Published: 05-02-08
American Energy Production Act would increase American oil and gas production bolster domestic jobs reduce dependence on foreign energy
WASHINGTON—U.S. Sen. John Cornyn R-Texas today joined several Republican Senate colleagues in introducing legislation aimed at addressing rising gas prices and strengthening America’s energy security.
The American Energy Production Act focuses on common sense measures that will increase production of oil and gas here at home. If enacted this new legislation would lead to the estimated production of up to 24 billion barrels of oil -- enough oil to supply America for 5 years with no foreign imports.
“It has been more than two years since House Speaker Pelosi and the Democratic majority in Congress first began promising the American people a ‘common sense’ solution to soaring gas prices” Sen. Cornyn said. “Since that time the average cost of a gallon of gas has risen from $2.33 to $3.62 and still the Democrats have failed to put forward a plan to address this problem.
Working families in Texas and across America who are now paying $1400 more a year in energy costs are paying the price for Congress’ inaction. They should not have to wait any longer. High gas prices touch every aspect of our daily life from airplane travel to driving children to school to food prices. This is an American problem and it needs an American solution.”
“High prices today are a direct result of increased demand worldwide and an oil supply that has struggled to keep up. The fastest and most effective way to combat this inadequate supply is to take advantage of the resources we have here at home” Sen. Cornyn said.
“This bill will go a long way to helping lower gas prices and bolster the American economy. Moving forward with new legislation to develop American energy production will show everyone that Congress is serious about finding energy solutions. This is a true ‘common sense’ plan and I hope the Democratic majority will embrace it because Americans cannot afford the price of inaction any longer.”
The legislation will strengthen domestic energy production by exploring in ANWR additional outer continental shelves shale areas and provide for increased refinery capacity.
Specifically the American Energy Production Act:
• Allows petitions for leasing activities in the Atlantic and Pacific regions of the Outer Continental Shelf in order to tap into the 14 billion barrels of known recoverable oil in this area.
• Establishes a competitive oil and gas leasing program for the Arctic National Wildlife Refuge Coastal Plain under the Mineral Leasing Act providing access to over 10 billion barrels of recoverable oil.
• Creates a revenue sharing agreement for participating states in which 37.5 percent of revenues will go to new producing states 12.5 percent to the Land and Water Conservation Fund and 50 percent to the Federal Treasury.
• Repeals the $4000 fee for new applications for permits to drill that was established in last year’s Omnibus Appropriations Bill.
• Suspends filling the Strategic Petroleum Reserve for 180 days.
• Repeals a provision in last year’s Omnibus which reduced mineral leasing revenue payments to States by 2 percent and restores the 50/50 Federal-State revenue sharing structure.
