all, the oil company must pay rental fees to hold onto its lease. Often, the detailed analysis of the actual energy resource is completed after a lease has been won. If the analysis indicates the resource is economic, the oil company must apply for a permit to drill, and that kicks in the NEPA process requiring the environmental studies.
And then there is still no guarantee the oil company will get a permit to drill. But if they do, there are still serious hurdles to overcome. They must comply with hundreds of State and Federal environmental rules, seasonal restrictions due to wildlife patterns, and very, very often, they must overcome protests and lawsuits by anti- oil environmentalists.
So let's go back to our first chart. We can see that this first statement is not true, so I'll put an ``F'' there for false.
The next line on the chart states that companies don't want to drill. The irony here is astounding, because the Democrats have been fed this line by the very same anti-oil extremists that are putting up all the lawsuits against drilling permits.
Let's take a look what the trend has actually been with oil permits and drilling.
The data on this chart shows what's been happening at the BLM Office in Vernal, UT. This is very representative of the rest of the country. Since the year 2000, applications for permits to drill have doubled, permits granted by the government have doubled, and new wells completed since the year 2000 have doubled. And even with a doubling of efforts by the government and the oil companies, there is still a very large backlog of applications for permits to drill. Mr. President, these are
facts, so I hope we can stop all the innuendo about oil companies not wanting to drill.
The last line is based on data the BLM just gave me yesterday, and this number applies to all oil and gas permitting in the Nation. Since the year 2000, environmental protests against oil and gas permits have gone up 700 percent.
It is an insult to the American people to mislead them this way. Is it any wonder that Americans are getting completely fed up with this Congress?
Anyway, let's go back to our chart and put a big ``F'' on the line that says oil companies don't want to drill.
And that leads us to the third line on the chart, which states that the release of final commercial lease regulations on oil shale would lead to a ``fire sale'' on oil shale leases.
It is an argument I have heard more than once, but a very quick review of existing oil shale law proves it to be false.
I was the sponsor of the Oil Shale and Tars Sands Development Act. It is now Public Law and referred to as Section 369. Senators Pete Domenici and Wayne Allard were heroic supporters of the proposals, and we consulted with Senators Jeff Bingaman and Ken Salazar on the legislation.
It is worth taking a look at the actual language in the law, and I am paraphrasing to save time, but the law states it very clearly:
``The Secretary shall consult with the Governors of the States . . . to determine the level of support and interest in the States in the development of tar sands and oil shale. . . .''
Even after final commercial lease regulations are published, not one lease can be put out to bid until after the Secretary of the Interior consults with the relevant Governor to determine the level of State and local support for such activity. Then the law states that:
``If the Secretary finds sufficient support and interest exists in a State, the Secretary may conduct a lease sale in that State.''
Notice that the Secretary may move forward only if there is support from the State. Anyone who reads the actual law, Mr. President, will see that issuing final regulations on commercial oil shale leases will not lead to a fire sale.
This chart shows the five major steps the law requires before the final regulations are released and then another set of major steps that must be taken after the final regulations are published, but before a single lease can be put up to bid.
A fire sale is when a business sells damaged goods at basement bargain prices. The public auction of oil shale leases is just the opposite. The auction would offer up valuable leases of only to the highest bidder. The winners will be paying a premium price to the Government with the goal of getting a return on their investment, and the Government wants them to be successful, because everyone wins when energy production occurs.
The oil shale law specifically ensures that no company will just sit on commercial oil shale leases. The law reads that ``The Secretary shall, by regulation, designate work requirements and milestones to ensure the diligent development of the lease.''
So let's go back to our original chart, and put a ``F'' on the third line. Oil shale leasing is, in every way, the opposite of a fire sale.
I am the sponsor of the FREEDOM Act, which provides strong tax incentives for plug-in electric vehicles. I also sponsored the CLEAR Act, which is the existing law giving tax credits for hybrids and alternative fuels. I understand that there are alternatives to oil, but I also choose to deal in the real world when I make policies. Just as with oil shale, each alternative will take years to fully develop, but we must work on them today if we want the benefits tomorrow.
Today, alternatives make up only about 3 percent of transportation fuels, and most of that is corn ethanol.
I hate the mandate on ethanol, but I am on record as a strong supporter of incentives for ethanol.
But let me remind my colleagues of some of the points I made on the Senate floor earlier this week. And these facts are based strictly on Government data and science journals.
If ethanol production were expanded to make up 20 percent of our fuel supply, it would move into drier areas and require irrigation.
This chart shows a comparison of how much water would be required to make that much ethanol, compared to the amount of water for the same amount of oil shale. The idea that oil shale needs huge amounts of water is an absolute myth, but the media keeps repeating it.
This chart shows us how much land would be required to produce enough ethanol for 20 percent of our fuel supply. As you can see, it would take the equivalent of Nebraska, Kansas, Iowa, Missouri, and South Dakota combined to grow that much ethanol. This is calculated based on data from the Energy Information Administration which shows it would take about 353,000 square miles to make that much ethanol, which is represented by the green area on the map.
