Western Caucus On Jobs
Mr. Speaker, I'm proud to be on the floor tonight speaking on behalf of the Western Caucus. We, in the West have been working for 2 years now--for a year and a half--to help the Obama administration out with their tasks. In September of…
Mr. Speaker, I'm proud to be on the floor tonight speaking on behalf of the Western Caucus. We, in the West have been working for 2 years now--for a year and a half--to help the Obama administration out with their tasks.
In September of last year, September 11, President Obama said that he would keep trying every new idea that works and listen to every good proposal, no matter which party comes up with it. And so 4 days later, on the 12th of September, last year, we in the Western Caucus, Senator Barrasso and myself, sent a letter to President Obama outlining the ``Jobs Frontier Report''; but, to date, we have not yet heard from the administration.
In that jobs report we have, basically, 40 different pieces of legislation that create American jobs, utilize American energy, and also stop regulations that are in the process of killing, during this year, 3 million more jobs.
So at a time when the Nation is faced with 8.2 percent unemployment, continuing over 8 percent, month after month, for one of the longest periods of time in our history, the administration seems pretty flat- footed on ideas, and so we in the Western Caucus felt like we could assist in that. That's our business. Many of us are familiar with the industries, we're familiar with the job creation that can go on in the Western States. And so we felt that we were offering help to the administration but, to this point, they've been completely unresponsive.
If you go on our Web site, you would be able to see the ``Jobs Frontier Report.'' We've got the cover of it depicted here, and it simply describes in that report the 40 exact pieces of legislation that have already been written and submitted in order to create these jobs.
Now, it would be important to understand that all of these jobs, not one of them requires Federal input, no Federal expenditure, no Federal stimulus, no tax to the American people. And, instead, we're simply trying to solve the problem with the free market that has caused this country to be so great in the past.
We are faced with unemployment in the West that is actually much higher. It's 10.1 in percent in the West, which tells us that the accusations that there is a war on the West, a war on jobs in the West by the administration are verifiable in the unemployment figures.
We have other documentation. Gas prices have doubled since 2009. The public lands are facing increasing restrictions.
The President has recently stated that the oil production is up in the U.S. Well, he stated a correct thing; but what he should have been, from his perspective, talking about is it is all produced on public lands. And when we analyze that, we find out, in 2011, that oil based on public lands, produced on public lands, actually decreased by 14 percent, and that the gas production, natural gas production, decreased by 11 percent.
And so when Secretary Salazar levies his charge that the facts don't speak for what our position is, maybe we could redirect the Secretary to go to the Web pages for the government that would describe exactly what we're showing here, that the oil production that is occurring to increase our total production is occurring on private lands. It is not occurring and is, in fact, decreasing on public lands.
That's because the government is slowing down the permitting process. They're finding new and restrictive ways to implement requirements on people who would be creating jobs, who would be drilling for oil; and each of these processes simply strings out our investment.
We had testimony earlier today, the House and Senate Western Caucus came together, had testimony from two different panels; and one of the panelists explained that they had bought--they had paid for these leases on public land, but they, in fact, then turned them back because the requirements turned it into a proposition that they had not bid on at all.
So we continue to find these case examples of too much interference, too much regulation, causing the energy sector to slow down in certain areas on public lands therefore creating more unemployment and creating a bigger gap.
I'll finish one thought, and then I'm going to yield time to my friend, Congresswoman Lummis from Wyoming, who is a member of the Western Caucus and is the vice chairman of that. We were in the hearing together earlier today.
But at this time in our Nation's history, almost everyone agrees that the greatest threat that we face is the continuing debt and the year- after-year deficits.
There are only three ways that you can solve deficit. If you're spending more money than you're bringing in, as a family, well, you've got a couple of choices. Number one, you can go out and get a second job or retraining to where you make more income so you can increase your income.
Number two, you can cut your expenses down; or, number three, you can borrow money to make up the differences.
The Federal Government is faced with the same conclusions. It either needs to increase revenue, that's by raising taxes; or you can increase revenue by growing the economy, that's creating more jobs.
Secondly, you can cut spending. Thirdly, you can borrow.
Unfortunately, the Federal Government goes one extra step that most families, some families actually resort to, but it's against the law for families. It's perfectly legal for the government. But the fourth thing is to print money. And it's that printing of money, that debt which is not being able to be repaid that is the great threat to the country.
