Congressman Sandy Levin

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For Immediate Release
May 25, 2006
 
 
HOUSE GIVES GREEN LIGHT TO OIL DRILLING THAT DOES NOTHING TO LOWER GAS PRICES
 

(Washington D.C.)- Today, the House of Representatives approved legislation [H.R. 5429] opening the Arctic National Wildlife Refuge (ANWR) to oil drilling.  The House adopted the measure on a vote of 225 to 201, with U.S. Rep. Sander Levin (D-Royal Oak) opposing the legislation.  It is unclear whether the bill has enough support to pass the Senate.

Opponents of the bill underscored the fact that opening the Refuge to drilling would do nothing to bring down gasoline prices, since no Refuge oil would reach the market for at least ten years.  They also objected to rewarding the oil industry when oil companies are posting record profits.  In 2005 alone, the six largest oil companies recorded more than $111 billion in combined profits.  In the first three months of 2006, these same companies reported nearly $28 billion in profits.

Democrats attempted to add provisions to the bill to rein in royalty relief for oil companies.  These provisions would prevent the Interior Department from awarding leases in the Arctic Refuge to oil companies currently drilling in certain deepwater offshore areas of the United States -- in waters owned by all Americans -- without paying royalties.  Through an error in the leases negotiated between 1998 and 1999, oil companies have avoided billions of dollars of royalty payments.  Rep. Miller's provisions would serve as an incentive for these companies to re-negotiate the leases and pay a fair royalty to the American people.  However, the House rejected Rep. Miller?s effort on a vote of 201 to 223.

It is unclear whether the bill has enough support to pass the Senate.

Below is U.S. Rep. Levin's statement on the legislation:

"No one should be fooled by the inventive title of the legislation pending before the House today.  The sponsor of this measure calls his bill the 'American-Made Energy and Good Jobs Act.'  A better title would be the 'Big Oil Give-Away and Accountability Evasion Act.'

"The plain truth is that what we have here is an old proposal dressed up with a fancy, new title.  Since 1995, Congress has voted again and again on the question of whether or not to open up the Arctic Wildlife Refuge to oil drilling.  Just last December, the Alaska Delegation tried to force drilling in ANWR through the Congress by attaching it in the dead of night to a must-pass defense bill.  The Senate refused, and so here we are today debating yet another bill to turn the Arctic Refuge over to the oil companies. 

"Drilling in ANWR will not bring down gasoline prices -- not today and not tomorrow.  No one knows how much economically recoverable oil lies underneath the Refuge.  We do know that even if the Refuge were opened to oil exploration tomorrow, it would take nearly a decade for any Arctic Refuge oil to reach the market.  Even if the estimates of economically recoverable oil in ANWR panned out, oil from ANWR would account for only about 3 percent of domestic oil use in 2025. 

"Of the many actions we could be voting on today to help consumers at the pump, it speaks volumes that opening up the Refuge to oil drilling is the first choice of the Leadership of the House. 

"For the last six years, the Majority leadership and the President have set the energy policy for the United States.  The Bush Administration unveiled its energy plan in 2001.  Although over 95 percent of the recommendations in that plan have been implemented, our nation still confronts sky-high gas prices, growing dependence on foreign sources of energy, and record profits for the oil industry.  In 2005, the six largest oil companies reported $110 billion in profits.  These profits will likely set a new record this year.  The Majority's philosophy is that what?s good for Exxon-Mobile is good for American consumers, but we have learned that this is not the case. 

"So essentially what the House Leadership is offering the country is more of the same.  If they were serious about dealing with energy, the Majority would schedule a debate and a vote on H.R. 4479, the Energy Consumer Relief Act, which would roll back billions of dollars in tax breaks, royalty holidays and subsidies to oil and gas companies and make that funding available to bring down home heating costs through the LIHEAP program, as well as provide relief from high energy costs to farmers and small businesses. 

"Yesterday, Representative Visclosky sought to offer a far-sighted amendment to the Energy and Water bill to provide $750 million to move the United States towards energy independence.  This amendment would have made important investments in alternative energy, including ethanol and biofuels; renewable energy research and development, and energy efficiency.  Yet, the Majority blocked the House from even considering this proposal.

"I realize that the House will likely repeat its previous votes on this issue today, but I strongly encourage the House to take more meaningful action to deal with our country's energy problems soon."

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