[Congressional Record Volume 141, Number 31 (Thursday, February 16, 1995)]
[Extensions of Remarks]
[Pages E381-E382]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


        THE DOMESTIC OIL AND GAS PRODUCTION AND PRESERVATION ACT

                                 ______


                          HON. FRANK D. LUCAS

                              of oklahoma

                    in the house of representatives

                       Thursday, February 16, 1995
  Mr. LUCAS. Mr. Speaker, today I rise to bring my colleagues' 
attention to a growing threat to our national security--our increased 
reliance on foreign oil. Last year, for the first time in the history 
of our Nation, we imported over half the oil that we consumed. By the 
year 2010, the Department of Energy [DOE] estimates that imports could 
makeup as much as 60 percent of our Nation's petroleum needs.
  While imports are rising, U.S. oil production is on a drastic 
decline. Crude oil production in 1994 averaged 6.6 million barrels per 
day, in comparison to the 6.8 million barrels per day in 1993--this 
represents one of the lowest oil production levels in the history of 
our country. Oil prices continue to fluctuate and natural gas prices 
are on a steady decline.
  The truth is, that it's just plain tough for domestic oil and gas 
producers to operate in today's market. The cost of operation, high 
taxes, and costly environmental regulations make it difficult to 
continue to drill for oil and gas. It's time for us to start paying 
attention and provide some relief and incentives for the American 
energy industry. Everyone talks a good game about ``America first''* * 
*buy American products* * *hire American labor* * *and I agree. But, 
those same people don't seem to have a problem pouring foreign gasoline 
in our American cars.
  Earlier today I, along with Representatives Coburn, Brewster, Istook, 
Largent, and Watts, introduced a plan that would help boost domestic 
production and lessen our reliance on foreign oil. The Domestic Oil and 
Gas Production and Preservation Act, would provide tax incentives for 
new and marginal well production; relief from burdensome Federal 
regulations; and would abolish existing bans on the export of U.S. 
crude oil. This bill will put people back to work, boost revenues, and 
help make the domestic oil and gas industry more competitive in world 
markets.
  According to a recent investigation conducted by the U.S. Department 
of Commerce, this bill is needed now more than ever. The Commerce 
investigation, conducted under the Trade Expansion Act, apparently 
determined that increased oil imports could impair the national 
security of the United States. The Trade Expansion Act requires the 
President to respond to the report within 90 days of the Commerce 
Department's findings. It is imperative that Congress and the President 
take action to alleviate this threat to our national security.
  Many of my colleagues will turn a blind eye to this report. However, 
I believe it is a warning signal that we must not ignore. This is not 
just an oil State problem, the energy crisis is a national concern that 
everyone should be worried about.
  U.S. marginal wells--or low-income wells--are particularly at risk. 
Most people don't understand that each time a marginal well is plugged, 
jobs are lost and we increase our reliance on foreign oil and run the 
risk of losing one of our Nation's natural resources forever. Plugging 
a well is like shutting down a small 
[[Page E382]] business. When we plug marginal wells, we also lose jobs 
in our communities back home. Plugging a well is permanent. The only 
way to recover these resources is to drill a new well, which is 
extremely costly.
  Nationally, we plug a marginal well every 30 minutes. In Oklahoma, we 
plug eight marginal wells per day. In 1993, the State of Oklahoma had 
over 70,000 marginal wells in operation. The same year, nearly 1,356 
marginal wells were abandoned. As a result, my State of Oklahoma lost 
nearly $20 million in gross revenues.
  This bleak situation has forced businesses to close, imperiled 
thousands of jobs, and caused States to lose large amounts of 
production and income taxes. Over the last decade, this country has 
lost nearly 500,000 jobs as a result of low domestic oil and gas 
productivity.
  It's time for the U.S. Government to open its eyes and support a plan 
to help restore our domestic industry. I believe that the bill we 
introduced today marks the first step in this plan. It will help stop 
the abandonment of wells, pump revenues back into State and Federal 
budgets, and preserve our Nation's natural resources.
  It is in the best interest of our country to support this bill and 
protect our Nation's oil supplies. It would be one of our Nation's 
darkest days should we awaken to find ourselves with a depleted oil 
supply, leaving us totally at the mercy of the world's unstable oil 
producing nations. Our Nation's oil and gas supplies are a national 
treasure that must be preserved and maintained. I look forward to 
working with my colleagues and I urge them to support this critical 
legislation.


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