[Congressional Record Volume 152, Number 19 (Wednesday, February 15, 2006)]
[Senate]
[Pages S1359-S1360]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. PRYOR (for himself, Mr. Warner, and Mr. Talent):
  S. 2290. A bill to provide for affordable natural gas by rebalancing 
domestic supply and demand and to promote the production of natural gas 
from domestic resources; to the Committee on Energy and Natural 
Resources.
  Mr. WARNER. Mr. President, I am privileged to rise with the 
distinguished Senator from Arkansas to introduce a bill today entitled 
the Reliable and Affordable Natural Gas Energy Reform Act of 2006
  In September of 2005, at the time the Senate was examining a number 
of energy proposals under the distinguished chairmanship of Senator 
Domenici, I introduced a bill at that time quite similar to this one, 
although it included oil. This measure sticks to gas, and gas only, to 
enable the several States across our Nation to take such steps under 
State law, in combination with the Governors and the respective 
legislatures of the several States that desire to explore and the 
desire to drill for energy off their shores. That bill as yet is still 
on the docket.
  Since that time I have had the great pleasure of joining my colleague 
from Arkansas to put this bill in. I am delighted that he indicated he 
would like to step forward and take the lead. I readily accede to that 
request.
  So much of the concern about drilling offshore is understandably in--
and I am not here to criticize--the environmental community. I think my 
colleague from Arkansas can help me eventually convince the 
environmental community that the time has come for offshore drilling.
  Two things have occurred in the interim between the 1988 moratorium, 
namely advancement in technology so we can safely, by engineering, put 
the wells in; and the second is the ever-tightening noose around the 
citizens of the United States of America with regard to their energy 
sources. The third thing that is occurring is the growing competition 
for energy worldwide--India coming on with enormous consumption 
requirements, and China with even larger consumption requirements.
  I think the time has come that the Congress begin to reexamine its 
old policies with regard to those lands offshore of our several States.
  At this time, I yield the floor to my colleague from Arkansas.
  The PRESIDING OFFICER. The Senator from Arkansas is recognized.
  Mr. PRYOR. Mr. President, as the distinguished Senator from Virginia 
acknowledged, we have a problem when it comes to the high cost of 
natural gas. We feel strongly that this bill which we are cosponsoring 
can be part of the solution.
  About one-quarter of all natural gas is used to produce electricity, 
but the rest is used to manufacture plastics that go into things such 
as cars, computers, and medical equipment. Fertilizer and 
pharmaceutical production is highly dependent on natural gas. In fact, 
for nitrogen fertilizer, a total of 93 percent of the production cost 
of that fertilizer is the component of natural gas.
  The price of natural gas--which, by the way, is one-quarter of the 
energy of this country--has more than doubled in the past year and it 
is anticipated that over the next 20 years you will see a 40-percent 
increase for the usage and need of natural gas in the United States.
  Another thing about natural gas that makes it very different than oil 
is natural gas is not easy to ship across oceans. Certainly there is 
some liquid natural gas technology out there, but a vast majority--all 
but a tiny fraction of the natural gas we use in this country--comes 
from United States wells, or comes out of Canada. We have a great 
reserve of natural gas, not only in the Continental United States, not 
only in Alaska, but also off our shores. Most notably, the one that 
most people are aware of is in the Gulf of Mexico.
  Our legislation will allow the Secretary of the Interior to offer 
natural gas leases as part of the Outer Continental Shelf leasing 
program.
  Let me say this: As Senator Warner of Virginia said a few moments 
ago, we are referring only to natural gas. We have been very careful to 
make sure this bill does not include petroleum or oil.
  I hope no one will be confused by an earlier draft because we 
included some references to oil, but we have very carefully taken all 
of those out of the bill. I think the bill is very clear on that point 
now, that this refers only to natural gas supply and exploration.
  Mr. WARNER. Mr. President, will the Senator yield for a moment on 
that point?
  Mr. PRYOR. Yes.
