Stop the Latest Liberal Anti-Energy Plan!

This legislative package misses the mark for providing our country with real energy security

by: freedom works | published: 07 18, 2008

Liberals in Congress are at it again. This time they are offering a nonsensical energy policy that would only drive up the price of fuel. This week the liberals will be taking up an anti-energy package that would actually do more to increase the price of gas by imposing restrictions on leases held by energy companies as well as on Alaskan oil exportation. 

TAKE ACTION!

This legislative package misses the mark for providing our country with real energy security and its misguided policy actually does more harm than good.

The provisions of this legislation relating to Alaskan oil production are simply a knee-jerk reaction for Congress to “just do something” rather than pursue responsible energy solutions.  If implemented, this legislation would direct the federal government to restrict Alaskan oil exports and unnecessarily interfere with construction of the Alaskan oil and gas pipeline.  It is not the government’s place to interfere in the market in this manner.  Any work done on the pipeline should be dictated by the market rather than arbitrary mandates from the government. 

Perhaps more disturbing, is the “use it or lose it” part of the bill.  This concept stems from the misunderstanding that simply because oil is not flowing from areas currently under lease, lease-holders are not actively developing and exploring for petroleum and natural gas.  The truth of the matter is that a lease on the land is not a guarantee that petroleum is even there at all, and it certainly doesn’t mean that the petroleum can be extracted. 

Moreover, current law already requires oil companies to have a producing well within 10 years or surrender the lease, but often it is nearly impossible for the companies to obtain the necessary permits from state governments.  All that the “use it or lose it” provision of the bill would do is force oil companies to spend valuable time and money to drill dry rock.  The costs of this fruitless work would inevitably be passed on to consumers, causing an increase in gas prices without a corresponding increase in supply. 

The proposed package of legislation amounts to more Congressional sleight-of-hand rather than a real solution.  The best thing Congress can do now is to get out of the way: open up the Outer Continental Shelf, streamline permit processes, and let the free market provide affordable energy for Americans.

TAKE ACTION

add a comment

  Name (First name, Last Initial ie: Bob S. )

 

Add a Comment

 

Email (This will never be shown, and is only used for comment notifications if requested)

Notify me if someone replies to my comment?