[Weekly Compilation of Presidential Documents Volume 44, Number 24 (Monday, June 23, 2008)]
[Pages 872-874]
[Online from the Government Publishing Office, www.gpo.gov]
<R04>
Remarks on Energy
June 18, 2008
Good morning. I want to thank Secretary Kempthorne and Secretary
Bodman for joining me here. For many Americans, there is no more
pressing concern than the price of gasoline. Truckers and farmers,
small-business owners have been hit especially hard. Every American who
drives to work, purchases food, or ships a product has felt the effect.
And families across our country are looking to Washington for a
response.
High oil prices are at the root of high gasoline prices; behind
those prices is the basic law of supply and demand. In recent years, the
world's demand for oil has grown dramatically. Meanwhile, the supply of
oil has grown much more slowly. As a result, oil prices have risen
sharply, and that increase has been reflected at American gasoline
pumps. Now much of the oil consumed in America comes from abroad--that's
what's changed dramatically over the last couple of decades. Some of
that energy comes from unstable regions and unfriendly regimes. This
makes us more vulnerable to supply shocks and price spikes beyond our
control, and that puts both our economy and our security at risk.
In the long run, the solution is to reduce demand for oil by
promoting alternative energy technologies. My administration has worked
with Congress to invest in gas-saving technologies like advanced
batteries and hydrogen fuel cells. We've mandated a large expansion in
the use of alternative fuels. We've raised fuel efficiency standards to
ambitious new levels. With all these steps, we are bringing America
closer to the day when we can end our addiction to oil, which will allow
us to become better stewards of the environment.
In the short run, the American economy will continue to rely largely
on oil. And that means we need to increase supply, especially here at
home. So my administration has repeatedly called on Congress to expand
domestic oil production. Unfortunately, Democrats on Capitol Hill have
rejected virtually every proposal, and now Americans are paying the
price at the pump for this obstruction. Congress must face a hard
reality: Unless Members are willing to accept gas prices at today's
painful levels--or even higher--our Nation must produce more oil. And we
must start now. So this morning, I ask Democratic congressional leaders
to move forward with four steps to expand American oil and gasoline
production.
First, we should expand American oil production by increasing access
to the Outer Continental Shelf, or OCS. Experts believe that the OCS
could produce about 18 billion barrels of oil. That would be enough to
match America's current oil production for almost 10 years. The problem
is that Congress has restricted access to key parts of the OCS
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since the early 1980s. Since then, advances in technology have made it
possible to conduct oil exploration in the OCS that is out of sight,
protects coral reefs and habitats, and protects against oil spills. With
these advances--and a dramatic increase in oil prices--congressional
restrictions on OCS exploration have become outdated and
counterproductive.
Republicans in Congress have proposed several promising bills that
would lift the legislative ban on oil exploration in the OCS. I call on
the House and the Senate to pass good legislation as soon as possible.
This legislation give--could get--should give the States the option of
opening up OCS resources off their shores, provide a way for the Federal
Government and States to share new leasing revenues, and ensure that our
environment is protected. There's also an executive prohibition on
exploration in the OCS. When Congress lifts the legislative ban, I will
lift the executive prohibition.
Second, we should expand oil production by tapping into the
extraordinary potential of oil shale. Oil shale is a type of rock that
can produce oil when exposed to heat or other process. One major
deposit--the Green River Basin of Colorado, Utah, and Wyoming--there
lies the equivalent of about 800 billion barrels of recoverable oil.
That's more than three times larger than the proven oil reserves of
Saudi Arabia. And it can be fully recovered--and if it can be fully
recovered, it would be equal to more than a century's worth of currently
projected oil imports.
For many years, the high cost of extracting oil from shale exceeded
the benefit. But today the calculus is changing. Companies have invested
in technology to make oil shale production more affordable and
efficient. And while the cost of extracting oil from shale is still more
than the cost of traditional production, it is also less than the
current market price of oil. This makes oil shale a highly promising
resource.
Unfortunately, Democrats in Congress are standing in the way of
further development. In last year's omnibus spending bill, Democratic
leaders inserted a provision blocking oil shale leasing on Federal
lands. That provision can be taken out as easily as it was slipped in,
and Congress should do so immediately.
Third, we should expand American oil production by permitting
exploration in the Arctic National Wildlife Refuge, or ANWR. When ANWR
was created in 1980, Congress specifically reserved a portion for energy
development. In 1995, Congress passed legislation allowing oil
production in the small fraction of ANWR's 19 million acres. With a
drilling footprint of less than 2,000 acres--less than one-tenth of 1
percent of this distant Alaskan terrain--America could produce an
estimated 10 billion barrels of oil. That is roughly the equivalent of
two decades of imported oil from Saudi Arabia. Yet my predecessor vetoed
this bill.
In the years since, the price of oil has increased seven-fold and
the price of American gasoline has more than tripled. Meanwhile,
scientists have developed innovative techniques to reach ANWR's oil with
virtually no impact on the land or local wildlife. I urge Members of
Congress to allow this remote region to bring enormous benefits to the
American people.
And finally, we need to expand and enhance our refining capacity.
Refineries are the critical link between crude oil and the gasoline and
diesel fuel that drivers put in their tanks. With recent changes in the
makeup of our fuel supply, upgrades in our refining capacity are
urgently needed. Yet it has been nearly 30 years since our Nation built
a new refinery, and lawsuits and red tape have made it extremely costly
to expand or modify existing refineries. The result is that America now
imports millions of barrels of fully refined gasoline from abroad. This
imposes needless costs on American consumers. It deprives American
workers of good jobs. And it needs to change.
So today I'm proposing measures to expedite the refining--refinery
permitting process. Under the reformed process that I propose,
challenges to refineries and other energy project permits must be
brought before the DC Circuit Court of Appeals within 60 days of the
issuance of a permit decision. Congress should also empower the
Secretary of Energy to establish binding deadlines for
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permit decisions, and to ensure that the various levels of approval
required in the refining--refinery permitting process are handled in a
timely way.
With these four steps, we will take pressure off gas prices over
time by expanding the amount of American-made oil and gasoline. We will
strengthen our national security by reducing our reliance on foreign
oil. We will benefit American workers by keeping our Nation competitive
in the global economy, and by creating good jobs in construction and
engineering and refine--refining, maintenance, and many other areas.
The proposals I've outlined will take years to have their full
impact. There is no excuse for delay--as a matter of fact, it's a reason
to move swiftly. I know the Democratic leaders have opposed some of
these policies in the past. Now that their opposition has helped drive
gas prices to record levels, I ask them to reconsider their positions.
If congressional leaders leave for the Fourth of July recess without
taking action, they will need to explain why $4 a gallon gasoline is not
enough incentive for them to act. And Americans will rightly ask how
high oil--how high gas prices have to rise before the Democratic-
controlled Congress will do something about it.
I know this is a trying time for our families, but our country has
faced similar strains before and we've overcome them together. And we
can do that again. With faith in the innovative spirit of our people and
a commitment to results in Washington, we will meet the energy
challenges we face and keep our economy the strongest, most vibrant, and
most hopeful in the world.
Thank you for your time.
Note: The President spoke at 10:30 a.m. in the Rose Garden at the White
House. The Office of the Press Secretary also released a Spanish
language transcript of these remarks.