If we were to look across the West and see where we've choked off jobs and put those people back to work in the hundreds of thousands of jobs, then each job would do two things. First, they would cut the cost of the government because those people come off unemployment, welfare, food stamps; but then, secondly, they go to work and start paying taxes. So you have a squeeze from both the cost end, because the government is spending less money; but you also have an increase in revenue so your costs and revenue move together when we create jobs.
That's the reason that the Western Caucus is concentrated on jobs rather than a taxation policy or a borrowing policy and especially not on the printing-of-money policy.
So at this moment, I will yield time to my good friend, Cynthia Lummis, from Wyoming. We welcome you tonight and thank you for being willing to speak on behalf of the Western Caucus.
I thank the gentlelady from Wyoming for her presentation and the facts that she presents.
One of the things that people constantly say who are opposed to oil and gas, to energy coming from America, is that it's impossible to drill and remain environmentally sensitive and safe. I think that those people are simply not looking at current technology.
It is possible with today's technology to drill up to 7 miles horizontally. That would be like drilling from here in this room here across the Potomac River somewhere out into Crystal City and putting a drill bit through a window that's maybe this large.
So what we're able to do is drill down 3,000 or 4,000 or maybe 5,000 feet, turn horizontally and drill and hit the zones of production. It is possible in today's technology to preserve almost the entire footprint of whether we're wanting grass lands or forest lands or whatever. We almost don't have to disturb those because the drill bit actually will be so far beneath the surface, we don't have to go in and clear locations like we did 15, 20, and 30 years ago.
You can also take one well, drill it straight down and then come off that and put multiple well bores so that what used to be spread on a quarter-acre or quarter-mile spacing or half-mile spacing might now today be one well for any number of the distributed wells.
So the environmental impacts of drilling today are probably less than in any other technology.
Wind energy, for instance. Wind is very large in New Mexico. They've got these miles and miles of wind generators standing in the air. Very large footprint. New Mexico is very capable of producing a lot of wind, but one of the problems is that the wind doesn't always blow and the sun doesn't shine all the time.
We had in Arizona recently--one of the operators of a wind farm said that they get about 12\1/2\ percent reliability, that is about 12\1/2\ percent of the time they're getting generated power out of the wind, and it's somewhat higher in Arizona for solar, about 25 percent of the time.
So when people are talking about converting from oil and gas to wind and solar, and I think every one of us believes that we ought to be using all of those forms of energy, but we have to understand that if we go to 12\1/2\ percent reliability, that's the amount of time that when you flip the switch that you're going to have power.
I think most of us are living lives that we demand and need power immediately for use of home appliances, for use of our computers. In manufacturing, you don't want power that is just available part-time. Generally, manufacturing is expensive and competitive. We're trying to keep our manufacturing jobs here, and the last thing we want to do is tell manufacturers you've got to shut down for 10 hours today because the wind is not blowing. The modern economies absolutely demand the predictability of good power when you flip the switch to turn on equipment or to turn on things in your home.
It is possible to provide those energy resources at the same time that we protect the environment. In my father's generation, there were lots of problems. In my generation, I watched as major companies began to clean up things that had originated back in the twenties and the thirties. So it's necessary for us to say that every single one of us wants to see the environment clean. They want clean water. They want the soil to be clean and clean air. And it is possible to achieve both because of the technologies that we have today.
I would draw our attention next to the fact that this administration has been saying that they want an all-of-the-above energy policy. At the same time, then, they're increasing restrictions on public lands and access to public lands. They're making it more difficult for the producers of both coal and electricity generation. They're making it so much more difficult that everyone in the West is struggling under the load.
The reason that the West has to deal with the problem more than the East is that the Western lands are so much more owned by the government. State government and Federal Government own such a large proportion of the land in the West that it's incomprehensible to States back East exactly about the problems that we face. But whether it's endangered species, whether it is restrictions, whether it is EPA, all of the agencies play a part in slowing down the process.
Recently, our administration--through Mr. Abbey at the BLM--said that we really want the BLM across the Nation to lower the time required to give permits. In fact, that time is still abysmally high at over 200 days.
I see my friend from Utah (Mr. Bishop) standing ready to speak. At this time, if he is ready, we'll yield time to Mr. Bishop, and we appreciate your presence on the Western Caucus.
Mr. Bishop is the past chairman and still a respected person on the House Western Caucus. Thank you for being here tonight, and we appreciate your participation on the caucus.
