[Congressional Record Volume 157, Number 34 (Tuesday, March 8, 2011)]
[Senate]
[Pages S1338-S1339]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                            GASOLINE PRICES

  Mr. VITTER. Madam President, I rise to focus on another grave threat 
to our economic recovery and jobs: skyrocketing energy prices, and 
particularly the price of gasoline at the pump.
  Madam President, I don't have to point out to Americans all over the 
country, and Louisianans all over my State, because they see it in 
front of them every time they go get a new tank of gas, the ever-
increasing energy prices, the ever-increasing prices at the pump. Right 
now, on average, nationwide, the price at the pump is $3.51 a 
gallon. That is about 80 cents higher than the average price a year 
ago. Most Americans know it is not stopping there. They see $4 gasoline 
coming sooner rather than later, and who knows how far it will go 
beyond $4 at the pump?

  This is a real threat. We are trying to come out of the worst 
recession since the Great Depression and this is an immediate threat to 
put the brakes on any recovery we may be mounting, and it is surely a 
real threat and a real hit to Louisiana and American families. It is a 
direct hit to their pocketbooks.
  Louisianans, like all Americans, hear talking heads on TV, national 
economists, saying we don't have any real inflation. Listen, they are 
hit every time they go to the pump. They know there is inflation in key 
prices such as gasoline, and that is a big hit to their family budget.
  This has sparked somewhat of a breakthrough in thinking among the 
ranks of the Obama administration. Let me explain what I mean by that. 
Recently President Obama's Energy Secretary, Secretary Chu, focused on 
supply and he said we need to increase supply to temper prices and 
mitigate the increasing price at the pump. He said we need to do this 
by convincing the Saudi Arabians to increase their supply of oil on the 
world market: ``That's going to mitigate the price increase.'' He said 
further, ``We're hoping market forces will take care of this.'' I at 
least give Secretary Chu and the Obama administration marks for this 
breakthrough understanding that supply is a big part of the equation. 
In fact, it is half of the supply and demand equation that yields 
price.
  Recently the White House Chief of Staff Bill Daley made a comment 
that also went to supply. He said this weekend, on some of the weekend 
talk shows, that we need to consider opening the Strategic Petroleum 
Reserve to put more product on the market, to increase supply--also to 
temper prices, to stop these ever-increasing prices. Again, I at least 
give Mr. Daley and the Obama administration credit for finally 
realizing, and it is a bit of a breakthrough, that supply is a big part 
of the issue.
  Where I disagree, where I want a further breakthrough, is that they 
need to focus on domestic supply we can create and that we can control 
in America. Unfortunately, they are not doing that yet.
  I have come to the floor many times to talk about the virtual 
shutdown of the Gulf of Mexico to energy production since the BP 
disaster. I will mention that again because that is at the heart of 
this issue. The administration understands we need to increase supply. 
What about domestic supply? What about the Gulf of Mexico? What about 
all of our other vast energy resources that we are taking off the table 
and shutting down? What about that supply? That is the first place we 
should turn, that is the first action we should take. That is what can 
help us control our own destiny.
  Instead, there has been a virtual shutdown of the Gulf of Mexico to 
energy production. That has reduced direct and indirect employment in 
the oil and gas and service industries. It threatens 93,000 jobs for 
every year until 2035 unless we reverse it. It could

[[Page S1339]]

reduce an additional 82,000 jobs every year through 2035 in non-oil and 
gas-related industries that are still impacted indirectly by this 
shutdown.
  It reduces annual GDP by over $20 billion a year, a cumulative impact 
of $500 billion in the next 25 years, unless we immediately reverse 
course. It reduces long-term U.S. oil production by 27 percent. Long-
term U.S. foreign oil imports are increased by 19 percent. Groppe, Long 
& Littell estimates--that is a consulting firm--show that over 23 wells 
per month are needed to maintain current production levels in the 
shallow water of the Gulf of Mexico. Since the moratorium was lifted on 
shallow water drilling, the formal moratorium, the administration has 
only approved permits for new wells at a pace of 1.8 per month--so 23 
versus 1.8.
  In deep water it is even worse. There has been one deepwater 
exploratory permit issued since the BP disaster and only one, in 9 
months. As a result, six deepwater rigs have departed the gulf: 
Discovery America's Transocean has been moved to the Black Sea/
Mediterranean. Ocean Baroness of Diamond Offshore, a semisubmersible 
rig, has been moved to Brazil. Ocean Confidence, also with Diamond, has 
been moved to West Africa. Ocean Endeavor, also with Diamond, has moved 
to the Black Sea area. Stena Drilling has moved major equipment to 
Eastern Canada. Transocean has moved some of their equipment to West 
Africa. According to ODS, another five major rigs are scheduled to 
leave the U.S. Gulf of Mexico by April 1. So that will put that 6 
number up to 11. New well drilling has fallen from 20 in the first 
quarter of 2009 to 1 in the first quarter of 2010.
  Again, I applaud the administration's realization that supply is a 
big part of the issue; that we need to increase supply in order to stop 
these skyrocketing prices which are hurting Louisianans and Americans 
every day. But let's focus on domestic supply. Let's focus on the Gulf 
of Mexico. Let's focus on things we can directly control--not just 
begging the Saudi Arabians to increase their production. I want to 
create jobs here, not just in Saudi Arabia. I want our children to be 
independent, to control their own future, not to have to beg some Saudi 
Arabian prince.
  With regard to Mr. Daley's suggestion of opening the Strategic 
Petroleum Reserve, you know the Strategic Petroleum Reserve is just 
that. It is supposed to be strategic--for crises, for our security, our 
national security as a country. It is not the Salazar petroleum reserve 
to open, to cover up the complete ineptitude and foot dragging at the 
Interior Department in terms of issuing permits for our own drilling. 
So let's not play politics with the Strategic Petroleum Reserve, let's 
not treat it as the Salazar petroleum reserve, to cover up the mistakes 
and ineptitude and foot dragging of the Interior Department.
  Let's increase domestic production, let's address the supply side of 
the equation that way, aggressively, and create American jobs in the 
process. Louisianans are depending on that. Americans are depending on 
that--for jobs and to mitigate prices at the pump so we do not have 
these ever-increasing prices that could kill a recovery that we are 
hoping to mount and that could hurt every American's pocketbook, every 
American family's budget.
  I urge all of my colleagues, Democrats and Republicans, to come 
together on this point and urge the administration to act. Yes, they 
are right, supply is key. Let's start with domestic action, domestic 
supply, and mitigate price increases that way.
  I yield the floor.

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