  Mr. WARNER. Mr. President, we earlier distributed material which 
referred to oil which was in an earlier draft. I have been in contact 
with the environmental community, and so forth. It is clear to me at 
this point in time that we have in this bill just gas. My fervent hope 
and belief is that the environmental community will see the 
advancements in technology and the tremendous requirements of this 
country for natural gas, that we can restrict it to gas.
  At a later time, if we are successful in proving that the natural gas 
can be drawn and is safe, which I am confident we can do, maybe due to 
world circumstances and domestic circumstances we could go back at that 
time and revisit the issue of oil.
  I thank the Senator.
  Mr. PRYOR. I thank the Senator.
  Mr. President, another very important point, which is the essence of 
this legislation, goes to the moratorium on exploration of the Outer 
Continental Shelf. This bill allows that moratorium

[[Page S1360]]

to stay in place until the year 2012. It allows coastal States to, 
either out of that moratorium, if they so choose, or if after that 
moratorium expires, to opt into continuing that moratorium. It gives 
States, legislatures, Governors, State officials, elected officials, et 
cetera, the ability to control some of the things that are going on on 
their coastlines.
  I think that is a very important point here because this could be a 
good revenue source for these States. It could be a good economic boom 
to some of these States. Certainly we have included revenue sharing, 
which I think is important to make this work.
  I am very pleased that Senator Warner and I have been able to work 
together and come up with what we think is a very commonsense solution, 
or at least part of a solution, to a very serious problem our country 
is facing.
  Arkansas farmers--and I am sure it is true with most other States' 
farmers as well--had a difficult and disastrous year last year when it 
came to agriculture. One of the main reasons it has been so hard is 
their costs have gone up--the high cost of fertilizer and fuel. They 
use a lot of natural gas when it comes to drying grain, et cetera. The 
high cost of energy is killing our farmers, and it is certainly hurting 
our manufacturing sector as well.
  The high price of natural gas is bad for the economy, but it is also 
bad for our energy security. That is one thing which I don't think we 
can overemphasize here today. I think it is critical that we have a 
high level of energy security for this country. I am proud to join my 
very distinguished colleague from Virginia to do our very best to offer 
a solution to help American families and help American businesses.
  I yield the floor.
  Mr. WARNER. Mr. President, our committee, under the leadership of 
Senator Domenici, is putting forward a proposal. I spoke with him 
today. This bill does not, in my judgment--and I hope he concurs 
eventually--conflict in any way with the objectives he is trying to 
achieve. He is a man who thinks forwardly and is so knowledgeable on 
the question of energy, the domestic situation here and the worldwide 
implication, and I think eventually he will be looking at something, 
and this may be a vehicle on which the Energy Committee will focus as 
they take the next step and begin to recognize the need to have some 
offshore drilling.
  I thank my colleague on the Energy Committee.
  I conclude my remarks by saying I am proud of the State of Virginia 
and its legislature. In the last session of the Virginia State 
legislature in the year 2005, both houses passed legislation 
authorizing precisely what we have here. In other words, let us go out 
and take a look at the shelf, find out what may or may not be off the 
coast of Virginia, and determine the accessibility and the feasibility 
and interest among industry to come and participate in the drilling.
  But, unfortunately our former Governor--and I get along very well 
with Governor Warner--for reasons which he expressed, felt at this time 
the legislation shouldn't go forward in this session of the Virginia 
General Assembly. Again, the Senate stepped forward and passed 
legislation along the lines of what the General Assembly of Virginia 
did last year. It is my hope the House will do likewise, and that our 
new Governor, Governor Kaine, will take it under consideration, should 
both houses act--and hopefully they will act upon it favorably. 
Virginia is in a key location, and its citizens could benefit 
enormously if in fact earlier analysis of the shelf off of our State is 
confirmed as possessing resources of energy, namely natural gas.
  I thank my colleague from Arkansas. He is a marvelous working 
partner. I look forward to working with him.
  I yield the floor.
                                 ______