Thank you, Madam Speaker. Tonight, I and other Members of the House are going to talk about energy issues in the United States. Probably a timely thing to start with are the recent comments by one of the individuals who works for the…
Thank you, Madam Speaker.
Tonight, I and other Members of the House are going to talk about energy issues in the United States.
Probably a timely thing to start with are the recent comments by one of the individuals who works for the Environmental Protection Agency, the EPA. The more we learn about the EPA, the more we learn that they are hostile to real American energy for various reasons. Let me give you some historical perspective that makes this continuous assault on the oil and gas industry make sense to us now in 2012.
It seems that back in 2010, 2 years ago, EPA Region 6 Administrator Al Armendariz stood up on his bureaucratic pedestal of power and spelled out the true intentions that he had and the goals of the EPA. He declared that the EPA--and he declared this from his marble palace here in Washington, D.C.--that the EPA would target the oil and gas industry, calling it an ``enforcement priority'' as if, Madam Speaker, the oil and gas industry were made up of criminals.
He went on:
I was in a meeting once, and I gave an analogy to my staff
about my philosophy of enforcement, and I think it was
probably a little crude and maybe not appropriate for the
meeting, but I'll go ahead and tell you what I said.
And here is what he said, Madam Speaker:
It was kind of like how the Romans used to do--you know,
conquer villages in the Mediterranean. They'd go into a
little Turkish town somewhere. They'd find the first five
guys they saw, and they'd crucify them.
That's right--they would crucify them--as if he is advocating crucifying the oil and gas industry. What a thing to say from somebody who works for the Federal Government.
He said he would make examples out of the people in the oil and gas industry. Probably unknown to him, his speech was all caught on videotape that recently surfaced. In fact, it was on the Internet YouTube last night; but today, mysteriously, it seems to have disappeared and is no longer on YouTube. That was in 2010.
These comments help us to understand the EPA's belligerent attitude against energy--American energy--against the oil and gas industry. What came after was one of the most aggressive assaults on the oil and gas industry we've ever seen. As a Wall Street Journal editorial once said, the EPA is at war with Texas. I think the EPA probably should change their name to the War Department because they are at war with America's energy. They certainly aren't concerned as much about the environment as they are about putting American energy out of business.
The oil and gas industry supports 9.2 million jobs in the United States. I wonder how many of those workers Mr. Armendariz wants to crucify all in the name of his political agenda.
Madam Speaker, we need a fair EPA, one that brings a balanced approach to the environment and to our energy industry. An attack on the energy industry is an attack, really, on the American people and American jobs. Mr. Armendariz seems to be at war with America. He does not want to really
help the oil and gas industry become environmentally safe. It seems to me he wants to kill it, and the effort will kill American jobs, kill our energy, and kill our national security.
The video also shows he is not concerned about real science, not about true environmental science or, really, the facts. He just hates the oil and gas industry. So, Madam Speaker, he needs to go. He needs to be replaced with someone who cares more about the environment than personal crusades against industry.
Madam Speaker, I would like to place in the Record the Forbes article that was published today regarding the EPA official that I just mentioned.
[From Forbes, Apr. 26, 2012]
EPA Official Not Only Touted `Crucifying' Oil Companies, He Tried It
Confirming what many in the industry long suspected, a
video surfaced Wednesday in which Al Armendariz, an official
at the Environmental Protection Agency, promotes the idea of
crucifying oil companies. Armendariz heads up the EPA's
region 6 office, which is based in Dallas and responsible for
oversight of Texas and surrounding states. The former
professor at Southern Methodist University was appointed by
President Obama in November 2009.
In a talk to colleagues about methods of EPA enforcement,
Armendariz can be seen saying, ``The Romans used to conquer
little villages in the Mediterranean. They'd go into a little
Turkish town somewhere, they'd find the first five guys they
saw and they would crucify them. And then you know that town
was really easy to manage for the next few years.''
