Gulf of Mexico Energy Security Act of 2006 - Motion to Proceed - Continued
GULF OF MEXICO ENERGY SECURITY ACT OF 2006--MOTION TO PROCEED--Continued -- (Senate - July 26, 2006)
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Mr. COCHRAN. Mr. President, I am pleased to be a cosponsor of the Gulf of Mexico Energy Security Act. The legislation will expedite oil and gas production in areas that are at least 100 miles from the coastlines of Gulf Coast States and will enable our Nation to reduce our dependence on foreign sources of energy. This will improve our national economy and help increase job opportunities for American citizens across the country. It also authorizes the sharing of 37.5 percent of the revenue from new production of oil and gas in the Gulf of Mexico with the States of Alabama, Mississippi, Louisiana, and Texas.
Mr. President, 12.5 percent of the revenue from this production will be shared with all States through the Land and Water Conservation Fund. The sharing of revenue with States is consistent with the way other areas of the country have benefited from oil and gas production, such as the western Rocky Mountain region, where 50 percent of oil and gas revenue goes to the producing States.
The Congressional Budget Office estimates that this legislation will reduce Federal spending by $900 million over the 2008 through 2016 period. It increases domestic energy production and saves the Federal Government money.
The legislation will open 8.3 million acres to production on the Outer Continental Shelf, and it will do it responsibly. The offshore program will be conducted under Federal environmental mandates, including the Outer Continental Shelf Lands Act and the National Environmental Policy Act.
As unrest in the Middle East continues, the development of an uninterrupted supply of domestic energy becomes more and more important to our national interests. Our economic security depends on it. At the present time, 37 percent of our petroleum comes from the Middle East or Africa. This legislation will reduce our dependence on these foreign sources of oil and gas.
American families and businesses feel the impact of increasing energy costs every day. As gasoline prices rise, the heating and cooling of homes becomes more and more costly. The new supply of natural gas which will be made available by the Gulf of Mexico Security Act is enough to heat and cool nearly 6 million homes for 15 years.
Small businesses are strained by unexpected increases in the cost of energy. As the cost of raw materials and fuel rise due to supply not meeting demand, the cost of production and transport of goods is passed on to consumers. Disruptions in our supply mean higher prices, lower productivity, and ultimately the loss of jobs--especially in small and medium size businesses.
American manufacturers face intense competition from foreign companies who have an energy cost advantage. Increased domestic supplies of natural gas would assist our Nation's industries whose competitiveness relies on natural gas as a raw material. The U.S. agricultural industry, for instance, has been facing a natural gas crisis since 1999. Farmers across the country use natural gas for food processing, irrigation, and in the production of crop-protection chemicals and fertilizers. The U.S. fertilizer industry estimates that in the 1990s, 85 percent of its domestic needs were supplied through U.S.-based production. But today, this industry relies on imports for more than 50 percent of natural gas supplies. This adversely affects businesses such as Terra Industries in Yazoo City, MS, which produces nitrogen fertilizer and relies heavily on natural gas as a feedstock.
We must act now to take advantage, in an environmentally acceptable way, of our national resources in the Gulf of Mexico. This legislation will do just that. It is estimated that this legislation will provide us with 5.8 trillion cubic feet of gas and 1.26 billion barrels of oil. The process to begin extracting those resources could begin almost immediately upon the enactment of this legislation.
I compliment the distinguished Senator from New Mexico, Mr. Domenici, the chairman of the Energy Committee, for his leadership in bringing this bill to the floor of the Senate. The Gulf of Mexico Energy Security Act is a step in the right direction and will benefit our entire Nation. I encourage its adoption by the Senate.
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