Published: 07-02-08
Discusses need to boost U.S. energy production to reduce gas prices for Texas families business owners
DALLAS—U.S. Sen. John Cornyn R-Texas at a Dallas gas station on Tuesday called on Congress to act on new legislation to address record gas prices and provide a balanced approach to America’s long-term energy needs. Sen. Cornyn joined 43 Senate Republicans in introducing the Gas Price Reduction Act of 2008 S.3202 which allows for deep sea exploration in the Atlantic and Pacific and in western shale areas along with increased innovation.
“This new legislation is a balanced approach to help provide Texas families near-term relief from record gas prices and long-term energy security. Congress can pass many laws but we cannot repeal the law of supply and demand in the global marketplace. How high do gas prices have to rise before Congress will get out of the way and allow more American-made energy? This bill should be embraced by every member of Congress and acted on quickly so we can address this growing problem” Sen. Cornyn said.
Sen. Cornyn has been pushing for action in Congress on this critical issue but even as Texas families pay approximately $4 a gallon for gasoline heading into the July 4th holiday weekend some in Congress have repeatedly blocked initiatives to boost American energy production. Sen. Cornyn noted that we need to conserve and generate new technologies as we transition from fossil fuels to other sources such as wind nuclear and solar but in the meantime increasing American oil production could produce up to three million additional barrels a day.
“Opponents of producing more American-made energy are running out of excuses. I believe and most Texans agree that we need a balanced approach that combines more domestic production with innovation and alternatives sources which the government and private sector are already pursuing aggressively. This would also expand jobs in Texas which is a world leader in energy and reduce our dependence on dangerous foreign sources of oil. Our intention with this bill is to find common ground so we can move forward with real solutions now” Sen. Cornyn added.
In addition to supporting the Gas Price Reduction Act Sen. Cornyn and other members of the Senate Republican leadership team have attempted to pass the American Energy Production Act. That bill would have led to the estimated production of up to 24 billion new barrels of oil—enough oil to supply America for 5 years with no foreign imports. It would have also helped reduce gas prices in the near term by sending an important signal to the markets. Unfortunately the measure was defeated by some in Congress but Sen. Cornyn remains committed to working toward increased refinery capacity in the U.S. more domestic energy production and additional alternative energy sources.
THE GAS PRICE REDUCTION ACT OF 2008
Summary of Provisions
TITLE I – DEEP SEA EXPLORATION (Outer Continental Shelf - OCS)
14 Billion Barrels On Atlantic and Pacific OCS – More Than All US Imports From Persian Gulf Countries Over The Last 15 Years
• State Option Nationwide (except Gulf of Mexico)
• Governor petitions to allow exploration with concurrence of state legislature
• Exploration must be at least 50 miles from coast
• 50 percent of revenues to Federal Treasury 37.5 percent to States 12.5 percent to Land & Water Conservation Fund
TITLE II: WESTERN STATE OIL SHALE EXPLORATION
More Than 3 Times The Oil Reserves Of Saudi Arabia
• 800 billion - 2 trillion potentially recoverable barrels in Colorado Utah Wyoming
• Democrat Congress put moratorium on final regulations for development of this resource
• Republican proposal would repeal the moratorium and allow exploration to move forward
TITLE III: PLUG-IN ELECTRIC CARS AND TRUCKS
• We need better batteries to maximize electricity range & use less gas
• Increased R&D for advanced batteries
• Direct Loans for advanced battery manufacturing facilities
• Sense of Senate that the Federal Government should increase its purchases of these vehicles
TITLE IV: STRENGTHENING U.S. FUTURES MARKETS
• Authorize increased funding/staff for Commodities Futures Trading Commission (CFTC)
• Directs the President’s Working Group on Financial Markets to study the international regulation of commodities markets
• Codifies CFTC action on Position Limits and Transparency for Foreign Boards of Trade
• Requires the CFTC to Gather Information on Index Traders and Swap Dealers
In addition Sen. Cornyn is a co-sponsor of the American Energy Production Act (S.2958) and the Clean Energy Tax Stimulus Act (S.2181) to promote renewable energy production.
Click here for more information on Sen. Cornyn efforts to reduce gas prices and bolster America’s energy security visit http://cornyn.senate.gov/gasprices.