Range was among the first to discover the potential of the
Marcellus Shale gas field of Pennsylvania--the biggest gas
field in America and one of the biggest in the world.
Armendariz's office declared in an emergency order that
Range's drilling activity had contaminated groundwater in
Parker County, Texas. Armendariz's office insisted that
Range's hydraulic fracking activity had caused the pollution
and ordered Range to remediate the water. The EPA's case
against Range was catnip for the environmental fracktivists
who insist with religious zealotry that fracking is evil.
Range insisted from the beginning that there was no substance
to the allegations.
The Armendariz video (which appears to have been taken off
YouTube late last night) was shot around the same time he was
preparing the action against Range. Here's the highlights of
what he said.
The Romans used to conquer little villages in the
Mediterranean. They'd go into a little Turkish town
somewhere, they'd find the first five guys they saw and they
would crucify them. And then you know that town was really
easy to manage for the next few years.
And so you make examples out of people who are in this case
not compliant with the law. Find people who are not compliant
with the law, and you hit them as hard as you can and you
make examples out of them, and there is a deterrent effect
there. And, companies that are smart see that, they don't
want to play that game, and they decide at that point that
it's time to clean up.
And, that won't happen unless you have somebody out there
making examples of people. So you go out, you look at an
industry, you find people violating the law, you go
aggressively after them. And we do have some pretty effective
enforcement tools. Compliance can get very high, very, very
quickly.
That's what these companies respond to is both their public
image but also financial pressure. So you put some financial
pressure on a company, you get other people in that industry
to clean up very quickly.
The former professor at Southern Methodist University is a
diehard environmentalist, having grown up in El Paso near a
copper smelter that reportedly belched arsenic-laced clouds
into the air. (Here's a profile of him in the Dallas
Observer.) Texas Monthly called him one of the 25 most
powerful Texans, while the Houston Chronicle said he's ``the
most feared environmentalist in the state.''
Never mind that he couldn't prove jack against Range. For a
year and a half EPA bickered over the issue, both with Range
and with the Texas Railroad Commission, which regulates oil
and gas drilling and did its own scientific study of Range's
wells and found no evidence that they polluted anything. In
recent months a federal judge slapped the EPA, decreeing that
the agency was required to actually do some scientific
investigation of wells before penalizing the companies that
drilled them. Finally in March the EPA withdrew its emergency
order and a federal court dismissed the EPA's case.
David Porter, a commissioner on the Texas Railroad
Commission, wasn't impressed. ``Today the EPA finally made a
decision based on science and fact versus playing politics
with the Texas economy. The EPA's withdrawal of the emergency
order against Range Resources upholds the Railroad Commission
Final Order that I signed concluding that Range is not
responsible for any water contamination in Parker County. Al
Armendariz and the EPA's Region Six office are guilty of fear
mongering, gross negligence and severe mishandling of this
case. I hope to see drastic changes made in the way the
regional office conducts business in the future--starting
with the termination of Al Armendariz.''
After an outcry emerged over the video on Wednesday,
Armendariz apologized for his statements Wednesday night,
reportedly saying: ``I apologize to those I have offended and
regret my poor choice of words. It was an offensive and
inaccurate way to portray our efforts to address potential
violations of our nation's environmental laws. I am and have
always been committed to fair and vigorous enforcement of
those laws.''
He ought to resign as well. His comments in the video are
proof that facts and science don't matter to him, that he's
already made up his mind that the industry he has regulatory
power over is evil. When you lose faith in the impartiality
of regulators every action they take is tainted. He's the boy
who cried wolf.
I want to continue my comments about America's energy by talking a little bit about gasoline and gasoline prices.
I ask Members, people back in Texas, in southeast Texas where I live, how rising gasoline prices have affected them personally, and I want to give the House the benefit of some of those statements made by American people about the high cost of gasoline and maybe some things that we can do about the high cost of gasoline.
Here's what they've said, and I'll take them one at a time.
One individual from southeast Texas says:
I spend more money on gasoline than I do on groceries.
