GOP counters Obama on drilling

Sens. David VitterDavid Bruce VitterSenate confirms Trump judge who faced scrutiny over abortion views Collins votes against Trump judicial pick Progressive group targets Susan Collins over Trump judicial pick MORE (La.) and Tom CoburnThomas (Tom) Allen CoburnThe Hill's Morning Report — Presented by PhRMA — Worries grow about political violence as midterms approach President Trump’s war on federal waste American patients face too many hurdles in regard to health-care access MORE (Okla.) led the letter, which also includes signatures from some members of the GOP leadership team, including Senate Minority Whip Jon Kyl (Ariz.).

“Arbitrary federal land restrictions now serve as a primary roadblock to domestic energy production,” they write.

Republicans said production increases in recent years stem from Bush-era decisions, development on private and state lands (in areas including the Bakken formation in North Dakota) and technology advances.

Here’s the new Senate letter:

January 25, 2012

The Honorable Barack ObamaBarack Hussein Obama2020 Democrats mark 7th anniversary of DACA Aren't delirious Democrats now accusing Team Obama of treason? Trump won't say if he'd endorse Pence in 2024 MORE

President of United States


The White House


1600 Pennsylvania Avenue NW


Washington, DC 20500

Dear President Obama:

We write to convey our concern with the management of our nation’s abundant energy resources, particularly those located on federal lands and waters. 

There is a growing threat to consumers and our economy from the potential disruption in energy supplies stemming from the instability in the Middle East, particularly Iran. We believe the federal government should take commonsense steps here at home to safeguard Americans by removing the unnecessary obstacles placed in the way of energy development on lands and waters owned by taxpayers. Especially during a time of increasing volatility overseas and rising fuel prices, the single greatest impact the federal government can have on our nation’s energy security is to expand access to its vast energy resources — both traditional and alternative — available on federal lands and waters. While proven reserves have increased dramatically in recent years due to improvements in technology, energy production from federal resources has fallen. 

According to the U.S. Energy Information Administration (EIA), the United States relies on foreign countries for almost half of our petroleum resources, with a significant portion of that coming from unstable regimes. Additional analysis shows our economy will rely on fossil fuels for nearly 70 percent of its energy needs through 2035. While these facts are not disputed, the course of action to address it often is. Seeking to develop alternative energy technologies is a necessary goal in the long-term, but it is not sufficient for our nation’s current and foreseeable needs. 

Fortunately, our country holds within its borders extensive traditional energy resources that could sustain our energy needs for decades to come. According to a recent Congressional Research Service report, the United States’ combined recoverable oil, natural gas, and coal resources is the largest in the world. However, much of this is restricted from exploration and production. Hundreds of thousands of jobs and trillions of dollars in economic activity may be foregone if current policies remain in place.

The 1.76 billion acre endowment of our Outer Continental Shelf (OCS) is a good example. Of those 1.76 billion acres, only 38 million acres are actually leased to energy companies, meaning the federal government has provided access to a mere 2.16 percent of our total potential resources.  Yet, while the federal government has provided financing for other countries, such as Brazil, to develop offshore resources, it has consistently restricted companies from doing the same within U.S. waters.

Moreover, as a result of the 2010 moratorium and uncertainty about future permitting, 11 drilling rigs representing 14 projects have left the Gulf of Mexico since April 2010. These rigs have gone to countries such as Brazil, Egypt and Angola with some rigs later relocating to the North Sea — taking a cumulative $21.4 billion of associated lost U.S. capital and operating investment with them. In addition, the EIA projects that Gulf oil production will be down more than 12 percent in 2012 over 2010. 

In 2007, the EIA projected total 2010 U.S. oil production on federal lands to be 850 million barrels. Today’s actual production on federal lands is 714 million barrels, a 16 percent decline from what was projected. Arbitrary federal land restrictions now serve as a primary roadblock to domestic energy production. Federal land designations now exceed the total amount of developed lands in the United States. Wilderness areas, the most restrictive of land designations, total over 100 million acres. In many cases, wilderness areas are now used for purposes beyond their original intent on lands clearly unsuitable for the designation rather than maintaining the integrity of our most sensitive public lands. These restrictions, which are rich in resources, prevent the responsible development of natural resources. 

Information developed by the Western Energy Alliance shows an unfortunate regression in federal policy, specifically at the Department of Interior. Their analysis shows that the ratio of revenue returned per dollar spent by the federal government has fallen from $46.07 to $40.12 for onshore energy production, and an unprecedented falloff of $118.54 to $30.08 for offshore energy production over the last three years.

This is in sharp contrast to production occurring on non-federal lands. For example, since 2005 oil production in North Dakota has been growing at a rate of 26 percent a year. Thus it is increasingly clear our nation is reliant on foreign sources of oil, largely because we do not first access our own.  Utilizing our nation’s natural resources located on federal lands could create American jobs, produce American energy resources, reduce our foreign imports and trade deficit, keep more of our nation’s wealth at home, and protect our national security interests.  
         


Needless to say, reducing restrictions to access our federally managed lands would allow American industry the freedom to develop abundant traditional energy reserves. Additionally, it would provide a more realistic economic environment for emerging alternative energy technologies, allowing them to be developed according to true market conditions. This approach could weed out faltering technologies and spare taxpayers the risk of subsidizing wasteful projects, as we experienced with Solyndra. 

