[Congressional Record Volume 158, Number 30 (Monday, February 27, 2012)]
[Senate]
[Pages S1035-S1036]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
ENERGY PRICES
Ms. MURKOWSKI. Mr. President, I rise today to speak about what people
all across the country are talking about; that is, the high price of
energy, what people are paying at the pump. I just returned from a week
in Alaska. It is fair to say that in a State such as ours, that is as
rich as we are with energy wealth, we are being killed by energy
prices.
So I wanted to comment on some of the statements the President made
over the weekend and Friday when he spoke to the country about energy.
I have to tell you, I was pleased to hear the President say he is
joining us in an ``all-of-the-above approach'' to energy. I think that
is good news. It is certainly something I have been saying ever since I
arrived in the Senate.
It is about domestic production, it is about efficiencies and
conservation, and it is about renewables. So that is good. We heard the
President say we need to be doing more with oil and gas. You are not
going to find any disagreement with me. Wind and solar, nuclear,
biofuels, efficiency, this is all good, but the problem we are seeing
is the words coming from President Obama are not matching his actions
when it comes to what we can be doing with our own domestic production.
I will speak specifically to oil and gas. The actions coming out of
the administration, whether through this budget or through some of the
other proposals pushing for higher taxes, higher royalties on the
industry, when we think about what goes on with the oil and gas leases
in the gulf, we have certainly seen the impact flow down there.
In Alaska, we have been pushing, pushing aggressively for 4 years now
to get the OCS leases advanced through exploration with Shell, not only
4 years in the process but billions of dollars into a process. We are
getting closer, but we are not there yet. With the National Petroleum
Reserve Alaska, an area that has been designated by the Congress to
explore for production activity, it took almost 2 years to get a bridge
across the CD 5, an area where we have an opportunity to continue our
exploration--but 2 years to get a simple permit for a bridge.
We all know ANWR has been locked up for decades now. There is
incredibly wealthy potential there. Look at the decision on the
Keystone XL Pipeline coming out of this administration. When it comes
to other areas that are supposedly in ``all of the above,'' nuclear--as
much as we might have hoped that this was enjoying a renaissance, we
have seen the decision on the shutdown of Yucca Mountain from this
administration, the issues as they relate to access to uranium in
certain parts of the country.
The rhetoric is not necessarily matching what we are seeing coming
out of the administration. This is what is so disturbing to a person
like me who comes from an area where we have so much to give, so much
to offer.
The President, in his words, said, ``There are no quick fixes to this
problem.'' I agree. I absolutely agree. That is why instead of focusing
on what could be perceived as a quick fix, such as releasing oil from
the Strategic Petroleum Reserve, we need to be focusing on the long-
term solution. I keep going back to 1995 when the House and the Senate
passed ANWR. It was vetoed by the President shortly thereafter.
Prices at the pump back then were $1.07 at the pump. The average
price today is $3.65. Think about where we would be if that action had
not been vetoed; if the Alaska pipeline, which is now less than half
filled, were at full capacity with oil coming out of ANWR.
Just yesterday a colleague of ours from New York sent a letter to
Secretary Clinton asking her to pressure Saudi Arabia to pump more oil.
In his letter to the Secretary, he said,
I urge the State Department to work with the Government of
Saudi Arabia to increase its oil production, as they are
currently producing well under their capacity.
Well, our pipeline is certainly well under capacity at 600,000
barrels a day. When we were pushing it through at full tilt, we were
over 2 million barrels a day. That is exactly what the Senator from New
York has asked Saudi Arabia to do. We could be doing it from Alaska. We
could be doing it from this country with our people gaining access to
our resources, and we are not doing that.
The President said the Republican plan is just to drill, drill,
drill. He said: We hear this every year. Well, why do we hear this
every year? We hear it because it is part of the solution. It is not
the whole solution, but it is part of the solution, in addition to
conservation, efficiency, renewables, and other areas of our domestic
production. But drilling is part of the solution. It should not just be
part of the rhetoric.
The President said, and I would agree:
The American people are not stupid on this. They know that
we are not just going to be able to snap our fingers and have
oil coming out of ANWR or having oil coming out of the OCS in
the Chukchi or the Beaufort.
They know it takes a while. They know in some cases it might take
decades to come. So why would we not start now? If we had started in
1995, think about where we would have been.
He said, ``There are no short-term silver bullets.'' Once again, I
agree. But there is a long silver bullet in Alaska, and that is our
Trans-Alaska Pipeline that has been moving oil for 30 years now for
this country. That silver bullet could be filled, and it would be
helping this country just as we are asking for help from Saudi Arabia.