Another:
Living in Texas requires driving greater distances to get
anything. We have no choice but to purchase gas, and it
definitely cuts into our food budget.
You see, Madam Speaker, west of the Mississippi there are vast places, as the Speaker knows, where people roam and live in the rural areas, and it takes them a long time to get from point A to point B, especially when they're going to work sometimes, whether they work on the ranch or whether they work in small towns in America.
So, because of that greater distance, a lot of Americans don't realize that the only mode of transportation for some Americans is to drive a vehicle. That's how they get to work. They don't drive subways. They don't ride bicycles. They don't have the opportunity to walk to work because they live in the vastness of the West.
I'll continue:
Seventy percent of all business requires people to have
discretionary income that's being siphoned off by higher gas,
taxes, fees, and it's only getting worse because of high
gasoline prices.
Another says:
As a retiree, high gasoline prices affects everything I do.
Travel, possible vacation plans are no longer being discussed
in our family. Anything I do is planned well so as to cut
down on how much I drive. What I buy, because it is priced so
high in the stores. The price in stores has tripled because
stores are having to pay higher fuel prices to get their
products to market.
Another one says:
I drive for a living, and it hurts.
Another Texan has written me and said:
I drive 175 miles round trip to work every day. I work for
the Corps of Engineers, and the government doesn't give me
one red cent for gasoline. It costs me $900 a month for
gasoline that I used to could use somewhere else.
Amazing number: $900. In some cases, that's how much people pay on the rent on their house or an apartment. Yet we have one American doing his job working for the people of this country spending that much money just on gasoline.
Another individual wrote me and he said:
I can't afford to commute. But by my long hours as a
businessowner, it makes it impossible to take mass transit or
a carpool. So I have no alternative since I have no carpool,
no mass transit, but I have to drive to get to work because
I'm a businessowner, and the gasoline is driving me out of
business.
Another one has said:
I drive 75 miles a day round trip for work, plus I pay $7
in tolls. Yeah, it's hurting. I love my job, but it's getting
to the point that what money I make is going straight back
into the gas tank.
Another citizen has said:
I drive a 2000 Ford F 150 as my work vehicle. It's draining
my wallet, but I need a full-size truck for my job.
Once again, in the West, a lot of folks drive pickup trucks. They don't only just drive them to work. That is their work vehicle. They use that in their job. It is their office. They don't have the luxury as some do to work in tall
skyscrapers and an office, as we consider an office. Their truck is their vehicle, and the F 150 is the standard-operating vehicle, at least in Texas and other parts of the country. By the way, it's the number one selling vehicle in the United States.
But Americans need to understand, and the government needs to understand, that's what Americans drive. That is their work vehicle in many cases. High gasoline prices affect their quality of life, and maybe we, as a body, ought to do something about gasoline that is now $4 a gallon.
Another citizen told me:
Last month I spent $600 on gas for my truck versus just
$300 a few years ago. Customers don't understand that the
materials are going up due to the rising costs and the
suppliers are raising the price to recoup the loss due to
fuel prices skyrocketing.
What we pay at the grocery store or at any store where we do business, for a product, part of the cost of that product is getting it to market so Americans can buy it. It's costing more to get goods and services to market because of gasoline prices, and, of course, gasoline prices affect the price of goods, and therefore that is passed on to the consumer, to people in America who live here.
Another one says:
Where do I begin? I hated it, but I had to go from a
4Runner to a Corolla to handle my commute to work every day.
Another one said:
Since 2010, my food bill has gone from $95 a week for a
full cart to $130 per week for half a cart of groceries. We
are making more but keeping less. High gasoline prices affect
my quality of life.
Another one says:
I have spent less on food so I could fill up three times a
week at approximately $75 to $80 a tank.
Another citizen wrote me his concerns:
I had to find another job closer to home because it's
getting ridiculous, the cost of gasoline.
