Charles Boustany

Mr. BOUSTANY

Mr. BOUSTANY. And I would say for folks back home in Louisiana who may be listening to this, our 37.5 percent revenue sharing was also jeopardized by this Democratic bill. So after 50 years of fighting to get revenue sharing for Louisiana in the 8.3 million acres that were opened up in the eastern Gulf of Mexico, we could suddenly lose that if that bill were to go all the way through the Senate and the President signed it. Fortunately, the President says he's going to veto it, but our own Democratic Senator, Mary Landrieu, has said this bill is dead on arrival.

Mr. BOUSTANY. It is my understanding that that revenue sharing is at risk.

Mr. BOUSTANY. There is no assurance that that revenue would be retained. And that's a very important incentive to get the States to play ball with this. And let's take advantage and use those natural resources that we're so fortunate to have. We're at a time right now where oil reserves are being depleted around the world, and oil infrastructure is really in a state of decay in many of these countries. It's the free market companies, the big companies that are around the world that have the kinds of technology that we need to get in there and do this. But with everything else in decline, we need to be taking advantage of using our own resources while we transition, and increase investment in alternative forms of energy, alternative fuels, whether it's biofuels, because there's a whole host of new generation biofuels that we're on the cusp of working with. We need to invest in that, but it's not going to happen overnight. So that's why it's critically important right now to make strategically good decisions about how we use our resources. We owe that to the American people. This Congress will be irresponsible. Our Democratic friends will be irresponsible if they don't allow a comprehensive energy reform package to come to the floor of the House.

Mr. BOUSTANY. I fully agree with you. And we in Louisiana know that good energy policy can march hand in hand with environmental policy that's sensible, and it's also good for the economy and it grows jobs. We have seen that. We've seen what happens when bad policy affects an industry like the oil and gas industry and you lose jobs. We've seen that kind of cycle. And there's no reason for that. Those are policy decisions made by those who are truly uninformed. What the American public has already very clearly stated is that they want a comprehensive energy policy. And we have it within ourselves to do that. This is not rocket science.

Mr. BOUSTANY. I thank the gentleman for yielding. I just want to mention to my friend from Texas that we're with you on this. My State got hit by four hurricanes, two really devastating hurricanes in 2005, Rita and Katrina, and now Gustav and Ike. And folks are suffering back home on top of the suffering that they've had as a result of high prices at the pump. And I have to say, it frustrates the heck out of me to come up here to try to get something done to help folks back home and around the country suffering with these high gas prices, and we can't get it done. We're playing political games up here because of the leadership on the other side. It's very frustrating because folks in Texas, my friend's State, my home State of Louisiana, are really suffering doubly because we have born the burden of providing energy for this country in Louisiana and in Texas. And yet, folks back home are saying, what's wrong with the rest of the country? What's wrong with the Democratic leadership? Why won't they give us an energy policy. Give us a vote. We've got the bills. We've got the answers. Give us a vote. That's all we're asking. And I yield back to my friend from Texas.