Now, you probably cannot see it from your chair. But this red arrow on the chart points to a tiny dot on the map, which is the smallest county in Kansas. It is about 156 square miles, and that is all the area it would take to produce enough oil shale for 20 percent of our fuel supply. It is important to remember that after an acre of oil shale is used up, the law requires that it be restored back to nature.
If you look at this large green area on the map you can recognize that ethanol requires a lot of land cultivation.
The February issue of Science magazine published a peer-reviewed article which states that when land is cultivated, it releases gigantic amounts of CO2 into the atmosphere.
The Science article determined that because of the land disturbance associated with corn ethanol production, ethanol emits 93 percent more carbon than gasoline. And switchgrass, even when grown on existing corn lands, emits 50 percent more carbon than gasoline.
On the other hand, the Department of Energy calculates that oil shale, without using any carbon capture technology, emits only 7 percent more carbon than gasoline.
Whether you are talking about water, land use, or greenhouse gases, oil shale is certainly an improvement over ethanol. I continue to support ethanol production, but I know it is limited in what it can do.
On the other hand, as you can see by this chart, we have between 1 and 2 trillion barrels of recoverable shale oil in the United States. That is a pretty important number, because it is about the same of amount of the entire world's proven oil reserves. All government has to do is get out of the way.
Unfortunately, Congress has been exceedingly dysfunctional when it comes to energy.
On one hand they complain about oil companies sitting on oil leases, which we know isn't true, and on the other hand they ban development of our Nation's biggest oil resource, oil shale.
I wish they would make up their mind. And so do the American people, especially those Americans who fall well under the poverty line.
Let's take a look at the last item on our energy quiz today. It states that our poorest citizens spend about half their income on energy costs.
A book written by one of our Nation's civil rights crusaders, Roy Innis, shows how the poorest of the poor spend up to 50 percent of their income on energy needs. Can you imagine the impact the anti-oil agenda has had on these Americans?
So, for this final item, I will be marking it with a ``T'' because it is a true statement. Historically, the poor have looked to the liberals to promote their needs in Congress, but on energy, they have been sold out.
Earlier this month, a group of protesters came to Capitol Hill calling on Congress to stop the war on the poor by groups and congressmen who are closing off America's energy resources.
Included in the group were pastors and civil rights leaders calling on this body to unlock America's oil resources for the benefit of Americans and especially for the benefit of lower income Americans.
One of the participants was Bishop Harry Jackson. I would like to quote some of his remarks for the record. These are his words:
I am a registered Democrat, but this has nothing to do with
partisan politics. Unless the public understands that there
are specific people and organizations that are fueling this
war against the poor, nothing will
change and the poor will continue to suffer. We will unmask
those behind this war regardless of their political party or
ideology. Party labels and partisan ideologies are
meaningless when it comes to protecting the lives of
America's most vulnerable citizens.
Democrats in Congress must choose between the very well funded extreme anti-oil interests, or the poor, because on energy prices, there is no compromise between the two. To be honest, I believe Americans have put their finger on this conflict, even before their representatives in Congress have fully begun to understand it.
Representative Henry Waxman passed a law that bans the Federal Government from purchasing oil sands from Canada, unless it can be proven that it has a lesser greenhouse gas footprint than gasoline. In other words, we are turning away 1.5 million barrels of oil a day from a friendly neighbor in favor of oil from the Middle East and Russia. What about the greenhouse gas footprint of shipping that oil all the way over here?
Last year, Representative Mark Udall, who represents Aspen, CO, passed the one-year moratorium on commercial oil shale leasing. At first, I thought he was simply seeking a little extra time for comments, but a year moratorium on leases is a very long time. Now he is trying to extend the moratorium for another year.
I guess there are not too many poor in Aspen. I love Aspen and the people there, but it is no secret that it is home to plenty of wealthy elites and environmentalists. I have no problem with Representative Udall choosing the elite anti-oil crowd over the poor. But let's be honest about the choices we're making around here.
Just a couple months ago a local Aspen newspaper reported about how the city of Aspen has been besieged with building permit applications. The article states that new building permits every day equate to about $2 million. From what I know about Aspen, I am sure there are some very nice brandnew homes, stores and restaurants going up, and more power to them.
Ironically, the local governments in Colorado's oil shale areas support oil shale development. But it is the wealthy environmentally minded citizens like the good people of the not so nearby Aspen who are opposing it. I addressed the environmental benefits of oil shale production earlier in my remarks, but extreme views are sometimes extremely hard to change.
The American people are not asking for a big appropriation or some difficult action by Congress. They are not asking us to give oil companies big subsidies or environmental loopholes. All they ask is that this Congress stop locking up our domestic oil resources. They are asking us to stop relying on foreign governments who are much smarter than we are about developing their own oil resources. They are asking us to find more and use less.