Deficit Reduction Omnibus Reconciliation Act of 2005

DEFICIT REDUCTION OMNIBUS RECONCILIATION ACT OF 2005

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AMENDMENT NO. 2362

Mr. WYDEN. Mr. President, I thank Senator Cantwell for her excellent work and concur with her remarks.

Mr. President, you cannot look the public in the eye and say you are going to drill in ANWR and then ship this oil to China or one of the highest bidders around the world. That is, in my view, exactly what would happen without the Wyden-Talent legislation that is going to be offered now.

Under the legislation, the Secretary could adopt oil lease terms that ensure what is described as the receipt of fair market value. The legislation does not make any mention whatsoever of what we have heard constantly for months and months; and that is this is somehow supposed to reduce our Nation's dependence on foreign oil or increase our energy security.

So what you would have is a situation where if the highest price is in South America, Arctic oil would go to South America; if the highest price is in the Far East, Arctic oil would have to go to the Far East; and, certainly, given the insatiable demand for energy in China, I think, with the dollar being weak, as sure as the night follows the day, without the Wyden-Talent amendment, this oil would end up going to the highest bidder in the Far East, particularly the Chinese.

I do think this amendment is the very least the Senate can do to put a Band-Aid on what I think is a fundamentally flawed decision. I hope, as colleagues look at this--we had the debate in the Energy Committee--they get a sense of exactly what is involved.

With the inflated revenue projections of $2.4 billion from oil leases in the Arctic included in the budget, the Federal Government is going to be forced to sell the oil to the highest bidder to even come close to that amount. In fact, the Congressional Budget Office estimates that net Federal proceeds, over a 10-year period, would be $2.6 billion, with the initial royalties from production near the end of the decade. The budget assumes nearly all of those revenues in the next 5 years alone.

So what that means is, if we are going to have any prospect of making sure this oil goes to the United States, we have to have this legislation.

I also point out that the distinguished senior Senator from Oregon--we still describe him as the senior Senator--Mark Hatfield, shared this position for years. He was a supporter of the oil industry, but he said: By God, aren't we going to keep this oil here at home? Yet what we heard in the Energy Committee is we are concerned about the Mercantile Exchange, we are concerned about all kinds of questions about trade law. This is not about the Mercantile Exchange. This is not about trade law. This is about whether the pledge that has been made by supporters, that this oil is going to stay in the United States, gets honored.

I would like to tell my colleagues, particularly my good friend from Alaska, who said, ``Oh, it is a sure bet this oil will stay in the United States,'' that I specifically asked--I have the transcript with me--executives from BP, when they came to the Senate Commerce Committee, whether they would make a commitment to keep Alaskan oil in the United States. According to the official Senate transcript that I have, they would not make that commitment. That is why this legislation is needed. To allow
drilling, and then shipping it overseas, in my view, is a case of two wrongs making a colossal wrong.

So I hope the Senate now will accept this amendment. In my view, it is the very least that can be done to address the needs of consumers in our country.

I thank my friend from Missouri, who contacted me about his interest in this issue. With supporters of oil drilling claiming oil is needed to reduce our Nation's dependence on foreign oil, we ought to recognize that in this Senate budget reconciliation bill we are not increasing U.S. energy security by one drop of oil--not one drop of oil--unless we have the assurance that this amendment provides that the oil would stay in the United States.

I thank my colleague from Washington State for giving me this time. I appreciate the cooperation of the Senator from Missouri, who I think is prepared to speak at this time.

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