Senate Energy and Natural Resources Committee Holds Hearing on Oil Supply and Prices

MURKOWSKI:

I want to thank you, Senator, for asking the question and getting all you gentlemen on record in support of exploration drilling in ANWR—hopefully opening up our resources that we know are so substantial and in recognizing that we can achieve those goals in terms of national security issues—the diversification—speaking to the environment.

And I appreciate, Mr. Simmons, your comments with regards to the tankers. You know, one of the things about ANWR that we get hit with is that this is—somehow we're going to be just spoiling the environment. And I think people need to look at the whole picture here. And you're absolutely right on point when you say that it's far more dangerous—you're far more apt to have an accident when you have single-hulled tankers going up and down the West Coast carrying foreign oil. If we're carrying our domestic product, we've got double-hulled tankers. We've got Americans that are building those tankers who we're providing with jobs. We've got economic security and we've got environmental security.

And, you know, the comment, I believe, Mr. Cavaney, you've mentioned will we look to Russia—we look to the Caspian—we look to other places.

If I recall what's happening in Russia, you know, they're certainly making great strides and advancements, but they've had some terrible environmental problems with their pipelines over there.

When you look at what is happening in Alaska and how we do the job—how we transport that oil—we do it safely, we do it in an environmentally sound manner. We feel we do it better in Alaska than they do anywhere else in the world. And we'd like to be able to continue that.

As you all know, our pipeline is half full and we've got room to do a little bit better.

And also I wanted to, as we're talking about the environment and, again, the advances that have been made, our pipeline is 30 years old. We've got some technology that has come on in the past 30 years that, as you had pointed out as well, is substantial in terms of how we do the job—do it better—do it safer—the seismic technology; the 3-D; the directional drilling; also the new—they're almost like LEGO-type of a system where you're able to put a platform—or an elevated platform so you're not harming the tundra—you're not causing any damage—again, going back to we can do it better and safer than anywhere else in the country.

MURKOWSKI:

I'm kind of getting off on my soapbox rather than asking any specific questions.

Let's see—oh, I wanted also to make a comment, just personalizing as it relates to the—to the airlines. We have talked to folks with Alaska Airlines and are told that with a one penny increase in the price of aviation fuel, it's—what is it -- $4 million to Alaska Airlines. And, in my state, if we're not able to fly around, nothing much happens. So we're very cognizant of what these price increases are going to do within the aviation area.

MAY (?):

Senator, I think the—if I might...

MURKOWSKI:

Please.

MAY (?):

...—all of the states that I see represented on the dais today have significant small market operations. And they are fed, in many ways, by this hub-and-spoke system that we have. And the health of those—of service to those small markets is very, very much dependent on the health of the big carriers. And we are in a perilous financial condition and the energy costs are contributing to that. So it is very much in everyone's interest to do whatever they can to keep these airlines healthy and, in particular, those for small markets because they are going to be the first routes to go in a significant restructuring.

MURKOWSKI:

Well, anything that you all can do within your industry to help us make the production available domestically is going to be greatly appreciated. And, as you all point out, the sooner we can have it happen, the better off we are as a country.

Thank you, Mr. Chairman.