Republican Plan Aims To Increase Domestic Oil Production

Fri. May 2, 2008


Placing the blame on the Democratic leadership and a veto from former President Clinton in 1995 for high gasoline prices, Senate Republicans unveiled an ambitious domestic oil production bill.

The bill is spearheaded by Energy and Natural Resources ranking member Pete Domenici. It would allow oil exploration in the Outer Continental Shelf and oil and gas drilling in 2,000 acres of the Arctic National Wildlife Refuge in Alaska.

Domenici was joined by members of the Senate GOP leaders, including Minority Leader McConnell. He said every effort he has made in the past to increase domestic production has "been blocked for political reasons," but consumer anger over high gas prices would force Democrats' hand this time.

"Consumers are now paying the price for those years of obstruction," Domenici said.

The New Mexican took aim at Clinton, saying had Clinton not vetoed a 1995 bill allowing exploration in ANWR when oil was $19 a barrel, 1 million barrels of oil could have been produced daily.

"We should have that oil here today," said Sen. Ted Stevens, R-Alaska, a longtime proponent of ANWR drilling. The bill would evenly divide ANWR revenues between the federal government and Alaska.

Stevens was joined by Alaska GOP Sen. Lisa Murkowski, who said Republicans were willing to keep ANWR "looking like you never saw man's footprint there" to open it to oil exploration. Stevens said it would create 20,000 jobs.

In a speech on the Senate floor today, Energy and Natural Resources Chairman Jeff Bingaman said drilling in ANWR would provide little benefit.

"The Arctic Refuge would, at its peak, reduce our reliance on imports by about 4 percent, from 68 percent to 64 percent," Bingaman said, citing an Energy Information Administration estimate.

Bingaman called on President Bush to stop filling the Strategic Petroleum Reserve.

"It makes no sense to be putting $120 oil underground," Bingaman said. He also called for increased public education on proper car maintenance and driving slower to improve fuel efficiency.

Stevens angrily denounced comments by Sen. Charles Schumer, D-N.Y., who had criticized Bush's remarks on gas prices made this week.

Schumer said Wednesday that if Saudi Arabia increased daily oil production by 500,000 barrels, it would squelch market speculation and has echoed Bingaman's comments on ANWR.

Stevens said Schumer "doesn't even understand the situation."

Domenici touted the bill's investments in alternative energy sources. The bill requires 6 billion gallons of coal-based fuels by 2022, studies the environmental effects of diesel fuels and would accelerate the production of advanced battery technology.

The measure would repeal a $4,000 fee for new drilling permit applications a one-year moratorium on funding for the commercial leasing of oil shale.

It would also repeal a section of last year's energy legislation that prohibited federal agencies from using alternative fuels with higher lifecycle greenhouse gas emissions than conventional fuels.

by Andy Leonatti

Fri. May 2, 2008