Mr. BOUSTANY. I thank my friend and colleague from Georgia. A little bit about my district. My district is the 7th Congressional District of Louisiana. It is southwest Louisiana. So I am on the border with Texas. I am on the gulf coast, and we have been a long time leader in the oil and gas industry. We have about 3,800 drilling platforms out in the Gulf of Mexico. Most of those are located off the coast of my district. I have one of the Strategic Petroleum Reserves in my district, and it accounts for one-fourth of the oil that we hold. I also have a confluence of pipelines called the Henry Hub which is the pricing point for natural gas for the entire country. We have a number of refineries along the Calcashoe ship channel located throughout southwest Louisiana, so we have a significant amount of the refining capacity that supplies refined products to this country. The oil and gas industry is about jobs. Every time I fly back and forth to my home in Lafayette, Louisiana, I run into four or five gentlemen typically who work in the oil and gas industry, and when I ask them where they are working, they are telling me that they are coming from or going to countries all over the globe, Angola in Africa, Equatorial Guinea, Thailand, Vietnam, and countries throughout the Middle East. I ask them why is that? Why are you out there? They tell me I used to work in the oil and gas industry off the gulf coast, and after the imposition of the windfall profits tax in the 1980s which devastated the oil and gas industry, they lost their jobs in the gulf coast area and they ended up going off and working all over the globe. We have expertise all over the world in the oil and gas industry, and every one of these gentlemen when I talk to them wishes they could come back home and work in the United States, to be close to their families, to work in an area that they are comfortable with rather than being off in foreign countries and having to do all of that travel that oftentimes takes 2 or 3 days of their time, often at their own expense. So getting a comprehensive energy policy is about good, high-paying American jobs. It is about keeping jobs in the United States. It is about growing new jobs. It is not just about the oil and gas industry. What we have been advocating is a comprehensive, all-of-the-above energy approach, an energy approach that looks at oil and gas because we are dependent on oil and gas for most of our transportation needs, much of our electricity, and really for a good part of all of our energy needs. Oil and gas are a critical part, but at the same time we also have to look at good, tried and true methods of conservation. And we have to look at alternative fuels and renewable energy and nuclear power and clean coal technology. All of the ideas that are out there, we should be unleashing individual American genius because that is what has made this country great and has helped to solve problems of the past, and is what will help us pull out of this energy crisis that we are seeing. Families and seniors and small businesses and our schools, our local governments are struggling with the high cost of energy. I talked to a senior not long ago who told me it was getting difficult for her to afford gas and make the usual runs to the grocery store. And she was paying high food prices on top of that, so she teamed up with folks in her neighborhood and they are still struggling with the cost of gas. This is just unacceptable. In a country that has the brilliance that the American people have and the entrepreneurship, we shouldn't be struggling with this. The sad thing is that the only thing blocking it is good policy, and this Congress has it within itself to move forward on a good, comprehensive energy policy. It distresses me it has been blocked. We have not had an opportunity to bring a comprehensive energy bill to the floor of the House. This country has had one energy shock after another. There have been about six of them since the end of the Second World War. A number have caused significant price spikes, when you talk about 1973 with the Arab oil embargo, 1979 when the Iranian problem came up, the 1990 gulf crisis, the windfall profits tax thrown on top of the oil industry in the 1980s, and of course recently what we have seen with real high price spikes.

Mr. BOUSTANY

Mr. BOUSTANY. If the majority leader would yield.

Mr. BOUSTANY. This provision hurts the larger companies which are necessary with the technology to drill in deep water. The smaller companies participate in that. So if we hurt our deep water abilities in the United States off our Outer Continental Shelf, we are making ourselves less competitive and we are hurting job prospects. I have seen so many folks from Louisiana who are serving all over the world, working in the oil industry who have left the United States, left Louisiana because they have to work over there. We could keep these jobs here.

Mr. BOUSTANY. Will the gentleman yield?

Mr. BOUSTANY. I would like to ask if you considered repealing section 199, which is basically singling out the oil and gas industry for a tax which all of our manufacturers don't have to pay--