I thank the gentleman for his comments and would, again, accentuate both his points and the gentlelady from Wyoming's about the administration's current war on the poor. We have heard repeated comments from the administration and their representatives that we need to get the price of gasoline up so that people will consume less, that, yes, the price of electricity by our policies will necessarily increase dramatically. The price of electricity increasing, the price of gas increasing, punish the poor terribly. Why would we have policies that are so unfair to the poor? It defies imagination.
Also, following up on my friend's comments about the Secretary saying that it is impossible, just not feasible, even unimaginable that people in the States would take better care of the property than the Federal Government has, I would simply direct the Secretary's attention to those massive forest fires in the West. They are managing our forests in order that they would burn down. They and the Federal Government have choked the bureaucracy full of people in order to manage these resources, but, instead, they manage them in a process that ultimately sees that they will burn down. It's not a question of if but when.
The final comment I'm going to make, and then I'm going to yield to my friend from Colorado, but the President recently asked for $52 million to crack down on speculators, which he claims are the cause of high gas prices. $52 million to crack down on speculators.
Now, speculators, you have to understand that they make their money by guessing which way the market is going to go. Right now they see a government that is choking down access to supplies, so they scratch their head and say, We think maybe the price is going to go up and so they speculate and buy on the assumption that the price of gas is going up, the price of oil is going up, and lo and behold, they're making money.
But if the President were to announce today that he was going to open--and people sincerely believed him, that he was going to open access to Federal lands, those same speculators who today think the price is going to go up would begin to say, Oh, I better buy down, because if I bid up and the price falls, I'm going to lose money. So those speculators would begin to drive the price down.
But he doesn't need $52 million. All he needs to do is give one sentence from the White House that the war on the West is ending and we're going to open the West oil production up again. That would do the trick; no $52 million putting us deeper into debt. It simply makes sense to us from the West because we see it day in and day out.
We're joined tonight by our good friend, Doug Lamborn, from Colorado, and welcome here. It's nice to see you, and we appreciate your participation in the Western Caucus. We appreciate you being here tonight.
That is absolutely true. One point that is often omitted by the opponents of fracking is that the people who most want fracking not to communicate with the fresh water are the oil companies themselves. They drill this million-dollar well bore, then they run casing in the well bore. They put cement outside that casing in order that they can have a nice tight well bore in order to produce the oil that allows them to pump the oil out expeditiously. And when they frack, they frack thousands of feet below the water zones. They're usually right up at the surface. And for contamination to occur, that pressure that is pumped down in the thousands of feet lower in the well would have to come outside the well bore, outside the cement around the casing, all the way to the surface, and then contaminate the water up there. In doing that, they have ruined the entire well bore.
So the companies themselves are watching to see if there's any drop in pressure. That's when you know that you've got something bleeding off. They shut everything down. They patiently look at it. The oil companies, again, are the best custodians of the
water because they don't want to ruin the well that they have spent drilling and a lot of money in completing.
I notice that my good friend, Mrs. Lummis, is back at the podium, and would yield more time to her at this point.
I thank the gentlelady.
Before I yield time to my good friend Mr. Bishop again, I'm reading in today's quotes that Interior Secretary Salazar said that House Republicans live in an imagined energy world. I appreciate his concern and his criticism. I consider it as constructive. But think about this imagination.
The President in March of 2012 said: We can't just drill our way to lower gas prices. We can't drill our way to lower gas prices. That's a viewpoint that could be considered legitimate, except that about the same time he's calling for Brazil and Saudi Arabia to increase their drilling in order to get the prices down so that people in America don't have to pay as much at the pump.
Now, I'm not sure what imagined energy world says that it will cause the price of gas to go down if they drill in Saudi Arabia and Brazil, but it won't cause the price of gas to go down if they drill over here. That, to me, argues that it is that that is instead an imagined energy world.
The Secretary goes on to talk about that these members of the Republican Party are members of the Flat Earth Society in a demeaning term. Now, in my county, you can see from one end to the other, miles and miles; and if you turn and look east, you can see all the way to Dallas 300 or 400 miles away. I do live in a flat part of New Mexico and can see across the line into Texas. And so he speaks in demeaning terms about flat Earth, and yet he's very happy to have all the production of oil and gas that comes from there.
So the flat-broke administration is criticizing the Flat Earth Society. And of the two, I would rather live on flat ground than be flat broke. And so I would yield to my good friend, and then I will close out.
I thank the gentleman.
