While oil and gas industry giants are enjoying record profits and the Republican controlled Congress is pushing an irresponsible energy policy plan, the House Resources Subcommittee on Energy and Mineral Resources must closely monitor how the Administration’s budget translates into a national energy policy, said U.S. Rep. Raul Grijalva (D-AZ).
Grijalva is the new Ranking Democrat on the Energy and Mineral Resources Subcommittee, which has authority over energy and mineral resources on Federal lands.
The 2003 Energy Policy Conservation Act (EPCA) report, prepared by the Bureau of Land Management (BLM), indicates that 85 percent of oil resources, and 88 percent of natural gas resources -- 122.6 trillion cubic feet -- occurring on Federal lands in Colorado, New Mexico, Montana, Utah and Wyoming are available for leasing and development.
Only 12 percent of federal natural gas resources are off-limits to leasing. Yet the Administration’s budget and the scare tactics of the Republican led Congress demand the American public tolerate opening up even more Federal lands to drilling.
"The Administration’s budget priorities for energy and minerals programs clearly show they have chosen to maintain emphasis on opening Federal lands and waters to more oil and gas development and continue to downplay development of alternative energy sources on public lands like geothermal, solar and wind energy technologies," noted Grijalva.
According to a March 9, 2005 Wall Street Journal article, ‘Big Oil Makes Bet on Deepwater Gulf’, "Deepwater production in the Gulf is projected to grow by a third, to two million barrels of oil a day in 2007, an increase that constitutes about 18% of total non-OPEC oil-production growth for the next two years, according to data provided by Wood MacKenzie."
"It seems inconceivable that an across-the-board royalty holiday, as is being proposed in the energy bill, is in any way justified. Their approach to a national energy policy is disappointing because we are not going to drill our way into a rational, effective national energy policy," stated Grijalva.
He continued, "We should be focusing more on energy conservation, efficiency and technology in order to achieve any semblance of energy independence. The Administration, despite its prior statements to the contrary, continues to pay short shrift, especially in monetary terms, to facilitating or promoting alternative energy technologies and development on public lands."
One aspect of the Administration’s budget Grijalva finds encouraging is the need to charge major oil and gas corporations more to use our National resources. Their budget proposal generates $27 million in new and increased fees related to mineral development, including expanded permit processing fees for onshore minerals and a new permitting fee for outer continental shelf leases.
"These companies are being allowed to extract valuable energy resources from the public domain, and they should be asked to pay a just fee for that service. Raising these fees is long overdue," concluded Grijalva.