Madam Speaker, I appreciate the opportunity. I want to immediately yield to my friend. There were a lot of facts thrown out here, and the folks who are paying attention here in the Chamber may want to hear the response. I yield to my…
Madam Speaker, I appreciate the opportunity. I want to immediately yield to my friend. There were a lot of facts thrown out here, and the folks who are paying attention here in the Chamber may want to hear the response.
I yield to my friend from Pennsylvania.
And one of the issues that was brought up today by the President that we want to discuss--and I very much appreciate you making the presentation as to the other side of the debate that our friends made over the last hour. But a couple of the points that were made on the other side is that, well, if we go offshore, you go into the Outer Continental Shelf region, it's deep water, it's going to cost $2 billion just to maybe get into the well. Well, when you look into the profits from 2007 for the oil companies, $123 billion in profits last year. So the reason they give that they have to increase the price is because it is expensive to get into some of this deep water; no one is disputing that fact.
Sure.
Much of this money has already been spent in the surveying and the geological work. So now you have, last year, $123 billion in profits. That's what you get the money for because you say it's expensive to get in there. So you're making all the profits and not necessarily going in to get the oil.
And then another comment earlier was made, well, it may take 7 years. Well, if you go to ANWR, you're not going to get a drop out for 10 years. And in 20 years--and I love how this ANWR has just become the silver bullet. If you go into ANWR today, or
even if you did go into ANWR in 1995, Madam Speaker, that will only save you, after 20 years of, when ANWR gets to peak production, it will save 1.8 cents per gallon of gas, period, at peak production.
ANWR is not a silver bullet. And if ANWR were the silver bullet, the gentleman from Pennsylvania and I would be standing on top of this Capitol waving the ANWR flag saying, this is all we need to do in America is to go to ANWR and pull out this oil that's there. And so I think it's misleading, Madam Speaker, for the President to come before the American people and say that this ANWR is a major component of us reducing our dependency on foreign oil.
And we're not getting this information, unlike has been proposed in some places that this is all coming from the Sierra Club, that all this information is coming from the League of Conservation Voters or some left-wing, liberal political group that doesn't care about energy and wants us all to move to a commune and then we'll all be fine. This is coming from the Department of Energy. These ANWR statistics are coming from the Department of Energy. And the Department of Energy is the executive branch, which is run by George W. Bush. These are the President's own people telling us from the Energy Information Administration of what exactly the numbers are. We are not making this up.
So on one side he comes out and says, ``We need to drill in ANWR. That is a major component of our energy policy.'' And his own energy people are saying, ``In 20 years it will save you 2 cents a gallon.'' Now many of our colleagues here have said, ``We are Americans. This is America.'' Well, the America that I know doesn't say, ``We are going to really do it and save 2 cents a gallon in gas 20 years from now.'' That is not America. That is not America. America is saying, ``We are going to be energy independent.''
The problem with our friends and the disagreement that we have with the President and with our friends in the Republican Party is the basic idea that we can drill our way out of this problem. Because we can't. We have 1.6 percent of the known oil reserves in the world in the United States. And we consume 25 percent of daily oil consumption, my friend, and that means that no matter how much we drill, if we just keep drilling and drilling and drilling, we will still have to import oil. We will still be dependent on the Middle East. We will still be caught up in these political games that we are in right now in the Middle East. And we will still be in this tenuous web of dictatorships and who's got the oil and what are the supply lines and how do we keep it safe and how do we get to the market. We will still be involved in all of that.
But what the Democrats are trying to do is to take this money and invest it into alternative energy research and development. This should have been done years ago. And some of our friends on the other side and the President comes out today, it was like the President hasn't been around for the last 7 years. You control the House. You control the Senate. You control the White House. Republicans were controlling the whole capital in Washington, D.C. when I first got down here in 2002. The President got here 2 years before. Why aren't we drilling in ANWR? They said Clinton vetoed it in 1995. Why didn't the President pass it through? Why didn't the President move us forward with the Republican leadership in the House and the Senate with Trent Lott and Tom DeLay and all the other leaders that were down here?
That is failed leadership. We are here to clean up the mess. And now look where we are, at over $4 per gallon for gas.
