[Congressional Record Volume 154, Number 59 (Tuesday, April 15, 2008)]
[House]
[Page H2324]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
AMERICA'S DOMESTIC OIL SUPPLY CANNOT MEET ITS DEMAND
The SPEAKER pro tempore. Under a previous order of the House, the
gentleman from Texas (Mr. Poe) is recognized for 5 minutes.
Mr. POE. Madam Speaker, the price of gasoline goes up every day, and
Congress is partially to blame. The price of crude oil is increasing
because demand is increasing. Our domestic energy supply cannot meet
that demand. The global demand for oil is also rising with the
industrialization of China. And increased demand for oil leads to
increased prices for many products, including products made out of
plastic.
The problem is that Congress has made it difficult for our supply to
meet that demand. There is a solution to the problem. The solution is
to increase our supply by exploring domestic energy sources and
drilling in ANWR.
Like it or not, crude oil is still the energy base of our Nation.
Unlike every other country on the planet, the United States does not
take advantage of its own natural resources. When Congress abolished
tax credits for domestic exploration and production, Congress
effectively abolished reasonable oil prices and then raised taxes on
oil companies to $18 billion, taxes that are eventually passed on to
us, the consumer. Thus, higher prices at the pump.
And this Congress decided to even award Venezuelan Dictator Chavez
and his nationalized oil company with a large tax break, a tax break
they did not give to American oil companies.
It's common knowledge that, if you tax something, you're going to get
less of it. If you tax oil, you get less of it. Less of what? Less
production and less crude oil. Less oil on the market equals higher
prices at the pump. And if we look at the world crude oil reserves, 80
percent of the world crude oil is controlled by foreign nationalized
oil companies. We call them OPEC. Six percent is controlled by Russian
companies, and only six percent of the world oil reserves is controlled
by American-owned oil companies. You know, those American-owned oil
companies that are capitalistic, that have stockholders, we call them
Americans. And those companies are making about 8 percent, 8\1/2\
profit.
So the world is controlled by OPEC, not American oil companies. We
may be the world power, but the United States does not control the
world oil market.
The only control we have is over our domestic energy supply, which we
don't take advantage of because of the U.S. restrictions on offshore
drilling and exploration. We have succumbed to the environmental fear
myth that we cannot drill safely offshore. Other nations, including
Britain, Norway, Holland, and Denmark, take full advantage of their
natural resources and even permit offshore drilling in the North Sea,
that area of the world where offshore drilling is the most difficult,
and they do it without environmental damage.
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We can increase our energy supply and reduce the price of gasoline at
the pump by also allowing drilling in ANWR.
On top of the heightened demand for crude oil, there is a heightened
demand for new refineries. Madam Speaker, I represent 21 percent of the
Nation's refineries in southeast Texas, but we don't have any new ones.
The last oil refinery was built 32 years ago. Our oil refineries have
been punished by bureaucracy and unnecessary Federal regulations. Too
many unnecessary Federal regulations, too many government controls, too
many high taxes, the second highest corporate income tax in the world,
and what happens? They leave town, they go somewhere else. We must lift
these burdens and encourage refinery development. Our gasoline prices
will eventually drop as soon as we build new refineries and we drill
offshore and we drill in ANWR.
The high prices of gasoline have thrown the airline industry into
chaos. Twenty-two percent of the Nation's jet fuel is made in my
district. But one example, Madam Speaker, it costs an airline company
$44 a minute to allow a plane to idle on the runway. Thus, every plane
that takes off that's been sitting there about 30 minutes costs $1,500
in additional oil prices.
The high gas prices even affect the 170,000 independently owned gas
stations in the country. They no longer make a profit on selling fuel.
They hope to make one cent on every gallon, so they are thrilled if
they make that penny. They make money by selling lottery tickets,
donuts and beer, that's how they make their profit.
It's time for us in Congress to encourage more domestic oil
production, lift the restrictions to offshore drilling, and take care
of ourselves. We must stop relying on unstable, volatile regions in the
world and pompous dictators who hold Americans hostage with their crude
oil.
We have a problem, but we can solve it. Otherwise, we'll be parking
our vehicles on the side of the road, riding bicycles to work, then
blissfully wondering where all the crude oil went.
And that's just the way it is.
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