Mr. BOUSTANY

Mr. BOUSTANY. Mr. Chairman, I thank my colleague from Utah for yielding, and I stand with him on these issues. Mr. Chairman, this is a matter of setting priorities. I just got back Monday evening for votes. I left my home State of Louisiana, my district of southwest Louisiana, that was just hit by Hurricane Gustav. Folks are suffering. Seniors are suffering back home. Seniors are suffering all over the country. Seniors in Vermont are suffering and they're going to suffer with high prices of heating oil this coming winter. Farmers, I have got farmers that lost their crops just last week, and they're faced with high diesel costs and high gasoline costs and high fertilizer costs because this country doesn't have an energy policy. What are our priorities? This is the most important bill we have done so far this week, and it's a study and it's a study based on what the subcommittee found there to be no risk involved. So I have to question what are the priorities of this Democratically led Congress. We in Louisiana have been bearing the burden of providing energy in this country for quite a long time, and we have seen our coasts, our precious wetlands devastated, and now we are trying to rebuild those wetlands. Is that a priority? It's certainly a priority to me. But clearly getting an energy policy has to be one of the top priorities for this country. We should all recognize that. And I think my colleagues across the aisle, after spending August back home hearing from folks in their districts, would understand that. We in Louisiana know that energy policy and environmental policy and economic policy all march together. That's good policy. We're also talking about jobs. Mr. Chairman, every time I fly home on the little stretch between Houston and Lafayette, Louisiana, I run into folks from Louisiana who are coming back or going to countries all over the globe, Equatorial Guinea, Angola, Thailand, Vietnam, countries throughout the Middle East, Louisianians with oil and gas expertise who wish they could be back in this country closer to their families. No, they're having to travel all over the globe and be away from their families for months on end to make a living in the energy industry. These are jobs that were lost to this country. These were manufacturing jobs that were lost to this country in the 1980s when a Democratically controlled Congress imposed a windfall profits tax on the oil and gas industry. And what's their answer today? Well, let's get rid of the manufacturing tax credit on oil and gas companies. Let's single out the oil and gas companies. Well, on one hand you say you want good jobs and good manufacturing jobs, but then you propose policies that drive these jobs out of this country. I don't get it. I just don't get it, and the folks back home in Louisiana don't get it. I talked about the environment. Down in my district we've got a beautiful stretch of wetlands and marsh. It's a bird habitat for ducks, a breeding ground for ducks. White Lake, a beautiful lake, a pristine lake, is down there in Vermilion Parish. That land is managed by BP Amoco, and they have done an outstanding job with the environment. Just yet another example of good environmental policy working hand in hand with energy policy because what does it mean? Jobs, good American jobs. Explain that to the folks in Michigan. Explain that to the folks in Ohio who are struggling right now. If you want good American jobs, you get a good energy policy, an all-of-the-above energy policy. An energy policy that looks at oil exploration in the Outer Continental Shelf and Alaska, shale oil, nuclear energy, looks at building refining capacity, and also invests in renewables and alternatives. That's what we're advocating over here. We want to work in a bipartisan fashion. But, no, the other side, our friends across the aisle are finding ways to avoid the issue. That's not what the American public wants today. Everybody knows what the polls are showing. Seven out of ten Americans want a comprehensive energy policy. How can you go home and explain to the seniors, an elderly woman back in your district who can't afford gasoline for her car to go to the grocery store to pick up a few essential items, so then she has to carpool with three others and now they can't afford it? I'm all for conservation. I believe conservation is a critical part of our energy policy, but yet conservation is not enough. We need a real energy policy, an all-of-the-above approach. Our friends across the aisle are proposing all kinds of things that we're hearing about. They're proposing a policy that permanently locks up 80 percent, 80 percent of American energy on the Outer Continental Shelf. Our friends are proposing permanently locking up 1 trillion barrels of oil from oil shale in the inner-mountain west. How can you explain that to the American public? What's your explanation? How can you say we want to permanently lock up more than 10 billion barrels of oil on Alaska's remote North Slope? And how do you explain no to nuclear power when countries like France rely on nuclear power for 80 percent of their electricity? People around this country are struggling with high utility bills. We ought to be looking at ways to diversify our sources of energy and putting this country on a sound footing, putting America first. How can our friends across the aisle do nothing about constructing clean coal and looking at that type of new technology? This is critical. And yet again they propose additional tax increases on the energy companies that are trying to provide energy for this country. I just don't get it. I don't get it. Mr. Chairman, I think everybody in this Chamber ought to look at that plaque up there. Look at that plaque. It quotes from Daniel Webster, who says, ``Let us develop the resources of our land.'' The resources of our land. We shouldn't be holding back. This is the only country holding back on this. Let us develop the resources of our land. Let us call forth its power and build its institutions. That's what this Congress should be doing. Not wasting time. I have got to go back home and explain why I spent a week up here while folks back in Louisiana are struggling after another hurricane and I have got to explain to those folks that I came up here and we didn't do anything substantively in this Congress and we didn't do anything that they care most about: getting an energy policy. Read that plaque again: ``Let us develop the resources of our land.''

