Dear
Thank you for contacting me in regard to America's energy needs. I appreciate hearing from you and I welcome the chance to respond.
When talking with people here in Missouri, I repeatedly hear about the pain at the pump. I, like you, grimace every time I fill up my gas tank.
In order to address this energy crisis, we need to fundamentally change the way America powers itself. While the United States has almost 3 percent of the world's oil reserves, we use 24 percent of the world's oil. We have more oil wells than any other country on Earth. And no matter how many more we drill, we will never again pump as much as we did during the1970s. In fact, our oil production peaked around 1970. Since 2000, the number of wells drilled on land has climbed about 66 percent - from 3,000 to nearly 5,000 - while the price of gasoline has more than doubled since 2001. Even self-described oilman, T. Boone Pickens said, "This is one emergency we can't drill our way out of." I agree with this statement, and believe that we must address the root of the problem - America's addiction to oil. With high gas prices crippling the American economy, this country needs a long-term energy plan to lower gas prices, make American more secure, create green jobs, and combat climate change.
While I am not against domestic drilling, I am against giving oil and gas companies more drilling rights, whether in ANWR, on the Outer Continental Shelf, or elsewhere on U.S. soil, when they are not drilling on the land currently available to them. I voted in favor of a bill to require the oil companies to drill on the 68,000,000 acres federal land that is already leased to them for drilling. Moreover, the areas with the vast majority of oil and gas are already open to drilling. According to federal government surveys, 82 percent of the area which contains natural gas in the outer continental shelf and 79 percent of the outer continental shelf with oil is available for leasing. Significantly, this was before Congress opened more space for drilling in the Gulf of Mexico in 2006.
While Americans are spending record amounts at the pump, oil companies are raking in record profits. This past quarter, the top 5 oil companies posted a combined profit of $44 billion in second quarter profits - up 42 percent more than last year. And this year, profits for the top five oil companies are projected to top $160 billion - far exceeding last year's record of $123 billion. Since 2001, the major oil companies have amassed close to $600 billion in profits. These record profits are not being used to invest in alternative and renewable energy, nor are they being used in such a way as to offset the price of gas for consumers. For example, in 2007, ExxonMobil spent only $10 million on renewable energy.
I believe we need to seek out short-term solutions to bring prices down while developing a long-term strategy to power our future with less oil. We have not sufficiently harnessed our renewable natural resources. Since coming to Congress, I have been working hard for all of my constituents to reduce our dependence on foreign oil, bring down record gas prices, and launch a cleaner, smarter energy future for America that lowers costs and creates hundreds of thousands of good paying green jobs.
In the short term, I, and other members of Congress, have been calling on President George Bush to release oil from the Strategic Petroleum Reserve, which is almost filled to capacity. This has a proven track record of reducing the price of oil within weeks. When President Bush released a small portion from the Reserve in 2005, the price of oil dropped 9.1 percent.
While continuing to advocate for immediate relief at the pump, I have advocated for increased utilization of our enormous natural gas reserves, as we transition into a low carbon economy. In order to make this transition, we need more investment renewable energy such as solar, wind, hydro, geothermal and biomass waste, while upgrading our transmission power grid, so that more energy gets from its source to its destination without losing it. We can fund these bold renewable energy investments by repealing billions of dollars in taxpayer subsidies for oil companies that are raking in record profits. Lastly, we must curb excessive oil speculation that is causing major market disturbances which prevent the market from accurately reflecting the forces of supply and demand in the energy commodity market.
In the coming weeks, Congress will continue to debate energy solutions to bring real relief to American families. Please know that I will continue to support and encourage legislation that will lower energy costs, decrease our dependence on foreign oil and protect our environment. Once again, thank you for contacting me. Please do not hesitate to contact me in the future on this or any other issue of concern.