“THE DOMESTIC OIL AND GAS PRODUCTION AND PRESERVATION ACT” published by Congressional Record on Feb. 16, 1995

“THE DOMESTIC OIL AND GAS PRODUCTION AND PRESERVATION ACT” published by Congressional Record on Feb. 16, 1995

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Volume 141, No. 31 covering the 1st Session of the 104th Congress (1995 - 1996) was published by the Congressional Record.

The Congressional Record is a unique source of public documentation. It started in 1873, documenting nearly all the major and minor policies being discussed and debated.

“THE DOMESTIC OIL AND GAS PRODUCTION AND PRESERVATION ACT” mentioning the U.S. Dept. of Commerce was published in the Extensions of Remarks section on pages E381-E382 on Feb. 16, 1995.

The publication is reproduced in full below:

THE DOMESTIC OIL AND GAS PRODUCTION AND PRESERVATION ACT

______

HON. FRANK D. LUCAS

of oklahoma

in the house of representatives

Thursday, February 16, 1995

Mr. LUCAS. Mr. Speaker, today I rise to bring my colleagues' attention to a growing threat to our national security--our increased reliance on foreign oil. Last year, for the first time in the history of our Nation, we imported over half the oil that we consumed. By the year 2010, the Department of Energy [DOE] estimates that imports could makeup as much as 60 percent of our Nation's petroleum needs.

While imports are rising, U.S. oil production is on a drastic decline. Crude oil production in 1994 averaged 6.6 million barrels per day, in comparison to the 6.8 million barrels per day in 1993--this represents one of the lowest oil production levels in the history of our country. Oil prices continue to fluctuate and natural gas prices are on a steady decline.

The truth is, that it's just plain tough for domestic oil and gas producers to operate in today's market. The cost of operation, high taxes, and costly environmental regulations make it difficult to continue to drill for oil and gas. It's time for us to start paying attention and provide some relief and incentives for the American energy industry. Everyone talks a good game about ``America first''* *

*buy American products* * *hire American labor* * *and I agree. But, those same people don't seem to have a problem pouring foreign gasoline in our American cars.

Earlier today I, along with Representatives Coburn, Brewster, Istook, Largent, and Watts, introduced a plan that would help boost domestic production and lessen our reliance on foreign oil. The Domestic Oil and Gas Production and Preservation Act, would provide tax incentives for new and marginal well production; relief from burdensome Federal regulations; and would abolish existing bans on the export of U.S. crude oil. This bill will put people back to work, boost revenues, and help make the domestic oil and gas industry more competitive in world markets.

According to a recent investigation conducted by the U.S. Department of Commerce, this bill is needed now more than ever. The Commerce investigation, conducted under the Trade Expansion Act, apparently determined that increased oil imports could impair the national security of the United States. The Trade Expansion Act requires the President to respond to the report within 90 days of the Commerce Department's findings. It is imperative that Congress and the President take action to alleviate this threat to our national security.

Many of my colleagues will turn a blind eye to this report. However, I believe it is a warning signal that we must not ignore. This is not just an oil State problem, the energy crisis is a national concern that everyone should be worried about.

U.S. marginal wells--or low-income wells--are particularly at risk. Most people don't understand that each time a marginal well is plugged, jobs are lost and we increase our reliance on foreign oil and run the risk of losing one of our Nation's natural resources forever. Plugging a well is like shutting down a small

[[Page E382]] business. When we plug marginal wells, we also lose jobs in our communities back home. Plugging a well is permanent. The only way to recover these resources is to drill a new well, which is extremely costly.

Nationally, we plug a marginal well every 30 minutes. In Oklahoma, we plug eight marginal wells per day. In 1993, the State of Oklahoma had over 70,000 marginal wells in operation. The same year, nearly 1,356 marginal wells were abandoned. As a result, my State of Oklahoma lost nearly $20 million in gross revenues.

This bleak situation has forced businesses to close, imperiled thousands of jobs, and caused States to lose large amounts of production and income taxes. Over the last decade, this country has lost nearly 500,000 jobs as a result of low domestic oil and gas productivity.

It's time for the U.S. Government to open its eyes and support a plan to help restore our domestic industry. I believe that the bill we introduced today marks the first step in this plan. It will help stop the abandonment of wells, pump revenues back into State and Federal budgets, and preserve our Nation's natural resources.

It is in the best interest of our country to support this bill and protect our Nation's oil supplies. It would be one of our Nation's darkest days should we awaken to find ourselves with a depleted oil supply, leaving us totally at the mercy of the world's unstable oil producing nations. Our Nation's oil and gas supplies are a national treasure that must be preserved and maintained. I look forward to working with my colleagues and I urge them to support this critical legislation.

____________________

SOURCE: Congressional Record Vol. 141, No. 31

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