An individual who uses his truck in his business said this:
I drive a hot-shot delivery truck, and I have to pay my own
fuel. We do get a fuel surcharge, but it does not even come
close to paying for the fuel. I spend $200 to $250 a week on
fuel over what the surcharge pays me, and it's killing me.
That's what Americans are saying about gasoline prices. These are people who work every day, support their families. Yet gasoline affects them in personal ways.
Another individual wrote me about his religion is being affected, his religious commitment is being affected by the cost of gasoline. Here's what he says:
Because the church my family and I attend is 30 minutes
away, we've chosen to attend Wednesday night church services
closer to home. Also, we've had to give up two church service
meetings during the week. It's upsetting for my fellow
members to ask me on Sundays if I've left the church. It's
also harder to maintain those close ties not seeing fellow
members but once a week, and it's all due to high gasoline
prices.
Another southeast Texan writes this comment to me:
We certainly have less ``disposable income,'' as the phrase
goes, and that means less money to spend in various
businesses in our city because of the high cost it costs my
family to buy gasoline.
Another one says this:
I've cut out everything extra, dine out less, fewer trips,
stay at home for entertainment, prices of food have tripled,
and I stretch leftovers as far as possible because of gas
prices.
Another citizen and neighbor says:
I only drive where I have to. I shop at Kroger to get extra
cents off of gas.
The Kroger grocery store gives people the deduction if they buy gasoline from Kroger, and they have the little Kroger card:
We just stay at home more than ever.
And a fisherman says this:
I am a commercial fisherman. Gas prices hurt at the pump
and it has in turn driven up the prices for supplies. It's
even driven up the price and cost of bait.
Another one lastly makes this comment:
It's just hard to make it these days.
So gasoline prices, which we're not talking a whole lot about now, some Americans have just accepted it as the new normal. I refuse to do that. I refuse to accept high gasoline prices.
I'm old enough to remember when gasoline cost--I don't want to shock the Speaker, because you're a whole lot younger than I am. I remember when I could fill up my Chevy II Super Sport in the early seventies for 26 cents a gallon. I know that shocks you, but gasoline prices have gone up. Of course in my generation, as Mr. Burton from Indiana knows, when gasoline hit 30 cents a gallon, we all were shocked about it. Now we're paying $4 a gallon.
We don't have to accept that. The reason we don't have to accept it is because sitting over here are America's natural resources, our God- given natural resources, just waiting to be developed. But as I mentioned earlier, we've got these bureaucrats down the street in their marble palaces called the EPA, and they regulate more than just light bulbs. They're regulating the oil and gas industry out of business, and I think it's a personal vendetta that they have for some reason.
There are things we should do, things we can do, and it's important that we discuss those. And we'll continue to discuss those tonight with my colleagues.
I do want to yield to my friend and colleague, Mr. Burton from Indiana, for as much time as he wishes to consume.
Thank you, Mr. Burton, for your comments. I appreciate the gentleman from Indiana.
Several comments about what you said are important. The administration, the government, says drilling is up in the United States. That is true. But drilling on Federal lands is not up.
The drilling is taking place on State-owned property or private property, but other lands other than Federal lands. If it wasn't for that, drilling would be down in the United States. If we go back to the Gulf of Mexico, the same situation we have in the Gulf of Mexico has been ever since the BP incident.
Permitting is taking too long. It takes a record amount of days, sometimes months, to issue a permit in the deep water and in the shallow water. The shallow water guys operate with a very small amount of capital. They can't stay and wait around for the government to make a decision on a permit or not, so they aren't able to drill. In the deep water, those deepwater wells, those rigs, they cost $100,000 a day whether they're operating or they're sitting there, and that's why some of them have left the Gulf of Mexico to never return. They've gone down to South America; they've gone to off the coast of Africa, to drill where countries are friendlier to the drilling safely off of their coast.
If the gentleman will yield, we're not only sending money down there to develop their oil industry, when they develop it, we're going to buy their oil back. So we're paying them twice.
Which doesn't make a whole lot of sense to me.
