Legislation Would Make Big Oil ‘Use It or Lose It’
By JOSELYN KINGArticle Photos
Total U.S. oil production would double - and domestic natural gas amounts would jump by 75 percent - if big oil companies would use the drilling permits they've already been granted, according to a report by the House Committee on Natural Resources.
The committee's chairman, U.S. Rep. Nick Rahall, D-W.Va., has proposed the Responsible Federal Oil and Gas Lease Act, requiring oil companies to use land leases they've already been granted; otherwise they would lose the leases. The Secretary of the Interior would have 180 days to establish standards defining what are "diligently developed" lands.
The legislation would pertain to drilling of 68 million acres of land, both on-shore and offshore, that already is leased to oil companies but is not being developed.
"Big Oil, as many Americans already suspect, are perfectly fine with high gasoline prices at the pump while they hold back domestic production on federal leases and enjoy world-record profits," Rahall said. "I am calling them on the carpet. I am calling their bluff. We are not going to continue to allow them to speculate and profiteer with public resources to the detriment of the American people."
The legislation is based on regulations that already exist in the coal industry, where coal companies are required to "diligently develop" their leases over the time of a typical 20-year lease. Oil and gas companies presently are not required to do so, and their leases are typically for 10 years.
Because there are no diligent development requirements, oil and gas companies can stockpile leases in a non-producing status, the committee report states.
It encourages them to hold nearly 68 million acres of federal land without producing oil or gas.
The report notes that if active drilling were occurring on these lands, an additional 4.8 million barrels of oil and 44.7 billion cubic feet of natural gas would be produced each day.
The numbers have convinced U.S. Rep. Charlie Wilson, D-Ohio, that drilling for oil at the Arctic National Wildlife Refuge in Alaska won't have the most immediate impact on lowering gas prices in the U.S.
"We're confused," Wilson said of President George W. Bush's push to drill at ANWR. "Why does it make a difference to drill in ANWR if the oil companies already own the right to drill on lands and they are not doing so? We know they have sufficient supplies on these lands. Why do they have to drill in ANWR?
"The oil companies can't keep stockpiling and not drilling," Wilson added. "This is helping no one. We have the oil. Why are we not drilling the oil we have?"
Wilson noted he does support drilling in ANWR but doesn't see its importance.
The report states ANWR drilling would not affect U.S. importing of oil until at least 2022, and that production there wouldn't start for at least 10 years.
"We can't wait for 10 years for ANWR to produce enough gas for us," Wilson said. "It is affecting our dollar and food prices. So much is going on because of it."
Gerry Griffith, a spokesman for U.S. Rep. Alan Mollohan, D-W.Va., said he had not yet spoken to Mollohan about the legislation Wednesday, but he said Mollohan does support drilling in ANWR.
U.S. Rep. Shelley Moore Capito, R-W.Va., also backs Bush's call for more domestic oil production from Alaska.
"For years Congress has blocked efforts to expand our nation's domestic production of energy off-shore and in Alaska, and now we're paying the price at the pump," said Capito. "It's well past time to see that policy reversed.
"There are currently more than 175 trillion cubic feet of natural gas resources and more than 1.1 trillion barrels of oil that are off limits for domestic production. With gas prices at more than $4 per gallon, we can no longer afford to let these resources sit idle," she added.
"Obviously we cannot simply drill our way out of this problem," Capito said. "There's no doubt that domestic exploration must be coupled with investment in renewable resources like wind, solar or biomass - but to ignore our immense domestic resources is short-sighted and irrational. Domestic crude oil production is down more than 12 percent since 2000 - not because of a shortage of new oil wells, but because the Congress has kept some of our most energy-rich regions off limits for drilling.
"Continued obstruction from House leadership on this issue will do nothing to help West Virginia families that are struggling with high gas prices, and I implore Nancy Pelosi and her leadership team to finally listen to the 67 percent of the American people who are calling for expanded domestic production, and the nearly unanimous population of West Virginians who want to pay lower prices at the pump."
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brettnj
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07-12-08 7:35 PM
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Who cares. The best thing that could happen is to have the Chinese drill and find the oil. US companies finding oil woouldn't lower the price. Only the Chinese would thumb their nose at OPEc and offer gas at under market pricing. That's why so mnay americans shop at Wallmart. I support Chinese drilling more than I support US companies drilling.
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Maestle
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06-21-08 5:31 PM
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You didnt actualy make an arguement, or mention where you buy your gasoline. Good job on looking silly though.
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UNCOMMONSENSE
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06-21-08 9:39 AM
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Stop funding terrorism! Google "terror free oil" Buy American gasoline!
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RobinHood
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06-20-08 2:50 PM
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I do think more domestic drilling would be good for the US, because it will create more jobs that pay a good wage and the money will be going to a company in America instead of one outside the US. I just don’t think it will lower prices they way some people think it will.
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RobinHood
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06-20-08 2:47 PM
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Yes, I agree, the stock market is a volatile thing, it is influenced by speculation. And that is one of the reasons the price per barrel is so high, but another reason is because of our dependency on it, foreign and/or domestic. They can and will sell it for what we will and must pay because there isn’t any other choice, except to go without it. Domestic drilling “should” help lower the price, but I don’t think it would bring it down too much. First, because of the cost to drill (wages, set-up cost, operational cost, etc.). Then second, because for profit companies are there to do just that, to make as much of a profit as they can. Which is what they should do, that is why they went into business. If we must pay such a high price though, then it should be going to an American company.
