Domenici, Senate Republicans Unveil Plan To Increase Domestic Production
American Energy Production Act Seeks to Bring Lower Prices, Less Foreign Oil
May 1, 2008
04:39 PM
WASHINGTON – U.S. Senator Pete Domenici, ranking member of the Senate Energy and Natural Resources Committee, today introduced legislation intended to dramatically increase domestic production of oil and natural gas in order to lower prices and make America less dependent on foreign sources of oil.
The American Energy Production Act of 2008 (S.2958) was introduced today by Domenici and seventeen co-sponsors from across the country. By expanding production offshore and in Alaska, the legislation will produce up to 24 billion barrels of oil—enough to keep America running for five years with no foreign imports. In addition, billions more barrels of fuel would be made available through development of oil shale and coal to liquids technology.
“For years now, I have been trying to develop more domestic production of oil and gas, and for years, with one exception in the Gulf of Mexico, I have been blocked for political reasons. Consumers are now paying the price for those years of obstruction,” Domenici said.
“The bill I’m introducing today will produce up to 24 billion barrels of oil through common sense measures to open up areas offshore and in Alaska for exploration. It will also allow us to develop billions more barrels of fuel through oil shale and coal to liquids technology. This measure will go a long way toward helping us break the cycle of dependence on foreign sources of oil,” he continued.
Domenici pointed out that had President Clinton not vetoed exploration in the Arctic National Wildlife Refuge (ANWR) in 1995, when oil was $19 a barrel, America would currently be receiving over 1 million barrels a day from Alaska. The amount of oil in ANWR is enough to supply New Mexico for 222 years.
The American Energy Production Act will also lift the one-year moratorium on developing oil shale in Colorado, Wyoming and Utah. Over 2 trillion barrels of oil shale currently exist in those states—three times as much oil as Saudi Arabia has in reserve.
The bill will allow petitions for leasing activities in the Atlantic and Pacific regions of the Outer Continental Shelf in order to tap into the 14 billion barrels of recoverable oil in those areas. Exploration will occur off the shore of a state if that state’s Governor petitions to have the moratorium on exploration lifted.
“Congress has spent billions to research and develop clean sources of energy. I’ve been a leader in those efforts and I will continue to be. However, we must face the fact that no matter what we do, America will still need oil, and without action, an increasingly large portion of that oil will come from unstable regions. With gas prices soaring higher and higher, we must produce more at home, and this bill allows us to that in an environmentally responsible manner,” Domenici said.
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