Walsh: National Emergency Demands That we Increase Domestic Energy Production to Provide Relief at the Gas Pump

Press Release

WALSH: NATIONAL EMERGENCY DEMANDS THAT WE INCREASE DOMESTIC ENERGY PRODUCTION TO PROVIDE RELIEF AT THE GAS PUMP

Congressman Jim Walsh today made the case that in order to lower skyrocketing gasoline prices and stem the tide of rising energy costs, America must increase domestic energy production by, in part, opening the Outer Continental Shelf (OCS) to energy exploration and allowing environmentally sensitive drilling in the Arctic National Wildlife Refuge (ANWR) in Alaska.

"For years I have argued that we should avoid offshore drilling and tapping into underground reserves in ANWR until there was an emergency that left us with no choice," said Walsh. "That time has come. We are most certainly heading toward a global energy crisis. We must explore all options while developing a comprehensive strategy to address this growing threat."

Estimates put the impact of bringing U.S. onshore and deepwater oil online at a savings of at least $1.75 per gallon of gasoline.

Walsh's plan to slow rising energy costs includes:

- Increasing the production of American-made energy in an environmentally-safe way, including the exploration of next generation oil and natural gas and the production of advanced alternative cellulosic fuel from natural resources like shrub willows and switch grass.

- Cutting red tape that hinders the expansion and construction of new oil refineries and easing bureaucratic regulations that mandate the use of special blend exotic boutique fuels that decrease supply and increase overall costs for minimal environmental benefit.

- Encouraging greater energy efficiency through increased Corporate Average Fuel (CAFÉ) Standards (increasing from 27 mpg to 35 mpg fleet wide), tax incentives for green construction and conservation upgrades, growing availability of hybrid and electric plug-in vehicles, and increased reliance on public transportation.

- Promoting and supporting new, clean, reliable sources of energy like wind, hydroelectric, and biofuels.

With average national gas prices hovering around $4 per gallon and daily global supply not meeting daily global demand, Walsh has agreed to support legislation opening up ANWR to controlled drilling. In late 2006, Walsh supported legislation to open up portions of the Outer Continental Shelf off the Gulf Coast to drilling to increase domestic supplies of crude oil, but that legislation was never passed into law. Walsh added that Congress must ensure that new energy reserves tapped in both ANWR and the OCS must be available only for domestic consumption.

On Wednesday, the Bureau of Land Management released a study that shows vast untapped oil and natural gas resources exist on public lands in the U.S. These public lands are estimated to contain 31 billion barrels of oil and 231 trillion cubic feet of natural gas. The inventory found that 60% of the onshore Federal lands that have potential as domestic sources for natural gas and oil are - like ANWR - presently closed to leasing.

The U.S. Minerals Management Service estimates that America's Outer Continental Shelf contains nearly 86 billion barrels of oil and 420 trillion cubic feet of natural gas, enough oil to replace our OPEC imports for more than 50 years and enough natural gas to supply all U.S. needs for 30 years.

Walsh has also been a longtime advocate and supporter of cellulosic ethanol research at SUNY Environmental Science and Forestry in Syracuse. Researchers at the college - supported by federal funding secured by Walsh since 1996 - have developed a process to derive ethanol from fast-growing shrub willows, which do not impact the cost of the food supply.

"Daily global production of oil is 85 million barrels a day while 87 million barrels are in demand," said Walsh. "Fears of severe shortage within five years have propelled long-term oil futures to previously unheard of prices, and industry analysts predict prices will reach $150 per barrel by the end of the year. If this Congress continues to fail to act and authorize new domestic exploration and production, new inflationary pressures will stoke our economy into a tailspin.

"The fact that not a single oil rig in the Gulf of Mexico failed in the wake of Hurricane Katrina, a category 5 storm, tells us that we can protect America's coastline and honor environmental concerns while tapping into vast offshore energy resources. Emerging technologies will also allow us to explore resources beneath ANWR with the most sensitive and environmentally-conscious footprint as possible," concluded Walsh.

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