[Congressional Record Volume 141, Number 31 (Thursday, February 16, 1995)]
[Extensions of Remarks]
[Page E379]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


         THE DOMESTIC OIL AND GAS PRODUCTION TAX INCENTIVE ACT

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                           HON. STEVE LARGENT

                              of oklahoma

                    in the house of representatives

                      Thursday, February 16, 1995
  Mr. LARGENT. Mr. Speaker, today, I am pleased to introduce along with 
my Oklahoma colleagues the Domestic Oil and Gas Production Tax 
Incentive Act.
  Recently, the Secretary of Commerce reported the results of an 
investigation conducted, under the Trade Expansion Act, into the impact 
of crude oil imports on the national security of the United States. The 
investigation determined that oil imports threaten to impair the 
national security of the United States. Clearly, it is vital that we 
take immediate action to remove this threat to our national security. 
By removing unnecessary impediments to domestic exploration and 
development we can fortify our domestic oil and gas industry and begin 
to correct this dangerous oil trade deficit.
  The preservation of marginal well production and the encouragement of 
new oil and natural gas production provides a blueprint for fast, 
effective action to protect our Nation's vital economic and security 
interests.
  Currently, nationwide we plug a marginal well about every 30 minutes. 
Since 1983, some 450,000 petroleum jobs have been lost, and nearly half 
of our independent oil companies have gone out of business during the 
same time period. In 1993, nearly 17,000 domestic oil wells were 
abandoned, an average of 46.3 per day. Plugging an oil well is 
permanent. After a well has been plugged it is then cost prohibitive 
and not always technically feasible to re-lease and reequip the well to 
recover the remaining oil and gas.
  It is my belief that this bill provides a positive first step toward 
revitalizing our Nation's dwindling energy industry. I encourage my 
colleagues to join me in this effort to decrease our reliance on 
foreign crude imports and reinvigorate a vital component of our 
economy--the domestic oil industry.


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