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Georgetwin
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06-20-08 12:16 PM
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KTBass, say “Thank You” to an Enviro-Nazi.
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Georgetwin
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06-20-08 10:32 AM
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RHood, I have to disagree. Markets BOOM and Markets BUST and commodities/futures are the most volatile segment of The Free Market. Just a few years ago Microsoft was trading at $90.00 a share, it is now around $30.00.
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RobinHood
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06-20-08 10:06 AM
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Even if they were allowed to drill anywhere they wanted to in the US, prices will not go down. The gas prices will not get better, until there is a reasonably priced vehicle that uses an alternative fuel that they must compete with. Currently we have hybrids, hydrogen fuel cell technology, etc. but they are not real competing factors because many people can not afford to use them.
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Georgetwin
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06-20-08 9:58 AM
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Maestle, The Enviro-Nazis have hamstrung industry in this country for the past 30 years. Republicans in Congress are FAR from blameless, but you don’t find many Green Goofballs voting Republican.
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UNCOMMONSENSE
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06-19-08 9:32 PM
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Maestle, Use your computer before you publicly embarass yourself again! Believe it or not you can do MORE than just look at pretty pictures!
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Maestle
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06-19-08 9:03 PM
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FYI, all you people blaming democrats. There is nothing stopping these companies from exploiting the oil and gas resources they have access to. Only the greed of the republicans that control these companies.
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Maestle
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06-19-08 9:02 PM
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UNCOMMONSENSE If your going to gripe and whine. At least get your facts straight. Yes we use aprox 20million barrels of oil a day. But we produce aprox 9million, not 5. We only export about 1million barrels of oil, not "most". Also, there is not "plenty of oil" The entire US proven reserves of crude oil, wouldn't last untill todays gradeschoolers graduate college. Not even close. Yes, we've got tons of oil shale, But its expensive, and not a solution to our problem, its hardly a band aid. At least read before you rant.
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nicetry
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06-19-08 1:05 PM
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This just keeps getting better every day!!! Now not only do the oil companies gouge the price because of shortages, they create their own shortages by not drilling in land they lease. They have you by the nads and just keep squeezing.
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Georgetwin
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06-19-08 12:24 PM
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It appears The Energy Policy on The DNC involves three things: 1. Knee Pads 2. Chapstick 3. their Tree Hugger Masters Do the math.
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NEMESIS
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06-19-08 12:00 PM
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This is as bad as farm land not being used while our food prices increase.
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Georgetwin
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06-19-08 10:51 AM
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Laying aside Enviro Issues, what effect would new and/or existing wells have on the economy? Folks griping about 5% unemployment are disingenuous to come out against SO MANY potential new, long term, jobs. Oil is used in MANY other things besides fuel, so WHY NOT produce as much as we can. Anyone with natural gas heat should think about what producing more natural gas will do to their heating bill as well.
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RangerRon
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06-19-08 10:09 AM
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wvforsale - The same message I gave to Nancy SI - I know you are a Liberal and facts mean less than nothing so would you be so kind as too provide your source of information ? Were you aware that during the period of 1995 - 2005 65% of the "holes" punched into the ground did not producxe a drop of oil ?
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UNCOMMONSENSE
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06-19-08 10:01 AM
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First, there is no shortage of oil. And there is in fact enough oil under US soil to sustain this country's energy needs for more than 100 years! Oil companies with the help of Republicans and Democrats have have put profit before Patriotism! According to goverment figures, US oil consumption is at 20,000,000 barrels per day. The US is currently producing more than 5,000,000 barrels a day! However, most of this oil is sold for higher profit to foreign countries! The alskan pipeline ALONE is pumping more than 2,000,000 barrels a day!! But that oil is loaded on tankers and sold over seas!! Yes the United States has plenty of oil to meet both our current AND future needs! But as long as there's a profit to be made by betraying your country, big oil and politicians will continue to sell their patriotism for a price!!!!!!!!!!!!!!!!
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kaiserhund
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06-19-08 9:03 AM
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It's all about greed!! Greed has ruined our once great nation!!!
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Byronw
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06-19-08 8:09 AM
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There are enormous proven oil reserves in Prudhoe Bay, Alaska; our government ordered these oil wells to be capped. Lindsey Williams, a chaplain on the pipeline during construction, has been writing and lecturing about this for more than 20-years. A copy of one of his books “The Energy Non Crisis” is on my webpage wwwdot byronwinedotcom . The technology to greatly reduce reliance on oil has been known for decades. In Europe, 1983, you could buy a 72-mpg car also in 2002 you could buy a 104-mpg car. Shell Oil demonstrated a 376-mpg car in 1973. Our government requires 35-mpg by 2020. My webpage has videos of seven cars fueled with water they use no gasoline. The Japanese have two water fueled cars. You are expected to believe this nation can send a probe more than 400-million miles, land safely and dig in the soil, yet, can not duplicate Japanese technology. Why drill, just replace those in congress who are wringing their hands and doing nothing to solve the issue.
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NancySI
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06-19-08 7:16 AM
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Wonder what the difference is in the manufactured electricity shortage in California by ENRON a few years ago that caused brownouts and prices to soar and the price of gasoline to almost triple in 8 years? Thanks Congress for closing the Enron Loophole in the Farm Bill, which Senator McCain voted against.
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