WASHINGTON,
DC – U.S. Sen. Lisa Murkowski, R-Alaska, delivered a speech on the floor of the
Senate today focusing on ways to improve America’s energy policy, particularly
the need for greater domestic oil production. The prepared remarks are attached
and the speech can be viewed here.
The
combination of international events and domestic policy restrictions threaten
both America’s economic recovery and national security. Unrest and
instability abroad have pushed oil prices to their highest levels in two years,
and today’s already-painful gasoline prices are projected to reach $4 a gallon
in the months ahead.
Even when
civil unrest is not spiking the cost of oil, our nation’s foreign dependence
still comes at a staggering cost. America spent $333 billion on oil imports
last year. For the month of December, the U.S. trade deficit was $40.6 billion,
with petroleum-related imports accounting for 62 percent of that total. Over
the course of decades, trillions of American dollars have been sent out of our
economy to pay for oil from abroad – including many countries that are led by
non-democratic or anti-American regimes.
It doesn’t
have to be this way. America has ample resources to reduce its foreign oil
dependence, create well-paying jobs, raise revenue to pay down the $14 trillion
national debt, and develop advanced energy technologies. Increased domestic
production will result in a stronger economy, greater security, and, because
our safeguards are among the most stringent in the world, a cleaner environment
as well.
Five Ways to Increase American
Production
- Look
North – to Alaska: Alaska has huge reserves of
oil just waiting to be tapped for the good of the nation. The National
Petroleum Reserve-Alaska, just 2,000 acres of the non-wilderness portion
of the Arctic National Wildlife Refuge, and the Chukchi and Beaufort seas
hold at least 40 billion barrels of recoverable oil. That’s enough to
replace crude imports from the Persian Gulf for nearly 65 years. All three
areas are effectively off-limits to new development, however, due to
decisions made or continued by this administration.
- End
Gulf “Permitorium:” It’s time to restore
production in the Gulf of Mexico. This administration has slowed permits
for new deepwater development to a crawl. This could cost the United
States some 200,000 barrels of new supply if left in place for a year, far
more if left in place longer, and tens of thousands of jobs in the
meantime. Courts have also ruled – repeatedly – that this “permitorium” is
unlawful. Most recently, the Interior Department was held in
contempt for its “dismissive conduct” and “determined disregard” of
previous orders to end its de-facto moratorium.
- Cut
Red Tape: In January, President Obama
ordered his executive agencies to review their regulations to ensure they are
cost-effective and not unduly damaging economic growth and job creation.
The Interior Department clearly has its work cut out. In late 2008,
Interior stated that the “number of required plan and permit approvals is
on the order of 25 to 30” for a typical offshore lease. Over the past two
years, this administration has sought to add more layers to – rather than
streamline – these already significant requirements, which are a major
reason why the leaseholders need years to begin production.
- “All
of the Above:” The alternatives to
conventional oil, natural gas, and coal are not limited to wind, solar and
geothermal. Far from it. America will utilize fossil fuels for decades to
come, and our energy policy needs to account for that fact. The good news
is that according to the Congressional Research Service, the United States
has a larger fossil fuel endowment than any other nation, and that doesn’t
even include our tremendous potential in oil shale and methane hydrates.
- Shelve
Bad Ideas: With oil prices on the rise,
the administration and many in Congress seem to have forgotten that the
oil industry provides Americans with energy and jobs, and instead have
begun to treat its companies as an untapped source of government revenue.
Proposals to take more from oil companies have included a range of tax
increases, “use it or lose it” and similar fees, and substantially shorter
lease terms. All of these anti-production efforts deprive companies of a
stable operating environment, which in turn reduces their willingness to
invest in America. It’s time to set these bad ideas aside and adopt a more
constructive approach. Instead of seeking to punish the industry, a better
way forward would be to let it tap into more of America’s vast resources,
and then make good use of the resulting revenues.
America has
options. Responsible development would reduce energy prices, create jobs,
improve our security, raise revenue to pay down the debt, and allow America to
invest in new technologies for the future. We can’t afford to ignore any one of
those benefits – let alone all of them – any longer.
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