The statement that I think most upset me this weekend was the
statement that the President made when he said: Some politicians see
this--being higher oil prices--as a political opportunity. He repeated
a quote that ``Republicans are licking their chops,'' and stated,
``Only in politics do people root for bad news.''
Well, the people of my State are not rooting for bad news when it
comes to higher energy prices. I will tell you, I am a little offended
by the President's statement. I would invite him to come to Alaska,
spend a week with me, go to where I was last Saturday in Fairbanks
where people are paying $4.29 for their home heating oil. My sister
pays over $1,000 a month for home heating fuel to fill her tanks. She
lives within 20 minutes of the Trans-Alaska Pipeline. You can see it.
You can drive by it, this line that is half full, and it is not, again,
because we are running out of resources. It is because we have been
locked out of ANWR, we have been delayed on NPRA, and we are still
waiting on OCS. There are certainly plenty of leases out there. But it
is getting the permits out of this administration that has been holding
us back from doing more, from doing more to help the people of Alaska
and to help the people of this country.
Last month I was out in Bethel in southwest Alaska. There was a
native elder who came to a little gathering we had. He is from Eek, AK.
He was telling me that he pays $7.46 for home heating fuel in the
village of Eek. That is how they stay warm. When I was there in
January, the average temperature for that month was about 20 degrees
below zero. He said he has to buy his fuel 10 gallons at a time because
that is all he can afford. Then when he does not have any more money,
he goes out looking for fire wood for he and his wife. This gentleman,
as I said, is an elder, probably 70 years old. But that is how he is
living. High energy prices for him are not an opportunity.
Go up to Nome. All eyes of the Nation were on Nome several weeks back
when the Coast Guard cutter was escorting the Russian fuel tanker, the
Renda, to get to Nome to provide fuel for the community of Nome and the
surrounding villages because the winter ice had come in and the winter
barge had not been able to make it in with the fuel.
When I was in Nome that afternoon, the price for gas at the pump was
$5.43; the price for diesel was $5.99.
But it was projected that if they weren't able to fill their tanks,
they would see the prices go up to over $9 a gallon. Think of what that
does to your ability to live. Thankfully, the Coast Guard and the fine
men and women there were able to see that the community and the
villages were taken care of.
I was in Yakutat on Wednesday, a small community that is not
accessible by road, as most of our communities aren't. There in
Yakutat, they are paying 54 cents a kilowatt hour for energy. Most of
their power is diesel-generated
[[Page S1036]]
power--54 cents. That is for the businesses that get a subsidy from the
State of Alaska for 30 cents a kilowatt hour. The small grocery store
we visited paid $10,000 for its energy prices in January alone--$10,000
a month for a little grocery store. They are paying $5.19 a gallon
right now, but it is going up with the next fuel barge that comes in.
Alaskans in villages who rely on diesel for their power can pay
between 40 and 45 percent of their income for their energy costs.
Compare that to the rest of the country, where you are looking at
between 3 and 6 percent of your income going toward energy. We are
paying almost 50 percent in some of our villages.
Mr. President, I don't view high oil prices as a political
opportunity and neither do my constituents. What we view as an
opportunity is the resource our State holds--a resource that we
continue to be denied access to that opportunity. We learned late last
week that the USGS has come back with an estimate that the shale oil in
Alaska would come close to 2 billion barrels of oil. ANWR's estimate is
about 10.6 billion barrels. In the OCS, we anticipate over 26 billion
barrels of oil. We have the resources. We have the ability to access
the resources and to do so in an environmentally safe way. This needs
to be part of an all-of-the-above solution, in addition to everything
we do with renewables and our efficiencies and conservation. We must be
doing more domestically. Alaska holds the opportunity.
Again, I agree with the President that there is no short-term fix,
but if we don't get started today, there is not going to be a tomorrow
for communities such as Yakutat and Eek and Bethel and Fairbanks. We
have to get started today.
I yield the floor.
The ACTING PRESIDENT pro tempore. The Senator from Arizona is
recognized.
Mr. KYL. Mr. President, first let me commend my colleague from Alaska
who is seeing this battle of the high price of gasoline firsthand in a
State that could contribute greatly to the country's solution to the
problem if the President and administration would but let it. I was led
on a trip by her father several years ago to the northern part of
Alaska, where there are huge untapped reserves that literally, if they
had been allowed to be sent to the lower 48 at that time, could have
significantly ameliorated the problem we have today. I appreciate her
comments. We will talk more about that.
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