And if the President wanted to have short-term impact on the cost, we have got to deal with the speculation in the commodities market. Period. Now economists are saying anywhere from 10 percent to 100 percent of the increase is from this speculation, so put that all together, and it is 40 or 50 percent of the increase. But if we take care of the speculation and the President would show Presidential leadership and come to Congress and say let's do something with the commodity prices and the futures speculation and Congress passed something on this so we can have short term, I would say, ``You know what--there's some leadership.'' Let's get that done. Let's get it through Congress. Get it through the Senate. Let's have him sign it. And let's try to reduce this cost by 40 or 50 percent. That would get us under $100 a barrel if we
could reduce the increase that has happened because of the speculation.
But he did not do that because a lot of what comes out of the executive branch today, Madam Speaker, is political. And you go back to the war, and you remember ``greeted as liberators,'' you remember that ``we're going to use the oil for reconstruction,'' you remember all the promises that were made. That is what this administration has said. And then it came to the economy: ``Well, you know, as long as we cut taxes for the top 1 percent of the people, the domestic economy is going to take off. It's going to be a stimulant. We're going to take off. It will be good for the middle class.'' That hasn't worked.
And then you look at the fiscal policy where he said, the administration said, ``Trust me.'' And we have raised the debt limit in this country. All of us. And the Republicans were leading the House, the Senate and the White House at the time, but this is America's money. They raised the debt limit five times and borrowed $3 trillion, $1 trillion of it from foreign interests including OPEC and China.
The President said, ``Trust me.'' Now he comes out today and says, ``If we only drill more in the United States, then we will solve this problem.'' But we have got to keep drilling and drilling and drilling. And you and I are here saying, ``Fine. Go ahead and drill.'' There are 68 million acres. There are 8,000 leases. There is 80 percent of the oil that we know that we have in the United States on those 68 million acres. Drill and go get it. But when you only have 1.6 percent of the world's oil, and you consume 25 percent, you can drill until the cows come home. We're not going to drill our way to energy independence. That is just not going to happen.
So as leaders in this Chamber and as leaders in the Congress, we have got to come up with a better solution. And that is what we have done. We took the $14 billion that was going for subsidies to the oil companies and moved that into alternative energy research so that we truly can be energy independent.
I yield to my friend.
Mr. Speaker, I am sorry. I don't feel bad for the oil companies. They want to go drill here and we won't let them. There is a reason. Why wouldn't we want to let them go to ANWR if it were going to be this big major solution?
Here are the facts of the matter. The green are areas of land that are open for leasing for oil offshore. Open for leasing is the green. What is closed is the red. They have all of this to go ahead and drill in. Go ahead. Drill. Drill to your heart's content. It's already open, the EPA permitting, you're ready, set, go. Go and do it.
This is not Sierra Club. This is the Minerals Management Service within the Department of the Interior. This is not us making this up. The 30 Somethings, we're big on the third-party validators.
Now here, does drilling lower gas prices? Okay. So the red here are drilling permits that have been issued from 1994. The blue are the wells that have been drilled. So you see that the permits have increased, especially in the last few years. The red are the permits. The blue are the wells that have been drilled and the wells that have not been drilled as to the permitting. So with all of this going on, the price of gas has skyrocketed, commodities issues and a lot of other things going on here. But what we are saying is, you have all of these permits to drill where the executive branch, President Bush's executive branch, is telling us that this is where the oil is, and the oil companies have found the oil there and got the permits and did the studies as you have pointed out earlier. And they have all this room here to dig, to drill, to pull the rigs up and to do everything that they have to do. And this is where you could pull out where these leases are, 4.8 million barrels of oil a day. In ANWR, it is how many barrels of oil a day?
And that would save you 2 cents.
It would be very little impact. I tell my constituents this all the time when we are chatting, if there is a politician that has one silver bullet, if we just do this, that all of these problems are going to go away, be very, very, very skeptical.
We grow up learning, if it sounds too good to be true, it probably is. The oil companies are spending a lot of money, I'm sure, through Internet traffic, through advertising and TV about how they're going green. So ExxonMobil, Mr. Speaker, has spent--the industry totally--$52 million on advertising about how they're going green and everything else. ExxonMobil, of their $40 billion in profits, has spent $10 million on alternative energy research and development. That is not the direction. So, when we say that it is important for us to shoot the Moon like we did in the 1960s and get into the alternative energy, that's why. That's what we have to do.
I yield to my friend.
