-Cp
07-29-2008, 12:00 PM
My father-in-law wrote one of our State's Senators, Patty Murray (D) - about what she's doing to help lower gas prices etc and this was her response:
From: Senator@murray.senate.gov
To:
Sent: 7/29/2008 8:28:33 A.M. Pacific Daylight Time
Subj: Response from Senator Murray
Thank you for writing me regarding your support for oil drilling in the United States. I appreciate hearing your views on this important matter.
Just this week, I filled up my gas tank in Washington State at $4.45 a gallon. I understand and share your concern about how high gas prices are affecting families, businesses, and our entire economy, and I am dedicated to finding solutions to this problem. There are many options that I am discussing with my colleagues, from addressing speculation in the futures market to expanding the number of leases for land available to oil companies.
As you know, President Bush recently proposed expanding the amount of area available for domestic oil production in the Outer Continental Shelf (OCS). Bans on oil drilling and development were placed on parts of the OCS by both Congressional legislation in 1982 and by President George H.W. Bush in 1990, and later extended by President Clinton until 2012. President Bush is calling on Congress to lift the ban and allow for expanded offshore drilling in the OCS, arguing that lifting the ban will lower oil prices and allow for more domestic production of oil.
However, oil companies have made it clear they would not necessarily choose to increase refining or production of gasoline and other petroleum products even if those OCS acres were made available. In fact, there are currently 41 million acres in the OCS that are leased for oil drilling, and of those, just over 8 million are being drilled, according to the Minerals Management Service (MMS). That leaves approximately 33.5 million acres of OCS lands that are already open for drilling, and yet oil companies have chosen to not drill there. In addition, MMS estimates that roughly 79 percent of America's technically recoverable offshore oil reserves are available for leasing, while just 21 percent are covered by the current ban. Since oil companies have failed to increase domestic production by using the acres open to them, there is no guarantee that they would increase production even if additional OCS acres were made available.
Rather than giving oil companies access to more land and allowing them to drill at their own pace, I believe Congress should strongly encourage the utilization of lands already available for drilling. That is why I am working closely with Senator Jeff Bingaman (D-NM) on a proposal to speed up domestic oil production on federal lands that are already leased by shortening lease terms and requiring oil companies to comply with benchmarks on their progress. In addition, the proposal would accelerate leasing in acres that are currently open to leasing. These areas are estimated to contain 78.5 million barrels of oil, which is enough to displace our imports from the Persian Gulf for 90 years.
The proposal would also target reducing demand for oil by investing in public transportation and clean, renewable fuels and battery technologies to decrease our dependence on oil and diversify our energy supplies. Also, this proposal would target oil companies and the tax breaks they currently receive. Even though large oil companies have reported years of record profits, they have failed to make adequate investments in increasing supply and instead are using their excessive profits to buy back their own stock. I firmly believe in making short-term investments to help resolve this situation while also making long-term investments in fuel efficiency, renewable fuels, and limiting our dependence on fossil fuels.
As you know, there is evidence that speculation in the futures market may also be impacting the price of oil. I am working with my colleagues to prevent excessive speculation and manipulation and to ensure that energy trading markets are properly regulated. That is why I coauthored S. 3268, the Stop Excessive Speculation Act of 2008, to help address speculation on the energy futures market. This bill will increase the monitoring capabilities of our regulatory agencies and require traders to disclose more information that could be helpful in tracking and prosecuting illegal practices. Once implemented, these measures will ensure the price of oil is not being artificially inflated by traders who stand to benefit from high oil prices.
Easing the price at the pump and reducing America's dependence on oil are two of my top priorities. I am working to accelerate oil production on lands that are already available, repeal tax breaks for oil companies, and invest in energy efficiency and create a cleaner, more diversified energy supply using American workers and innovation. I know real families are struggling, and I share your concerns and will keep your thoughts in mind as the 110th Congress continues to debate energy legislation. Thank you for contacting me, and please don't hesitate to write again.
From: Senator@murray.senate.gov
To:
Sent: 7/29/2008 8:28:33 A.M. Pacific Daylight Time
Subj: Response from Senator Murray
Thank you for writing me regarding your support for oil drilling in the United States. I appreciate hearing your views on this important matter.
Just this week, I filled up my gas tank in Washington State at $4.45 a gallon. I understand and share your concern about how high gas prices are affecting families, businesses, and our entire economy, and I am dedicated to finding solutions to this problem. There are many options that I am discussing with my colleagues, from addressing speculation in the futures market to expanding the number of leases for land available to oil companies.
As you know, President Bush recently proposed expanding the amount of area available for domestic oil production in the Outer Continental Shelf (OCS). Bans on oil drilling and development were placed on parts of the OCS by both Congressional legislation in 1982 and by President George H.W. Bush in 1990, and later extended by President Clinton until 2012. President Bush is calling on Congress to lift the ban and allow for expanded offshore drilling in the OCS, arguing that lifting the ban will lower oil prices and allow for more domestic production of oil.
However, oil companies have made it clear they would not necessarily choose to increase refining or production of gasoline and other petroleum products even if those OCS acres were made available. In fact, there are currently 41 million acres in the OCS that are leased for oil drilling, and of those, just over 8 million are being drilled, according to the Minerals Management Service (MMS). That leaves approximately 33.5 million acres of OCS lands that are already open for drilling, and yet oil companies have chosen to not drill there. In addition, MMS estimates that roughly 79 percent of America's technically recoverable offshore oil reserves are available for leasing, while just 21 percent are covered by the current ban. Since oil companies have failed to increase domestic production by using the acres open to them, there is no guarantee that they would increase production even if additional OCS acres were made available.
Rather than giving oil companies access to more land and allowing them to drill at their own pace, I believe Congress should strongly encourage the utilization of lands already available for drilling. That is why I am working closely with Senator Jeff Bingaman (D-NM) on a proposal to speed up domestic oil production on federal lands that are already leased by shortening lease terms and requiring oil companies to comply with benchmarks on their progress. In addition, the proposal would accelerate leasing in acres that are currently open to leasing. These areas are estimated to contain 78.5 million barrels of oil, which is enough to displace our imports from the Persian Gulf for 90 years.
The proposal would also target reducing demand for oil by investing in public transportation and clean, renewable fuels and battery technologies to decrease our dependence on oil and diversify our energy supplies. Also, this proposal would target oil companies and the tax breaks they currently receive. Even though large oil companies have reported years of record profits, they have failed to make adequate investments in increasing supply and instead are using their excessive profits to buy back their own stock. I firmly believe in making short-term investments to help resolve this situation while also making long-term investments in fuel efficiency, renewable fuels, and limiting our dependence on fossil fuels.
As you know, there is evidence that speculation in the futures market may also be impacting the price of oil. I am working with my colleagues to prevent excessive speculation and manipulation and to ensure that energy trading markets are properly regulated. That is why I coauthored S. 3268, the Stop Excessive Speculation Act of 2008, to help address speculation on the energy futures market. This bill will increase the monitoring capabilities of our regulatory agencies and require traders to disclose more information that could be helpful in tracking and prosecuting illegal practices. Once implemented, these measures will ensure the price of oil is not being artificially inflated by traders who stand to benefit from high oil prices.
Easing the price at the pump and reducing America's dependence on oil are two of my top priorities. I am working to accelerate oil production on lands that are already available, repeal tax breaks for oil companies, and invest in energy efficiency and create a cleaner, more diversified energy supply using American workers and innovation. I know real families are struggling, and I share your concerns and will keep your thoughts in mind as the 110th Congress continues to debate energy legislation. Thank you for contacting me, and please don't hesitate to write again.