Domenici Urges the House to Join the Senate and “Stem the Rising Tide of Energy Prices”
December 6, 2006
04:51 PM
Washington, D.C. – Senate Energy & Natural Resources Chairman Pete V. Domenici today urged Members of the House to pass the Senate’s bipartisan OCS bill, legislation that will bring 1.26 billion barrels of oil and 5.8 trillion cubic feet of natural gas to market over the next several years, in a speech on the floor of the U.S. Senate.
Below is the prepared text of Chairman Domenici’s speech:
“Just last week, the price of natural gas was $7.79 per million Btu. That is nearly double the price it was two months ago. In October, natural gas was selling for $4.01 on the spot market.
“This kind of price instability harms consumers, harms businesses, is devastating to manufacturers and is a threat to our economy.
“On August 1, 71 Senators in this chamber cast what I consider one of the most important bipartisan votes of the year. We voted for the Gulf of Mexico Energy Security Act, a bill that will open 8.3 million acres in the Gulf of Mexico for oil and gas exploration. This exploration could bring an estimated 1.26 billion barrels of oil and 5.8 trillion cubic feet of gas to market over the next several years.
“The support for this bill came from my colleagues from the Northwest, the Southeast and the Southwest; from the Northeast and the Midwest; from both coasts; from the areas in between and from both parties. We all acted to stem the rising tide of energy prices.
“We cast that vote for families worried about the high cost of their energy bills. We cast that vote for American businesses, large and small, who have been hit hard by rising energy costs. We cast that vote for manufacturers who have been forced to shut down hundreds of U.S. plants in the last several years and for the millions of American workers who lost their jobs when those plants closed.
“Natural gas prices climbed 400 percent from 2002 to 2005. In that time, the chemical manufacturing industry alone closed 70 U.S. plants and announced plans to close 40 more, largely because of skyrocketing gas prices.
“We joined together, Republican and Democrat, to tackle that problem. We cast a strong, bipartisan vote for a bill that is an important step toward tackling our energy challenges and a small but meaningful step toward reducing our reliance on foreign oil.
“This week, I hope and am confident the House will take up our bill. I anticipate an equally strong bipartisan vote from the House.
“This legislation is critically important to consumers and the economy. The oil resources in this region are impressive. But the vast reserves of natural gas are the real bonanza. We believe there is enough natural gas in Lease Sale 181 and Lease Sale 181 South to heat 6 million homes for 15 years.
“Largely because of these gas reserves the Wall Street Journal has called this bill “an easy victory for the U.S. economy.” On the other side of the political spectrum, the New York Times wrote that this bill meets “an immediate need” and is “a reason to drill in the Gulf.”
“Rising natural gas prices have driven up the prices of everything from plastic cups to bedding and tires. Last month, a company called Union Products announced that it would stop making the pink plastic flamingos that have decorated American lawns for 50 years. The company, which closed its doors a month shy of its 50th birthday, went out of business because of the rising cost of plastic resin, made from natural gas, and electricity.
“I was saddened to read that this small and unique manufacturing company was the latest victim of high natural gas prices. The National Association of Manufacturers estimates that 3.1 million high-wage manufacturing jobs have been lost since 2000 largely due to inadequate supplies of natural gas. This week, the House can join us in doing something about that. I urge Congress to join in a vote for our consumers, our businesses, our workers and our economy. Let’s give the American people this easy victory.”
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