So that's what we're saying, and that's what the whole new direction of Congress has been about, which is, when you're making these decisions, you have to base your public policy decisions on the facts. When the facts say this, that no matter how much you're drilling and you're not keeping up for whatever reason and you only have not even 2 percent of the total oil in the world that is in the United States, 1.6 percent, and you're consuming 25 percent, any businessperson who is sitting in our seat here, looking at these facts, would say we've got a problem. We can't keep drilling.
You know, maybe we need to drill now and do what we can in the short term, but this is no long-term solution. This is clearly a problem that we have for our country. So, nuclear, biodiesel, wind, coal to liquid, whatever the case may be, those are the directions in which we need to move.
Now, a lot of folks are talking about refining capacity, so I think it's important to realize that our refineries are currently running at 88 percent. We are not at full capacity with our refineries. Everyone keeps saying, ``Build more refineries. Build more refineries.'' In 2005, there was a 50 percent tax credit for any company that wanted to build a new refinery, and they have not. All of the big dogs over the last 20 or 30 years have said we have no interest in building a new refinery. They're making $130 billion in profits a year. Now, all of a sudden, we feel bad for the oil companies?
The President basically came out today and said I know we're running down a dead end, but let's run faster. Let's put the juices on. Put on your new tennis shoes. You know, put on two pairs of socks so you don't get any blisters, and keep running down the wrong road until you just smack your head right into the wall.
What we're saying is we know how that movie ends. We know. We don't have enough oil to drill our way out of this thing. That's how that ends.
So let's, please, go in another direction, Mr. Speaker.
Well, we have other illustrative charts here. This is the Outer Continental Shelf: The acres that have been leased and the acres producing. So this is in the Outer Continental Shelf already, 44 million acres, and only 10.5 million acres are being utilized. That's in the Outer Continental Shelf. It just helps. You read it, but it helps. These are statistics that are coming from the Energy Department. These aren't things that we're making up.
I'm sure the oil companies spent a good deal of money to identify the area. They hired a lot of geologists whom, I'm sure, they have working for them. They spent a lot of money and used a lot of technology to identify this.
But this is the area that is underdeveloped, and the President comes out and says ignore all of this, and go to ANWR or do this, which is not even being done now, and then go to ANWR. There are 4.8 million barrels of oil that would come out of this per day at maximum production and, in ANWR, 800,000. This is the Outer Continental Shelf and this is onshore. It's the same kind of situation: 47 million. Only 13.2 acres that are actually in production right now. Again, there is the number of permits.
It's interesting because we kind of went through this a few years back. You'd hear testimony from executives, and you'd hear about supply and demand. Then with the situation dealing with Enron, all of a sudden, it was not supply and demand. All of a sudden, it was all this manipulation that was going on.
Our job here is to oversee what is going on in the markets and figure out how we can make sure that everything is above board, that everything is legal.
Now, a few weeks ago on a Friday, the increase in the cost of a barrel of oil was more than a whole barrel of oil cost 10 years prior to. Something funny is going on here, and I think we need to move with the commodities issue. We've already done the Strategic Petroleum Reserve. We've already passed out of the House that which deals with the cartels. These are steps that we are taking, but if we don't move into the
alternative energy category, we're going to be sitting here 10 years from now, dealing with the same, exact issue that we're dealing with today.
I think it's important that we realize that this is not going to be some kind of very narrow solution to the problems that the country is in now. The point is that when President Bush came into office, there was a pretty good economic forecast, a lot of things were stable, it was time to make some key investments. That did not happen, and the situation got dramatically worse.
The middle class has continued to get squeezed, whether it was energy costs, health care costs, tuition costs, everything in the 6 years in which the President was pushing all of his agendas. I've said this more than one time on this House floor. There is no need to wonder about what the neoconservative Republican agenda would look like, because we are living in it today.
All you have to do is go to the gas pump, get your health care bill, pay your kids' college tuition, deal with the global environment, look at the foreign policy of this country, the destabilization of the Middle East, unable to deal with China. We deal with a lot of trade issues, with China, with Wheatland Tube that has a facility in my district, a facility in your district, in imports coming in from China.
It's tough for us to advocate the administration to be hard on China, to take a firm stance on China, because the administration at the same time is borrowing money from China to finance the $12 billion a month for the war in Iraq.
So the foreign policy of the United States has destabilized the region where a lot of the oil is, and that has not helped the situation. Our domestic problems continue to exist because we are living under the President's current economic policies. The debt burden that has been placed on our children and grandchildren over the next generation was put in place, the $3 trillion borrowed, this is the conservative Republican agenda currently implemented.
