Oil Drilling Needed In Gulf Of Mexico
I thank the gentleman for yielding. We all represent an area of the State of Texas that is dramatically impacted by the oil and gas industry. And having a district on the Gulf Coast representing about 20 percent of the Nation's oil…
I thank the gentleman for yielding. We all represent an area of the State of Texas that is dramatically impacted by the oil and gas industry. And having a district on the Gulf Coast representing about 20 percent of the Nation's oil refineries, this is an especially serious incident that has occurred offshore, this BP Deepwater Horizon disaster. No question about it, this problem, this accident has to be solved. I understand within the last hour that the cap that has now been placed on the well by BP is apparently working. Hopefully, it will be working long enough for them to finish drilling the other two wells to solve this problem.
And we always must be mindful of the people that were killed in this tragedy, plus the tremendous damage it has done to certain parts of our environment. But we cannot allow this accident to be an overreaction. And I think the Federal Government has overreacted in this situation.
The deep water in the Gulf of Mexico provides 17.3 percent of the Nation's domestic crude oil, and the Federal Government now has said, No more deepwater drilling until 6 months or when we get back with you. Now, no industry, whether it's a doughnut shop or the oil and gas industry or anybody else, can be shut down for 6 months by the Federal Government and expect to survive.
And these deepwater rigs are not cheap endeavors. They cost $500,000 a day to drill in the deep water. They're not going to wait 6 months for the Federal Government to make its decision whether they can continue to drill or not. That's why some of them have already left the deep water and gone to friendlier waters where those governments aren't quite as oppressive and prevent deepwater drilling.
Those people who work offshore in the deep water now are unemployed thanks to the Federal Government. It's an overreaction. Now, all of a sudden, 17.3 percent of the Nation's crude oil is gone out of the deep water. To make up for just what is now going to be eliminated in the deep water, it will take 300 tankers a year coming in from those countries in the Middle East to supply or resupply just the difference in the crude oil that we will not obtain from the deep water. And of course those tankers, some of them have had problems of containing that crude oil that is coming all the way from the Middle East. Once again, now we are paying and sending American money overseas, sending jobs somewhere off the coast of Brazil, Africa, and Egypt, and yet it is, in my opinion, an overreaction.
I will give you an example. In 2005, in Texas City, Texas, very near our districts, we had a BP explosion at a refinery. People were killed. In fact, more people were killed then and injured than in this explosion offshore, but we didn't close all of the refineries in the United States. We closed BP's refinery until we found out what the problem was and made sure that they were held accountable for what they did. But we didn't overreact.
I got a letter from a Cajun fellow, a real mad Cajun, from Houma, Louisiana. The Cajun community, as you know, Mr. Brady, they border our State. We have a lot of Cajuns in our southeast Texas. They come from Louisiana and ours go over there. Anyway, a lot of them work in the oil and gas industry. I want to read a portion of his letter. He wrote it to the President, but I got a copy of it as well. He runs an offshore drilling related business, and here's what he says.
``I am terribly troubled that after striving to find jobs for Americans, you make a hasty decision to stop drilling for 6 months. Did you stop coal mining after all the incidents they have been having? No. Did you stop the airlines after all the crashes and accidents they have been having? No. Did you shut down the mortgage companies, the banks, and the auto industry after they stole money from those same Americans that invested in them? No. You bailed them out. Now you want to shut down the oil industry for 6 months, which will hurt tens of thousands of workers! I only hope you understand the trickle-down effect this will have on many industries,'' such as for Timmy Bergeron.
I won't read the rest of the letter. It gets a little more colorful. But it's important that we understand these are real people that are losing their jobs because of this decision.
A Federal judge has said that the Federal Government's decision to stop or to issue a moratorium to stop deepwater drilling--and I quote the Federal judge in issuing an injunction, saying this injunction was wrong. The Federal judge said that the government's decision to stop deepwater drilling was ``arbitrary,'' it was ``capricious,'' it was ``unfounded,'' and it was ``punitive''--pretty strong words--because the government couldn't show evidence that stopping the deepwater drilling was necessary because of the accident with BP.
So the Federal Government is still suing the Americans, went and appealed this decision. A three-judge panel ruled that that decision would be upheld. The final decision will be in August. But the Federal Government has had its way because continuing to fight Americans in the courtrooms, prolonging the ultimate decision that will be made by the appellate courts on whether the injunction should be granted to stop the Federal Government's moratorium or not, is such a delay that more of those deepwater rigs will leave.
The people are still unemployed. They need jobs. They want to work offshore. And most of the people in this country, 73 percent of the Nation's population, think we should still continue to drill in the deep water, even in spite of this horrible accident, solve this problem, and allow Americans to continue to work.
With that, I yield back to my friend from Texas (Mr. Brady).
I thank the gentleman for yielding. As you know, Mr. Brady, Port Arthur, especially Port Arthur, Texas, is a refinery town; but it has high unemployment. The whole area has high unemployment for a lot of reasons. One reason, of course, is we've been hit by numerous hurricanes. Just since I've been in office, we've had Katrina, Rita, Hubert, Gustav and Ike all come through my congressional district and your congressional district. Because of that, it's affected the economy. And now these workers are trying to get back to work. Many of them work offshore, and then they work onshore in oil- related industries.
But the effect of the shutdown in the deep water causes economic hardship, not just on the workers on those platforms, but for the people on shore that supply parts and maintenance and other industries, other commodities to those people who work offshore. And so we don't know yet how many thousands or hundreds of thousands of jobs would be lost because of this.
But one thing that we also need to understand is the loss of energy, the lack of having crude oil that we were producing in the deep water; 17 percent of the Nation's domestic crude oil production comes from deep water. That is now going to be gone, and we'll have to make that up some other way. So we should expect gasoline prices to rise, probably in 2 years, maybe less because of that.
And I think it's imperative that we understand that the folks that are affected want to continue to work. They want to continue to work offshore. They want to continue to work safely. And they don't want the Federal Government putting them out of work. And that's exactly what happened. The Federal Government has shut them down, has sent their jobs overseas.
Will the gentleman yield?
That's exactly what will occur is not only energy costs, but we also must remember that this deepwater drilling and the crude oil that comes from the deep water produces millions of other products besides just fuel. All of the plastics, many of our technology comes
from some base of crude oil. And all of that is affected, and the costs of all those items that are produced in our refineries and petrochemical plants will be affected because of this arbitrary, capricious, and punitive decision to just stop deepwater drilling.
I would hope the administration would re-evaluate their position, quit suing Americans, get out of the courtroom and get down on the Gulf of Mexico and fix this problem and let people go back to work.
I yield back.