Bankruptcy Abuse Prevention And Consumer Protection Act Of 2005
Mr. President, is it proper to speak on a matter not concerning bankruptcy at this time without consent? Mr. President, I ask unanimous consent to be permitted to speak for up to 10 minutes on a matter not concerning the bankruptcy bill.…
Mr. President, is it proper to speak on a matter not concerning bankruptcy at this time without consent?
Mr. President, I ask unanimous consent to be permitted to speak for up to 10 minutes on a matter not concerning the bankruptcy bill.
Mr. President, I hope all Members of Congress saw the news yesterday, that oil prices reached $55 a barrel. Now, some of us reacted with shock and amazement, but others knew the reality that this day would come.
We have witnessed the impact of these high energy prices every time we fill up our gas tanks and pay our heating or electric bills.
These high prices are unsustainable, jeopardizing jobs and threatening the long-term health of our economy. The impact of high energy prices can be seen at all levels of our economy. High energy prices have produced job losses, trade deficits, and constraints on consumer spending and economic growth. Demand for energy in the United States is outstripping supply, and Americans are feeling the impact of Congress's failure to act to solve the problem. Our people rely on our ability to stabilize energy prices and provide them with the energy resources all of us need.
The good news is that this worsening crisis is avoidable. The United States has the natural resources to increase our energy supply. But inconsistent Government policies discourage the exploration, development, and use of our own energy resources. Almost 30 percent of all the lands in this country are owned by the Federal Government. That is 657 million acres--almost four times the size of Texas. Under those lands lies 90 percent of the predicted undiscovered oil and 40 percent of our undiscovered natural gas. Those public resources are needed to meet our energy needs and secure our future.
Since 1983, access to our Federal lands has declined by 60 percent. Over half of the lands that are designated currently as multiple use-- in other words, ones that oil and gas exploration could take place on-- are subject to highly restrictive land classifications or lease stipulations which effectively restrict energy exploration and development.
The effect of these policies is clear. In 1981, 91,533 oil and gas wells were drilled in the United States. In 2000, that number declined to 29,284, almost down to 25 percent of what we did some 20 years ago. As a result, crude oil production in the United States is at a 50-year low, and permitting for oil and gas projects on Federal lands that once took 18 months--and that was considered a long time then--can now take up to 10 years. In some instances, it takes 10 years to clear a permit to start exploring for oil on Federal lands. Those delays force companies to pursue projects overseas rather than develop U.S. resources.
Some people have commented upon the fact that the U.S. oil industry is no longer seeking to support the concept of drilling on Alaska's Arctic plain. They have opportunities all over the world where they can proceed much more rapidly than in this country, and there is no question that they need to find oil to meet our needs. What industry is going to put up the money for 10 years to explore for and develop energy here at home when it can go abroad and do that in less than 1 year?
In a hearing before the House Subcommittee on Energy and Mineral Resources, Stephen Entin, a former staff economist for the Joint Economic Committee and currently president of the Institute for Research On the Economics of Taxation, argued that our current policies actually support OPEC, the Organization of the Petroleum Exporting Countries, and enhance its power. By locking up our own lands we have basically manipulated prices because we have restricted competition from American companies, and OPEC reaps the benefits from an inequitable playing field. As a matter of fact, we encourage them to raise prices because our demand constantly increases and our domestic supply constantly decreases. Jobs and energy security have been outsourced, as we seek our energy security in places where there are unfriendly and unstable regimes. I have had personal talks with some members of the oil industry. They know that those are unstable regimes, but they have no alternative.
For every $1 billion we spend to develop petroleum resources domestically we would create 12,500 jobs. That would mean that last year we lost over 1.3 million jobs by importing oil instead of producing it. People wonder why our jobs are going abroad. When we withdraw lands from oil and gas exploration, that is not free. Many people in this country think it is an easy decision and it doesn't cost anything. It is a very expensive policy. We are paying a huge price now because we have locked up our lands and made them inaccessible, when they purportedly are open, by restrictive policies, restrictive stipulations that take so long to comply with that no industry is going to put up the money and wait so long for the opportunity to see if there is oil and gas in those lands.
The American taxpayer picks up the tab, and the American consumer is severely punished by this policy. Consumers are paying more for food, goods, and energy bills. According to Daniel Yergin, an economist from Cambridge Energy Associates, high energy and gasoline prices essentially act as a consumer tax, leaving Americans with less disposable income for travel, home buying, restaurants, and retail establishments, all of what we call our quality of life.
Only yesterday, I received this estimate. It is estimated now that for every one-cent increase for gasoline at the pump, there is $1 billion lost in consumer spending. Just look at the price of gasoline now. The price of gasoline is at an alltime high, and it will not come down. It is going to continue to go up.
In China, 5 years ago only 5 percent of their people were using energy. Now 15 percent are using it. Even at that low rate of 15 percent of their people using energy, talking about oil and gas energy, they have now passed Japan in consumption annually of oil and gas. They are second only to the United States, and only 15 percent of their people are using oil and gas so far. People blame a lot of things for these high prices, but the fact is the world is starting to use oil and gas. We are competing for the world's oil production and ignoring completely our capability to produce right here at home.
Unless Congress acts to ensure greater domestic production of our oil and gas resources, our energy security is jeopardized. I am talking about security. We had one embargo since I have been in the Senate in the 1970s, when we were totally embargoed by OPEC. They would not sell us oil. At that time about 33 percent of our oil was coming in from OPEC countries. Today it is 60 percent. An embargo today would destroy our economy.
There are many people who advocate quick fixes to use alternative sources. I believe there must eventually be alternative sources to oil and gas in our economy, but just relying on them and saying we are going to do it and never bringing that about has led us to the point where we no longer have the capability to produce the oil and gas to meet our needs in the event of national security.
We believe that it is time now that we should review these policies, and one of the key policies, of course, is an area that comes from the development of an area in my State. In 1980, we passed the Alaska National Interest Conservation Lands Act, an act that withdrew over 100 million acres of Alaska's lands for national purposes.
One provision in that bill guaranteed the right to explore the Arctic plain, a million and a half acres, for oil and gas, probably even then known as the area most probable to produce substantial quantities of oil and gas. It is estimated to contain 10.4 billion barrels of oil. Just as a comparison, when we first drilled at Prudhoe Bay, the estimate was it might contain 1 billion barrels of oil. We have already produced 16 billion barrels of oil from Prudhoe Bay. In other words, this area now considered to be capable of producing 10.4 billion barrels of oil is probably the last most significant oil and gas area in the country, and we have worked, now since 1981, to try to fulfill the promise made to us in the 1980 bill that that area could be explored.
It is high time that we take action to reduce our dependence on foreign oil. As I said, we rely upon foreign sources for 60 percent of our energy needs. The area of the Arctic plain, 1.5 million acres guaranteed to be available for oil and gas exploration, is there. Allowing exploration and development of this area that is known as ANWR, although it is not part of the refuge until oil and gas development is over, would improve our U.S. balance of trade, reduce the amount of money we spend abroad, and improve our national security by having available the capability to produce that amount of oil.
It is estimated that by 2025, the United States will spend approximately $200 billion on foreign oil and petroleum products. By opening this area, and when it produces, we could save a considerable portion of that by producing our own oil and gas. It means we could create tens of thousands of jobs and contribute greatly to the overall economy.
There is no question that we are now in an energy crisis. Anytime we see $55-dollar-a-barrel oil, that is a crisis. I cannot believe that Congress wants to wait until the price goes up to somewhere around $80. I believe it is going that high unless we start developing our domestic resources and look to alternative supplies of energy right here at home.
I yield the floor.