We are trying now to take the Congress in a new direction and to move into alternative energy so we don't have this dependency which would relieve the pressure for a lot of the foreign policy issues that we are dealing with, to use PAYGO to pay for what we are spending here in Washington D.C., to try to repair this debt and eventually pare down the debt so that we can have a firm negotiating stance with China, these all fit together. We can't continue to go down this same road. At every instance, the New Direction Congress has changed course from the current administration.
But that did not stop the President from coming before the American people today and asking the American people to continue to go down a road that is a dead end, and that's drilling.
It's amazing to me, whether we are dealing with the supplemental, or dealing with the regular order of business here in Congress, when we try to push an agenda of helping the soldiers, for example, we are trying to get the GI Bill, which would pay for 4 years of college for our soldiers who have served in Iraq and Afghanistan, for free. They have served this country. We need an economic recovery, we need brain power. These young men and young women should have 3, 4 years of college.
But the President says, we don't have the money and turns around and asks for $140 billion in the supplemental to continue the war at $12 billion a month.
Now, I don't think anyone is saying tomorrow, we are going to be able to pull out of Iraq. I think everyone knows that this would be a process. But what we are saying is why do we always have money for war, and then when our soldiers come back and we want to put them through college and reward the effort, all of a sudden the President says we don't have the money when he has just got done borrowing $3 trillion.
I yield to my friend.
Would the gentleman yield?
I just want to share, because this is third-party validation.
Mr. Speaker, I would ask to have this submitted for the Record, all these quotes in order.
Vice President Dick Cheney:
``Oil is being drilled right now 60 miles off the coast of Florida. We're not doing it. The Chinese are in cooperation with the Cuban government.'' That was June 12.
Minority Leader Boehner:
``Right at this moment, some 60 miles or less off the coast of Key West, Florida, China has the green light to drill for oil in order to lower energy costs in that country. Do Congressional Democrats really trust the Chinese that much more than Americans?'' That was from June 11 of this year.
Minority Whip Roy Blunt:
``Even China recognizes that oil and natural gas is readily available off our shores; thanks to Fidel Castro, they've been given a permit to drill for oil 45 miles from the Florida Keys. U.S. energy producers can't go there, and that's because our Congress won't let them.'' That was also on June 11.
But then, as you stated earlier, Congressional Research Service says, facts, third-party validator, nonpartisan Congressional Research Service:
``While there has been some concern about China's potential involvement in offshore deepwater oil projects, to date its involvement in Cuba's oil sector has been focused on onshore extraction in Pinar del Rio province through its state-run China Petroleum and Chemical Corporation (Sinopec).''
From the Miami Herald, they had a quote from Jorge Pinon, an energy expert at the University of Miami:
``China is not drilling in Cuba's Gulf of Mexico waters, period.'' This gentleman, from Miami's Center for Hemispheric Policy, who supports oil and gas exploration, said he met with several congressional offices Wednesday about the China-Cuba connection. He said he told them: ``If you guys want to use this as a scare tactic to lift the moratorium on drilling off the west coast of Florida, at least be factual, be correct. They didn't do their homework.''
June 12, 2008
Republicans Use Scare Tactics To Promote Failed ``Drill & Veto'' Energy
Policies of the Past; GOP Claims China Is Drilling for Oil Off
Florida's Coast Proven False
American families and businesses are struggling to keep up
with skyrocketing gas prices--now averaging a record high of
$4.06 per gallon across the country. Instead of working with
Democrats to pass legislation addressing high energy costs
and moving America to energy independence, Congressional
Republicans are spreading scare tactics and proven falsehoods
to push their failed ``drill and veto'' energy policies of
the past.
Republican leaders--including Vice President Cheney--have
recently claimed that China is drilling for oil off the coast
of Cuba ``60 miles off the coast of Florida.'' But the facts
show China does not have a deepwater drilling contract in
Cuba.
From the Congressional Research Service:
``While there has been some concern about China's potential
involvement in offshore deepwater oil projects, to date its
involvement in Cuba's oil sector has been focused on onshore
oil extraction in Pinar del Rio province through its state-
run China Petroleum and Chemical Corporation. (Sinopec)''
[CRS, 2/29/08]
From today's Miami Herald:
``China is not drilling in Cuba's Gulf of Mexico waters,
period. . . .,'' said Jorge Pinon, an energy expert at the
University of Miami's Center for Hemispheric Policy. . . .
