Renewable Energy and Job Creation Act of 2008 - Motion to Proceed

Floor Speech

RENEWABLE ENERGY AND JOB CREATION ACT OF 2008--MOTION TO PROCEED -- (Senate - June 18, 2008)

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ENERGY

Mr. DURBIN. Mr. President, if you travel into Maryland or Illinois or anywhere across America and ask people what is on your mind, they are going to tell you it is gasoline prices. Why? Because they have to fill the tank each week and cannot believe how much they are paying with the credit cards and cash in their wallet going out in record amounts to fill their cars and trucks and try to get on with their daily lives.

Then you go driving down any street in America, there is that big sign right in your face: $4.08, $4.25. It is a constant reminder of the problems we face. We have tried, on the Democratic side, to move some legislation to deal with this situation. We tried last week to deal with the energy security bill that would have found a way, we think, to start creating an environment to bring down these prices.

It was an effort that most people agree is long overdue. There is a $17 billion subsidy to the oil industry. Why would you do that when this industry is recording record profits, not just for their industry but for any American business?

We have also tried to deal with energy tax incentives for wind power and solar power and things that are the source of power and energy for America's economy in the future. Twice now, not once but twice, the Republicans have refused to join us in even bringing these measures to the floor. They keep stopping us cold.

The Senate's 51 Democrats and 41 Republicans, with absences, with a 60-vote requirement for most major legislation, is within the power of the Republicans to stop debate. They have done it repeatedly.

There is also a concern across America because the response from the Republican side, not just from our colleagues in the Senate but from Senator McCain as well as the President, has been to call on us to drill our way out of this problem.

I am afraid people who suggest we can drill for more oil in America and take care of our problems do not understand basic math. The United States uses 25 percent of the world's oil supply; we are big users for a big economy. Do you know what we have in oil reserves out of all the known oil reserves in the world? We have 3 percent, 3 percent of the reserves and 25 percent of the usage. You cannot drill your way out of the situation.

They do not understand as well that currently there are Federal lands available for drilling that are not being put into production; lands that have already been leased by oil companies. These are lands owned by the people of the United States, and the right to drill for oil and gas has been leased to a private company that sits on it and does nothing.

You say to yourself: Well, it cannot be too much because we need oil, it is so valuable these days. Oil and gas companies--let me show this chart--hold leases to nearly 68 million acres of Federal land that are not producing oil.

This land could produce 4.8 million barrels of oil every day. That is six times the peak production of any drilling in Alaska for the Arctic National Wildlife Refuge. Every time you ask a Republican what is the problem, they say: Man, if we could drill in Alaska, everything would be just fine. Do you know how many acres are in Alaska? There are 1.5 million. The oil companies are sitting on leases for 68 million acres now that they are not drilling.

If they did not think they were valuable, they would not have bought the leases. But they did. They wait year after year, sitting on these leases and keep throwing in our face: Alaska, Arctic National Wildlife Refuge, not telling us it would take 8 to 10 years to bring the first barrel of crude oil out of Alaska, and it would have a minimal impact on the price of gasoline.

Let me show you some charts which kind of tell the story about these 68 million acres in more graphic terms. There are 68 million acres leased to oil companies. These are offshore, 33.5 million leased acres unused offshore; 34.5 million leased acres unused onshore.

Take a look at the Gulf of Mexico region. I know it is hard to pick this up in my presentation. But the red areas are areas currently under lease that are not producing oil and gas, owned by the Federal Government, leased to private oil companies, and not in production.

The blue dots are in production. Look at all the opportunity. So when the President has a press conference, or Senator McCain has a press conference, and says: We need to have offshore drilling, the obvious question, Senator, Mr. President, is: What about all these lands, 68 million acres of which are under lease right now for drilling and not being used?

Take a look at this as well. I see Senator Dodd has arrived on the floor. He has been one of the proponents of this particular point of view. I thank him for this. He is welcome to take a look at the charts and use them at any time in the future.

Here are 34.5 million acres leased to companies on the onshore site. Look at the Western part of the United States. All this red area is Federal land currently leased to oil companies for production not in production. Now take a look at Alaska, 1.5 million acres. That is what they cannot wait to get into.

The honest answer is the oil companies have opportunities now to produce more oil and gas. It is time for us to stop hearing the excuses. We have to look to the reality. The reality is the oil companies are making profits at recordbreaking levels. The reality is speculation is driving up the price of oil, and the reality is the President of the United States has yet to call the oil company executives into the Oval Office to tell them they are wrecking the economy.

