News from Congressman Dale E. Kildee
For immediate release
July 17, 2008
Contact: Alec Gerlach
202-225-3611
 
 

Kildee Calls on Big Oil to Speed Production in Alaskan Oil Fields

And to Drill on 68 Million Acres of Leased Land or Lose It

 

Washington, D.C. Congressman Dale E. Kildee (D-MI) today joined his Democratic colleagues in supporting H.R. 6515, the Drill Responsibly in Leased Lands (DRILL) Act, to promote domestic oil and gas production, particularly in the 20 million acres of the National Petroleum Reserve-Alaska (NPR-Alaska). While Republicans continue to advocate for the oil industry and their increasingly voracious profits, Democrats are taking energy independence in a new direction to decrease reliance on foreign oil and speed domestic production.

 

In an attempt to attain a veto-proof margin of support for passage, H.R. 6515 was considered under suspended rules of the House. Bills considered under a suspended rule must be approved by a 2-1 margin. Republicans rejected, in a partisan vote of 244 - 173, the common sense compromise, which would have increased production of domestic oil and expedited leasing of Alaskan oil fields. The bill failed to gain adequate Republican support for passage and would not withstand the veto of President Bush.

 

“This bill would have spurred domestic oil production now, while the Arctic National Wildlife Refuge would not produce a drop of oil for 5 to 10 years,” said Kildee. “We already have the National Petroleum Reserve-Alaska open and ready for drilling, but Big Oil continues to erroneously claim that the Arctic National Wildlife Refuge is the sole means to relieve consumers of high gas prices. If the oil industry is as eager as they claim to be for more land for domestic production, why have they only drilled 26 wells on 300 leases in the National Petroleum Reserve’s vast supply of domestic oil?”

 

The NPR-Alaska is estimated to have 10.6 billion barrels of oil, making it a larger source than the Arctic National Wildlife Reserve. The DRILL Act would increase domestic oil supply and speed production in Alaska by:

  • Requiring the Secretary of the Interior to sell leases on the NPR-Alaska annually, instead of biannually;
  • Requiring the Transportation Secretary to extend pipelines to bring the Reserve online. Existing pipelines reach within 5 miles of the NPR-Alaska;
  • Reinstating a ban on the export of Alaskan oil, reserving it exclusively for domestic consumption.

 

In addition, H.R. 6515 would compel the oil industry to start drilling on 68 million acres of unused, public lands on which they currently hold leases or bar them from obtaining additional federal drilling leases until they can demonstrate diligent development of those lands.

 

“Until Big Oil begins to use the stockpile of public land on which they currently hold leases, it makes little sense to give them more land that they don’t have the ability or intention of drilling on,” said Kildee. “The 68 million acres of leased but inactive public land is greater in acreage than the entire state of Michigan.”

 

The “Use It or Lose It” provision alone could nearly double U.S. oil production and cut oil imports by one-third. The unused land could produce an additional 4.8 million barrels of oil and 44.7 billion cubic feet of natural gas each day.

 

Families and businesses in Michigan are paying $4.21 a gallon on average for regular gasoline –more than double the cost when Bush took office -- while truckers and farmers are paying $4.87 a gallon for diesel fuel.

 
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