``Pinon, who supports oil and gas exploration, said he met
with several congressional offices Wednesday about the China-
Cuba connection. He said he told them: `If you guys want to
use this as a scare tactic to lift the moratorium on drilling
off the west coast of Florida, at least be factual, be
correct.' They didn't do their homework.'' [6/12/08]
The New Direction Congress is committed to bringing real
relief to those feeling the pinch from high gas and diesel
prices and ensuring the needs of families and businesses are
put before the interests of Big Oil. The American people
deserve the truth and a cleaner, greener, more energy
efficient future.
Republican Scare Quotes:
Vice President Dick Cheney:
``[O]il is being drilled right now 60 miles off the coast
of Florida. We're not doing it. The Chinese are in
cooperation with the Cuban government.'' [6/12/08]
Minority Leader John Boehner:
``Right at this moment, some 60 miles or less off the coast
of Key West, Florida, China has the green light to drill for
oil in order to lower energy costs in that country . . . Do
congressional Democrats really trust the Chinese that much
more than Americans?'' [6/11/08]
Minority Whip Roy Blunt:
``Even China recognizes that oil and natural gas is readily
available off our shores; thanks to Fidel Castro, they've
been given a permit to drill for oil 45 miles from the
Florida Keys. U.S. energy producers can't go there, and
that's because our Congress won't let them.'' [6/11/08]
Rep. George Radanovich (R-California):
``Florida, for example, has objected to U.S. oil
exploration off its coast. But China, thanks to a lease
issued by Cuba, is drilling for oil just 50 miles off
Florida's coast. America's offshore drilling policy amounts
to a government handout of U.S. natural resources to foreign
countries in the name of environmental protection.'' [6/10/
08]
That's exactly correct. That lets the facts speak for themselves. That's why we always have third-party validators and, as we stated earlier, go back to the war. Now you
have the President's former press secretary talking about what really happened:
``We're going to be able to use the oil for reconstruction.''
``We're going to be greeted as liberators.''
``We had nothing to do with outing a CIA agent.''
``If we just keep cutting taxes for rich people, the middle class will at some point benefit, and we will stimulate the whole economy.''
``The tax cuts lead to more revenue.''
Is that why we borrowed $3 trillion over the last 3 years?
And now it's if we just drill more, we're going to reduce the cost of gas, which is not the case. Or if we just drill in ANWR, we're going to significantly reduce the cost of gas. Then it was in the last week or two, China's right off the coast of Cuba stealing it from us. We should be there. Not true.
All of these have not been true, and now the same gentlemen who provided all of those arguments and used the bully pulpit to provide all those arguments are now saying, let's just keep going down the wrong road.
I yield to my friend.
Absolutely. One of the issues is we have in this country only 300 million people. We are now competing in a globalized economy with China and India and a variety of other rising economic countries. So we have to make a point that all of our 300 million citizens, a major disadvantage in human capital, are educated.
You've probably had a similar experience as I have had dealing with interns and staff members and people you have met back in the district. The benefits that a soldier brings to your organization, because of the discipline, the focus and the organizational skills, the ability to deal with situations that are very challenging, and you add to that a college degree or a master's degree or a Ph.D. or a law degree, you are talking about someone who is prepared to really contribute value to whatever organization they are joining, whether it is government or business. There can't be a better investment to make.
And why is it that we have enough wherewithal to borrow the money for the $12 billion a month, but when these soldiers come back, the President says I'm going to veto that bill. We don't have the money for that bill.
I think of all of the issues that you mentioned earlier, it is important for us to recognize that last year under a Democratic Congress, led by Speaker Pelosi and Harry Reid, we made the largest increase for veterans' benefits in the 77-year history of the VA because as Democrats, we are committed to the soldiers. Whether you are on one side of the war issue or another, we all say we are behind the soldier. And when the soldier comes home, you will have the health care and the benefits you deserve. And we want to add onto that this GI bill. So we have made that commitment and will continue to push for that commitment for this GI bill so we can reward the soldiers. It is important for us to deal with this issue.
All of these posters with all of the information can be found on the Speaker's Website, the 30-Something Website that we have. You will be able to find, you will be able to get all of these. All of these are available for Members to look at and analyze and to get a visual of what we have been talking about over the last few minutes.