Published: 05-08-08
American Energy Production Act would produce up to 24 billion barrels of new oil if enacted
WASHINGTON—U.S. Sen. John Cornyn R-Texas reiterated today that Texans cannot afford further delay on addressing high gas costs and voiced support for the effort by Senate Republican Leader Mitch McConnell R-Ky to force the Senate to debate new energy legislation. McConnell backed by Cornyn and other Senate Republicans introduced the American Energy Production Act S. 2958 as an amendment today to separate legislation currently before the Senate.
If enacted the 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 was introduced last week as a stand-alone bill by Sen. Cornyn and his colleagues.
“More than two years ago – 744 days to be exact – House Speaker Nancy Pelosi and the Democrats promised a common sense solution to address rising gas prices” Sen. Cornyn said. “Since that time gasoline prices have reached all-time highs. The time to act is now and that’s exactly what we are doing. This legislation would increase oil and gas production in America boost refinery capacity in America and allow energy exploration in ANWR and the Outer Continental Shelf. This is an important start to lowering gas prices.”
“The Democratic majority in the Senate now has a decision to make – will they continue to ignore the pleas of Americans struggling with high prices at the pump or will they work with Senate Republicans to find solutions to this situation. I hope they will join with us in passing this amendment” Sen. Cornyn concluded.
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.
Sen. Cornyn serves on the Armed Services Judiciary and Budget Committees. In addition he is Vice Chairman of the Senate Select Committee on Ethics. He serves as the top Republican on the Judiciary Committee’s Immigration Border Security and Refugees subcommittee and the Armed Services Committee’s Airland subcommittee. He served previously as Texas Attorney General Texas Supreme Court Justice and Bexar County District Judge.
