Statements on Introduced Bills and Joint Resolutions

Floor Speech

Date: Feb. 12, 2015
Location: Washington, DC
Issues: Oil and Gas

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Ms. MURKOWSKI. Mr. President, I rise, along with my colleague Senator Sullivan, to introduce a bill to open a small portion of the arctic coastal plain, in my home State of Alaska, to oil and gas development. I am introducing this bill today because I strongly believe that whether oil and gas exploration should be conducted on a small portion of the coastal plain is a question for Congress; not one for unilateral action by Federal agency.

The 1.5 million acres of the Arctic coastal plain that lie within the non-wilderness portion of the 19 million acre Arctic National Wildlife Refuge are North America's greatest prospect for conventional onshore production. When Prudhoe Bay, the largest conventional oil field in North America and one of the 20 largest fields in the world was discovered in 1968, estimates at the time projected 9.6 billion barrels of oil would be recovered. The U.S. Geological Survey continues to estimate that this part of the coastal plain has a mean likelihood of containing 10.4 billion barrels of oil and 8.6 trillion cubic feet of natural gas, as well as a reasonable chance of economically producing 16 billion barrels of oil. With potential comparable to Prudhoe Bay, the coastal plain represents an opportunity to ensure the American energy renaissance continues and our domestic energy security is bolstered for decades to come.

Alaska used to provide that foundation for our country. At its peak in 1988, Alaska provided nearly 25 percent of America's domestic production. Today it represents barely 6 percent. Importantly, despite the Federal government owning almost 70 percent of the lands in Alaska, almost all of our oil production is from State lands. The people of Alaska are doing everything they can to contribute to America's energy security by promoting production from State lands. In the past two years the State of Alaska has passed oil tax reforms, improved State permitting and provided more than $1.2 billion in State tax credits to support the exploration and development of oil from State lands. The only production on federal estate comes from the Northstar project, a small man-made island that straddles state and federal waters in the Beaufort Sea.

For more than 30 years, my State has successfully balanced resource development with environmental protection. Alaskans have proven, over and over again, that these endeavors are not mutually exclusive, and with advances in technology, the footprint of development projects is only getting smaller. Yet as the Federal level, there is an astonishing refusal to acknowledge the record.

With new exploration and development projects on Federal lands stalled or outright blocked, Alaska faces a tipping point. The Trans-Alaska Pipeline System, an engineering marvel that has served as one of America's great energy arteries for decades is facing more and more challenges from lower throughput. A closure of TAPS would shut down all northern Alaska oil production, devastating Alaska's economy and deepening our dependence on unstable petrostates throughout the world. Exploration and development in the Arctic offshore and National Petroleum Reserve Alaska depend on the long-term viability of the Trans-Alaska Pipeline System.

The bill I introduce today, would disturb no more than 2,000 acres of the vast coastal plain. To put this in perspective, 2,000 acres is less than 1/6 the size of the local Dulles Airport, or about \1/10\ of 1 percent of the refuge. Since these areas are less than 60 miles from TAPS, development in the Coastal Plain is the quickest, most environmentally sound way to increase oil production in Alaska and ensure the pipeline will operate well into the future, providing jobs and supporting the economies of both Alaska and the United States.

The bill includes strong protection for fish and wildlife, fish and wildlife habitat, subsistence resources, and the environment. Development would not move forward if it would cause significant adverse impacts to the coastal plain. The bill also ensures these protections are strong because it provides for strict consultation with the residents of the coastal plain; the City of Kaktovik as well as the regional government, the North Slope Borough. The bill also provides important impact aid to the local communities from the State's share of revenues due to it under the Mineral Leasing Act and Alaska's Statehood Act.

As we continue to struggle with long-term unemployment, and an unsustainable national debt, we need to pursue development opportunities more than ever. The shale oil and gas boom on 2 state and private lands in the Lower 48 has been the shining light as our economy struggles to recover from the recession. My bill offers us a chance to produce more of our own energy, for the good of the American people, in an environmentally-friendly way and with the meaningful impact of the local people.

For decades, Alaskans, whom polls show overwhelmingly support development of the coastal plain, have been asking permission to explore and develop the resources located there. Consistent with the Alaska National Interest Lands Conservation Act, ANILCA, the state of Alaska recently submitted a plan to the U.S. Fish and Wildlife Service to conduct minimal exploration activities in the coastal plain and was rejected. Despite the fact that the State was in court presenting its case, the U.S. Fish and Wildlife Service released an updated Plan for the Arctic National Wildlife Refuge that puts areas like the Coastal Plain in de facto wilderness status as Wilderness Study Areas.

The U.S. Fish and Wildlife Service states that they did not consider an oil and gas alternative, as requested by the State of Alaska, North Slope Borough, various Alaska Native Regional and Village Corporations as well as a broad spectrum of Alaskans, because they stated that the decision to conduct oil and gas development is one for Congress to make. I hope this Congress will rise to that challenge and have the common sense to allow America to help itself by developing a small portion of the coastal plain. This is critical to my State and the nation as a whole and one more step we can take to push back against the unilateral executive actions that are threatening our economy and very system of government.

With this in mind, Senator Sullivan and I will work to educate members of this chamber about the opportunity we have and the tremendous benefits it would provide. We will show why such development should occur--why it must occur--and how it can benefit all of us and help secure our energy security for decades to come.

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