Senator Hatch is going to introduce this week the West Act, which is a combined 10 bills that we have previously sent from the House of Representatives that are sitting dormant drawing dust in the Senate, and so he is going to lump them together and push them out. Those are a part of our ``Jobs Frontier Report.'' And those acts do things like H.R. 1229, Putting the Gulf Back to Work Act, that's by Representative Hastings; H.R. 1230, Restarting American Offshore Leasing Now Act by, again, Mr. Hastings; H.R. 1231, Reversing President Obama's Offshore Moratorium Act; H.R. 2021, the Jobs and Energy Permitting Act, and that's by Mr. Gardner from Colorado; H.R. 1837, the San Joaquin Valley Water Reliability Act by Mr. Nunes of California; H.R. 872, Reducing Regulatory Burdens Act by Mr. Gibbs; H.R. 1633, the Farm Dust Prevention Act by Ms. Noem; and, finally, H.R. 910, the Energy Tax Prevention Act by Mr. Upton.
Now, just talking among friends, I would feel that the Secretary of the Interior exposes a little bit of thin skin. These are credible debates that we're having in America right now, whether we should use foreign oil or oil produced in this country, whether we should export our jobs overseas to produce energy or whether we should get them here.
I read where Mr. Salazar says that the fact is most of the Outer Continental Shelf resources are open for business, he says. Well, then, give us the nod, and we'll simply pass those first three bills: Putting the Gulf Back to Work Act; Restarting American Offshore Leasing Now; and Reversing President Obama's Offshore Moratorium. If it's already the case, then just humor us, nod your head, and nothing will be changed since it's already open for business, and if the President would tell the Senate to go ahead and pass just those three bills, we could send them up to the President, and we could have plenty of jobs starting out and plenty of American production.
Again, I would look back at the price of natural gas. When the administration says that you can't drill and come up with lower prices, the price of natural gas a couple of years ago was in the $12 range. Today, the price is about $2.50. Now what caused the price to go from 12 to 2? When the price is going up, the President says, I need $52 million to control the speculators that are driving the price up. But when the price goes down, somehow he's not saying we need to give you $52 million back because now those speculators are driving the price down.
This view of energy in the White House, originating with the Secretary of the Interior, somehow doesn't get the fact that the reason the price of natural gas has fallen from 12 to 2--and that's a very steep decline--is because we have drilled our way into lower prices. We've increased the supply enough through more jobs and more production that world demand is kind of swamped with the supply. It's, again, an economic equation of supply and demand.
I think that's the greater impact in the price of gasoline today. The supply and demand of oil and the supply and demand of natural gas controls that. We have drilled our way to success in natural gas because companies went everywhere drilling on private lands.
But now, then, the administration is saying we need to curtail all that production here because it's not going to lower the price; we need to the control the speculators. These are simply inconsistencies that are punishing the American public. They're punishing the American public and especially the poor in the American public by higher gasoline prices and by higher electricity costs. It's making it to where families just can't get by, to where they can't make the payments for the month. And poor families everywhere are having to make choices to buy energy or to live in cold, live without air conditioning, and to not be able to drive and see their grandkids.
What kind of choices are those? Those are not the choices that I think most Americans want. I think most Americans like our lifestyle. Our lifestyle is based on two dominant things--the cost of food and the cost of energy. And when we drive both of those costs up through overregulation and through government limitations, then we're doing a disservice to the American public.
Every single person in America wants to see our land protected, they want to see the workers protected, they want to see soil, water, and air protected; but they also are desperate to see jobs created. It's within the power of this body, it's within the power of the Senate, and it's within the power of the President to create those jobs, to create the answers for an America that is tired, for an America that is scared, and for an America that is worried about its future and the future for her children.
It's within our power in this town to reverse those things, to stop the war on the West, to start making sense in public policy, to start making decisions that create solutions--real solutions for not just jobs, but for careers where people can plan their lives, they can set aside to buy a house, or to send their kids to school. That's the America that all Americans want across party lines, across racial lines. People for generations have come to this country for that promise, for that hope, and that opportunity. It starts with us in this town. It is time for us to put aside the differences.
We ask the Senate to pass the West Act; and, Mr. President, we respectfully ask for you to sign that act to bring jobs to the West and bring prosperity to the Nation.
God bless this country, and God bless each one of the taxpayers.
I yield back the balance of my time.
Announcement by the Speaker Pro Tempore