May 25, 2006

            “The volatility in the energy market and the spike in gasoline prices underscore the need to increase production of domestic energy sources,” Hall said.  “While this Congress is investing heavily in alternative and renewable fuels for America’s future energy security, our energy supply must be diverse.  In the short-term, we will continue to rely on oil and gas as our primary energy sources, and we need to increase domestic supplies to offer consumers some relief from high prices and help reduce our dependence on foreign energy.”

            The House bill authorizes an environmentally sound, competitive leasing program for oil and gas exploration and production in Alaska’s Arctic National Wildlife Refuge (ANWR).  Drilling would be permitted on about 1.5 million acres of some 20 million acres, with the total surface area covered by drilling and production facilities limited to 2,000 acres. 

            “Any oil or gas produced would be for domestic use only,” Hall noted.  “We are currently importing nearly 60 percent of the oil we use – from countries that we don’t necessary trust and that don’t trust us – and Americans are paying the price at the gasoline pumps.  This program will decrease oil imports, create thousands of new jobs, generate Federal revenue, and help drive down costs for consumers.”

            The House also resoundingly defeated an amendment this week during consideration of the Energy and Water Appropriations bill that would have eliminated the Ultra-deepwater and Unconventional Onshore research and development program (Ultradeep Program).   The vote was 161 to 255.

            The Ultradeep Program, which Hall introduced several years ago, was included in the Energy Policy Act of 2005.  This public benefits program is designed to develop technologies to drill in ultra-deep areas of the Gulf of Mexico and unconventional onshore areas.  The strongest supporters of the program are universities and small independent producers – not big oil.  The program pays for itself through funding from royalty revenues that oil and gas companies pay to the Federal government.

            “This program will help increase production of domestic energy sources and help reduce energy costs for Americans,” Hall noted.  The Energy Information Administration estimates that the Ultradeep Program will increase domestic oil production by 850 million barrels of oil and 3.8 trillion cubic feet of natural gas.

            Hall, chairman of the Energy and Air Quality Subcommittee, has held several hearings recently that focused on next-generation fuels, vehicles, and electricity generation.  “America’s future energy security will depend in large part on alternative fuel sources,” Hall said.