[Congressional Record (Bound Edition), Volume 155 (2009), Part 17]
[Senate]
[Pages 22734-22735]
[From the U.S. Government Publishing Office, www.gpo.gov]




                ENERGY SECURITY THROUGH TRANSPARENCY ACT

  Mr. CARDIN. Mr. President, I rise today to discuss a bill that will 
increase energy security and combat poverty through greater 
transparency in the oil, gas and mining industries.
  This week, Senator Lugar and I, along with Senators Schumer, Wicker 
and Feingold, introduced the Energy Security Through Transparency Act. 
This legislation will require all companies listed on U.S. exchanges to 
disclose their payments to foreign governments for the extraction of 
oil, gas and minerals on a country-by-country basis. This disclosure 
would apply to all companies that file with the Securities and Exchange 
Commission, SEC, regardless of where they are based, and would be added 
to existing SEC requirements.
  This legislation will set a new international standard for corporate 
and State behavior.
  With this bill, we are changing the paradigm within the world's oil, 
gas and mining companies operate, and, importantly, changing the nature 
of their relationship with the governments in the countries in which 
they operate.

[[Page 22735]]

  This is critical to our energy security, our national security and 
for the welfare of the citizens of these countries.
  When we look at countries situated on oil and natural gas reserves, 
we think these countries have won the global version of the economic 
lottery. But what economists have found by studying these resource-rich 
countries is that they often fare worse than their resource-poor 
neighbors, both economically and politically.
  In these countries rich in natural resources, governments do not 
provide the most basic of information concerning natural resource 
revenues. This lack of transparency facilitates and even encourages 
corruption. This often leads to grinding poverty in countries that are 
paradoxically rich in natural resources.
  This legislation will provide much-needed regulatory and legal 
support to existing initiatives such as the Extractive Industries 
Transparency Initiative, EITI, and Publish What You Pay.
  It is critical that the United States lead by example on 
transparency. That is why this legislation also encourages the United 
States to become an implementing country under EITI.
  U.S. implementation of EITI would have practical and symbolic value 
on a number of fronts.
  While this legislation puts human rights front and center in the 
global energy discussion, it also empowers people to fight corruption 
and hold their governments accountable. Greater transparency will lead 
to greater stability in countries that benefit from their natural 
resources and will lessen volatility in the global energy market, 
making them more conducive for long-term investments.
  Just as importantly, U.S. implementation would bolster the momentum 
for the EITI, helping to make it a truly global standard for 
transparency in extractive industries. Leading by example is one of the 
most powerful ways the U.S. can encourage other countries to sign on to 
the initiative.
  I look forward to working with our colleagues to ensure passage of 
this important and timely legislation.

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