Finally, let us be clear in our disappointment in the recent decision to not approve the Keystone XL pipeline project, which is clearly in our national interest. Considering the potential for supply disruptions in the coming year, the federal government could well be facing price constraints that are a result of international conflicts, for example, in the Strait of Hormuz. It would be unfortunate if the only tool available to calm markets is further sales from our strategic reserves. Providing more access to both onshore and offshore resources and construction of a strategic pipeline from Canada are clear ways forward. We urge you to re-consider this decision and provide a clear path forward for increasing domestic production and transporting new energy supplies. 

Sincerely,
David Vitter                                                    


Tom Coburn


Jim InhofeJames (Jim) Mountain InhofeSenate rejects effort to block Trump's Qatar, Bahrain arms sales Senate rejects effort to block Trump's Qatar, Bahrain arms sales Shanahan: 'No concerns' about FBI background check for nomination MORE

Mike LeeMichael (Mike) Shumway LeeOvernight Defense: Latest on House defense bill markup | Air Force One, low-yield nukes spark debate | House Dems introduce resolutions blocking Saudi arms sales | Trump to send 1,000 troops to Poland Overnight Defense: Latest on House defense bill markup | Air Force One, low-yield nukes spark debate | House Dems introduce resolutions blocking Saudi arms sales | Trump to send 1,000 troops to Poland Senators clinch votes to rebuke Trump on Saudi arms sale MORE

Jeff SessionsJefferson (Jeff) Beauregard SessionsSarah Sanders to leave White House Sarah Sanders to leave White House Barr compares his return to DOJ to D-Day invasion MORE

Richard Shelby


Richard BurrRichard Mauze BurrElection security bills face GOP buzzsaw Election security bills face GOP buzzsaw Tillis dodges primary challenge in NC MORE

Ron JohnsonRonald (Ron) Harold JohnsonHillicon Valley: Lawmakers angered over Border Patrol breach | Senate Dems press FBI over Russian hacking response | Emails reportedly show Zuckerberg knew of Facebook's privacy issues | FCC looks to improve broadband mapping Hillicon Valley: Lawmakers angered over Border Patrol breach | Senate Dems press FBI over Russian hacking response | Emails reportedly show Zuckerberg knew of Facebook's privacy issues | FCC looks to improve broadband mapping Lawmakers demand answers on Border Patrol data breach MORE

Jim DeMint

Dean HellerDean Arthur HellerThis week: Barr back in hot seat over Mueller report Trump suggests Heller lost reelection bid because he was 'hostile' during 2016 presidential campaign Trump picks ex-oil lobbyist David Bernhardt for Interior secretary MORE

John ThuneJohn Randolph ThuneTrump's border funding comes back from the dead Public policy expert: US has become 'outlier' on immigration practices Public policy expert: US has become 'outlier' on immigration practices MORE

Saxby ChamblissClarence (Saxby) Saxby ChamblissRepublicans say Democrats holding up disaster relief as 'Sandy payback' Ex-House Intel chair: Intel panel is wrong forum to investigate Trump's finances The Hill's Morning Report - Trump budget reignites border security fight MORE

Orrin HatchOrrin Grant HatchTrump to award Medal of Freedom to economist Arthur Laffer Trump gambles in push for drug import proposal Biden's role in Anita Hill hearings defended by witness not allowed to testify MORE

Roy BluntRoy Dean BluntElection security bills face GOP buzzsaw Election security bills face GOP buzzsaw McConnell ups pressure on White House to get a budget deal MORE

Marco RubioMarco Antonio RubioElection security bills face GOP buzzsaw Election security bills face GOP buzzsaw The Hill's Morning Report — Uproar after Trump's defense of foreign dirt on candidates MORE

Roger WickerRoger Frederick WickerHillicon Valley: Democratic state AGs sue to block T-Mobile-Sprint merger | House kicks off tech antitrust probe | Maine law shakes up privacy debate | Senators ask McConnell to bring net neutrality to a vote Hillicon Valley: Democratic state AGs sue to block T-Mobile-Sprint merger | House kicks off tech antitrust probe | Maine law shakes up privacy debate | Senators ask McConnell to bring net neutrality to a vote Lawmakers demand answers on Border Patrol data breach MORE

John McCainJohn Sidney McCain#JohnMcCainDay trends on Trump's 73rd birthday #JohnMcCainDay trends on Trump's 73rd birthday New poll finds little GOP support for spending cuts to specific federal programs MORE

Thad CochranWilliam (Thad) Thad CochranThe Hill's Morning Report — Trump turns the page back to Mueller probe Trump praises Thad Cochran: 'A real senator with incredible values' The Hill's 12:30 Report: Trump, Democrats deal with Mueller fallout MORE

Rand PaulRandal (Rand) Howard PaulOvernight Defense: Pompeo blames Iran for oil tanker attacks | House panel approves 3B defense bill | Trump shares designs for red, white and blue Air Force One Senate rejects effort to block Trump's Qatar, Bahrain arms sales Senate rejects effort to block Trump's Qatar, Bahrain arms sales MORE

John CornynJohn CornynTrump puts GOP in tough spot with remarks on foreign 'dirt' Trump puts GOP in tough spot with remarks on foreign 'dirt' Overnight Health Care: Pelosi to change drug-pricing plan after complaints | 2020 Democrats to attend Planned Parenthood abortion forum | House holds first major 'Medicare for All' hearing MORE

Kay Bailey Hutchison


Jon Kyl