Emanuel, Hinchey, Markey, Rahall to Introduce Legislation to Force Big Oil to Use Owned Leases
For Immediate Release
Contact:
Rep. Markey, 202-225-4081
Rep. Emanuel, 202-225-1400
Rep. Rahall, 202-226-9019
Rep. Hinchey, 202-225-6335
Emanuel, Hinchey, Markey, Rahall to Introduce Legislation to Force Big Oil to Use Owned Leases
WASHINGTON – House Democratic Caucus Chairman Rahm Emanuel, Rep. Maurice Hinchey, Chairman Edward J. Markey and Chairman Nick Rahall today announced plans to introduce legislation that will help lower gas prices by compelling oil companies to utilize the 68 million acres onshore and offshore that are being leased by big oil companies, but not used to produce energy. The members were also joined by Reps. John Yarmuth and Peter Welch.
Currently, oil companies are not producing oil or gas on the nearly 68 million acres of federal land already under their control. Offshore, big oil is producing on only about 20 percent of the acres they hold, while onshore, companies are producing on less than 30 percent of the acres they hold. These unused areas could produce an additional 4.8 million barrels of oil and 44.7 billion cubic feet of natural gas each day, nearly double current domestic oil production.
“With nearly 68 million acres of on-shore and off-shore public land already leased for oil and gas drilling untouched by the energy companies who hold those leases, it's time for Republicans and oil company executives to stop making the false claim that the U.S. is not making enough land available for energy production,” Hinchey said. “Oil corporations are trying to take control of as much land now during the oil-friendly Bush administration years, but are holding off on drilling until the price of oil soars to $200 or $300 a barrel so that they can make even greater profits. By stalling energy production, these major energy corporations are cheating the American people out of a domestic oil and natural gas supply, causing prices to unfairly and unnecessarily soar at the pump. The federal government has made tens of millions of acres available for oil and gas development. It's the energy companies that are refusing to produce and now we will make them pay if they continue to refuse to increase our domestic supply.”
Markey, Hinchey and Emanuel will introduce legislation that would assess a fee on land energy companies have leased but are not using for production. This fee will escalate if leases go unused over the course of several years. Revenue raised from these fees will go towards renewable energy and energy efficiency investments, as well as the Low Income Home Energy Assistance Program (LIHEAP). Chairman Rahall will also introduce legislation that employs a “use it or lose it” tactic that will compel oil and gas companies to either produce or give up the federal onshore and offshore leases they are stockpiling by barring the companies from obtaining any more leases unless they can demonstrate that they are producing oil and gas, or are diligently developing the leases they already hold.
“Big Oil, as many Americans already suspect, are perfectly fine with high gasoline prices at the pump, while they hold back domestic production on federal leases and enjoy world record profits. I am calling them on the carpet. I am calling their bluff. We are not going to continue to allow them to speculate and profiteer with public resources to the detriment of the American people,” said Rahall, Chairman of the House Natural Resources Committee.
“Big Oil seems more concerned with pumping up prices than pumping more oil,” said Markey. “When Big Oil already has tens of millions of acres available to them right now, it’s cynical of them to come to Congress and ask for more drilling territory. This is a drilling decoy. With gas prices increasing by the day, it’s time for Big Oil to produce or pay.”
“It's time for oil companies to use it or lose it,” added Emanuel. “These companies have access to millions of acres and there is nothing stopping Big Oil from using this land to produce energy.”
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