Now, I don't know and I don't really suspect that drilling would be the only answer for raising or lowering the gasoline prices, but it's one factor because of supply and demand. It's not the only factor, but it's one of those. It just seems to me that the United States is the only major power in the world that has an energy policy that is: We're not going to drill in the United States for all these reasons, but we want you to drill in your country your natural resources and we'll buy them from you. It seems a little bit arrogant on our part as a Nation.
If the gentleman will yield, as you mentioned about ANWR in Alaska, years ago we came up with this idea of a pipeline from Alaska bringing crude oil into the United States, and the same people that opposed that pipeline still exist today and are opposing the Keystone Pipeline. It took years for the vetting of the environmental lobby to finally be put to rest. They were concerned about the caribou. Of course, I think the caribou are doing quite well now. Finally, Congress decided not to wait on that administration and go ahead and make an approval. But Congress went ahead and approved the Alaska pipeline on its own, which became law in spite of the administration. It didn't wait for its approval. And now we know the rest of the story--it's a success 25 years later. And that's what Congress needs to do with the Keystone Pipeline.
No one has ever accused Canada of being environmentally insensitive. Their regulations are as tough as the EPA's--or even stronger. But yet they've developed a way that they can bring crude oil through a pipeline down to southeast Texas--Port Arthur, my district--in a safe, environmental way, and also one of the newest and finest pipelines. But the administration says, Not so fast. And it's unfortunate because the jobs will stay in America. Create that pipeline. Canada is not a Middle Eastern dictatorship. They're kind of a normal country.
We should approve that as soon as possible. I understand the concern in Nebraska. I'm glad to see the folks in Nebraska are working with TransCanada to reroute that 60 miles so there are no environmental issues and get this pipeline approved and start shipping that crude oil down to southeast Texas so we can use it in the United States.
It would seem to me that the United States should maybe think about this type of energy policy: we should drill safely in the United States for oil and natural gas. And I say ``safely'' because that is important. But we should also partner with the countries next to us-- the Canadians to the north, who have natural resources, and the Mexicans to the south, who have an abundance of natural resources--and the three of us work together on a North American OPEC-type philosophy and be energy independent. Not just energy independent, but it will help out our national security.
And if we do that, if we work with Canada, Mexico, drill in the United States, where it's safe, we can make the Middle East irrelevant. We can make that little fellow from the desert, Ahmadinejad, and his threats about closing the Strait of Hormuz, we can make him irrelevant. We don't care what he does. We don't need to continue to send our money to other nations over there that don't like us. So maybe that's something we need to do in the United States.
Lastly, and then I'll yield to the gentleman, because of American technology, because of those folks that know how to drill safely for oil and natural gas, the United States now suddenly is becoming an abundant Nation with natural gas. And we could, if we developed it the way that we can, the United States--primarily Texas, but other States-- we could become the Saudi Arabia of natural gas. We could export natural gas, we have so much of it, and bring that money into the United States, rather than constantly sending money throughout the world, all because we don't take care of what we have and use what we have.
I thank the gentleman for his participation.
Madam Speaker, it seems to me that the United States can make some decisions and solve some of our own problems. We can start with finding people in the EPA that do not have their own personal vendetta against the oil and gas industry, replace those individuals like Armendariz and get some fair and balanced bureaucrats to make sure we have a clean environment to work with our energy companies rather than against them, and stop the war against the energy companies in the U.S.
We can work and bring down the price of energy in the United States. One way, not the only way, is to make sure that we have a supply. A greater supply, as we all know, of anything, does help reduce the cost of energy, so that people in southeast Texas who have a hard time getting to work and who are paying more for products that they have to buy, just like Americans throughout our Nation are having tough times because of high gasoline prices, we owe it to them to do that, to take care of ourselves and to work with Canada and to work with Mexico so that the three countries can be a strong ally, not just politically, but that we can be strong allies with our energy economy.
With that, I'll yield back to the Chair.
And that's just the way it is.