He has yet to call them in and say: For goodness sakes, start drilling on the land you already lease from the Federal Government. Instead, it is always the next horizon--if we could just get into Alaska, if we could just get into the Outer Continental Shelf.

We shouldn't have to compromise our health or our environment to make sure our economy is strong.

The PRESIDING OFFICER. Under the previous order, time has expired.

Mr. DURBIN. I ask unanimous consent to continue for 5 minutes in morning business and that time not be deducted from the already reserved morning business of 2 hours on each side.

The PRESIDING OFFICER. Without objection, it is so ordered.

Mr. DURBIN. Have no doubt, drilling in the Arctic National Wildlife Refuge isn't going to have a dramatic impact when it comes to the world's supply of oil. Even the Department of Energy's Energy Information Administration admits that. By the time the Arctic National Wildlife Refuge would be at peak production, which wouldn't take place until the year 2030, 22 years from now, refuge oil would make up only six-tenths of 1 percent of the world's oil. If one listens to some of the political rhetoric, they would think there is this vast resource of oil in Alaska that is going to come to our rescue. It is not. It is a drop in the bucket when we consider today's high gasoline prices. In fact, the effect at the gas pump wouldn't be felt for over 20 years, and then it is only pennies a gallon.

The Arctic Wildlife Refuge is one of America's last pristine, untouched areas. It is home to more than 200 wildlife species, including polar bears, musk ox, and caribou. President Dwight Eisenhower set this area aside over 50 years ago and said: This is something we need to preserve. This is a once-in-a-lifetime-and-beyond opportunity to protect some treasure for future generations.

Ms. MIKULSKI. Will the Senator from Illinois yield for a question?

Mr. DURBIN. I am happy to yield.

Ms. MIKULSKI. I have been listening to the Senator's statement. Today I understand the President wants to lift bans on drilling; is that correct?

Mr. DURBIN. That is my understanding.

Ms. MIKULSKI. I missed part of the Senator's statement. Don't the massive oil companies already have substantial acreage they could start drilling on right now?

Mr. DURBIN. The Senator from Maryland is correct. There is 68 million acres currently under lease to oil companies, Federal land owned by the people for which oil companies are paying money each year for the right to drill for oil, 68 million acres and no drilling taking place. So when the President announces: We just have to find more Federal land to drill on, the obvious question is, why aren't they drilling on the 68 million acres offshore and onshore they currently have under lease?

Ms. MIKULSKI. I find that shocking. I note that the 68 million acres is about six ANWRs.

Mr. DURBIN. If we consider the 1.5 million acres on which they want to drill in ANWR, it is 50 times.

Ms. MIKULSKI. That is not fuzzy math.

Mr. DURBIN. That is not fuzzy math. This 68 million acres would be the size of my home State of Illinois and its adjoining State of Indiana together. That is how much they currently have under lease to drill for oil that they are not touching.

Ms. MIKULSKI. Does the Senator agree, rather than change policies to prevent gouging of consumers and speculation in the market, they would rather change the subject?

Mr. DURBIN. That is clearly what they are doing. Anyone who has had a crying baby knows what a pacifier is. You try to get the pacifier in the baby's mouth so they will calm down. They may still be hungry or crying for some other reason, but you try to quiet them down. That is what we are hearing in response.

When people say drill in Alaska or drill offshore, they want to quiet us down because when we look at the numbers, the numbers do not compute. If we are going to be honest about energy sources, there is a limit to how much we can drill in territory controlled by America. There is much more we have to do to lessen our dependence on foreign oil. We are talking about domestic sources--ethanol, biofuels, diesel. We are talking about renewable and sustainable sources of energy such as wind power and solar power that would not destroy the planet with global warming. That is the big challenge.

Sadly, for 7 1/2 years, this administration has ignored it. Now we are in a terrible situation. I wish this President would show leadership and bring in the oil company executives, sit them down in the White House, and tell them they can't keep demanding these high profits at the expense of American families and businesses. Tell them to start drilling on lands they are currently leasing; try to challenge America to move forward in a fair way to have affordable energy.

I am glad the Senator from Maryland joined me in this conversation. I know she has an important agenda she will initiate now.

I yield the floor.

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