Mr. BOUSTANY

Mr. BOUSTANY. Last week a powerful hurricane hit southern Louisiana. First I want to thank all the volunteers and workers who are helping in this recovery effort. Hurricane Gustav, as Hurricane Ike threatens to do, highlights the importance of American energy production in the Gulf of Mexico. Dangerously, America remains just one major storm or one geopolitical act from another major hike in the price at the pump. Gas prices affect our food prices, the economy in general, and people's pocketbooks directly. Throughout August I joined my fellow House Republicans in urging Speaker Pelosi to bring Congress back to session to help American families struggling with dramatically high gas prices. She refused. But now we can act. We can increase our own energy supply, become less dependent on foreign sources of oil, create good, high-paying American jobs. We can do this. Many of these energy jobs are going overseas, but we can keep them right here in America. By harnessing all of America's vast resources, we can help Americans in the short term and into the future. Let's do the responsible thing. Let's open up parts of our deepwater coasts for energy exploration, and let's begin to reduce the price at the pump. We can take control of our energy future, which is our economic future. We can lower families' anxiety, but Congress must act to increase American energy production across the board now.

Mr. BOUSTANY

Mr. BOUSTANY. Madam Speaker, I want to thank my friend and colleague from Texas for yielding time to me. You know, the collective wisdom of the American people is a force to be reckoned with. And the American people are speaking very, very loudly today about what we need. They are speaking about the need for a comprehensive energy policy; an energy policy that looks at all the possibilities that we have. And that is just, in fact, what House Republicans are offering, and I would venture to say a fair number of Democrats on the other side of the aisle want this. But this approach is being blocked by the Democratic leadership, unfortunately. Madam Speaker, I would urge that the Democratic leadership listen to the collective wisdom of the American public. Now this idea about drawing down out of the Strategic Petroleum Reserve is incredibly irresponsible. We are on the verge of a new hurricane season where we may need that oil. We have geopolitical unrest around the world where we may need that oil. The current volume held in the Strategic Petroleum Reserve is just over 700 million barrels, and at current usage of 20 million barrels a day in this country, that is 35 days. 35 days. That reserve, that Strategic Reserve was put in place for real, dire emergencies. Now, some would argue, yes, the price at the pump is really hurting American families, and I fully agree. I have spoken to many of my constituents who are feeling the pain at the pump today. But that is no excuse, that is no excuse for this Congress to shirk its responsibility to come forward with a comprehensive energy policy that focuses on production in an environmentally responsible way by opening the Outer Continental Shelf in Alaska, by investing in alternative and renewables, by looking into clean coal technology, shale oil, building out refining capacity to meet our needs, investing in nuclear energy. All of these things, all of the above is what this country demands and is what is necessary. So I would suggest it is time to quit this irresponsible posturing in this body, and let's move forward with a comprehensive energy policy. This is a national security issue. It is clearly a national security issue. Speak to any of our generals and our troops who are fighting in the Middle East. This is a national security issue. And I urge my colleagues to get serious about this issue. The American people have gotten serious about it. So why are we delaying? What is the reason for procrastination? We can come to a reasonable compromise in this body to deal with all of it. And I would point out that exploration and production today can be done in a very environmentally sound way. My district in southwest Louisiana has been doing this. If you look at the oil and gas industry, in the aftermath of Hurricanes Rita and Katrina when 80 percent of it was out, we didn't have spillages in the Gulf of Mexico. Everything was done in a very sound and responsible way. The evacuation was carried out well, and this oil and gas production came back on line very quickly in the interest of the American people. And finally, I would add that by increasing responsible, environmentally sound American exploration and production, we're creating good, high-paying American jobs, also a very important stimulus to this economy. Clearly, what we need today is a comprehensive energy policy coupled with strengthening of the dollar, and I think we will work our way out of this economic crisis.

Mr. BOUSTANY

Mr. BOUSTANY. But if the majority leader would yield.

Mr. BOUSTANY. Would the majority leader yield?

Mr. BOUSTANY. I would like to ask the gentleman: How can we accurately know what those reserves are if we can't even have seismic, modern seismic activity done? So, that's the reason to open the Outer Continental Shelf, to at least get the process started. If the seismic shows nothing, these companies lose the lease. That's current law. So I don't understand the majority's opposition to opening the Outer Continental Shelf.

Mr. BOUSTANY. I thank the majority leader. The point is, if we have tight supply and demand, then we should be opening up all these areas for seismic analysis to get accurate information about these reserves, and if the seismic shows nothing, there's no activity; you lose the lease. The companies lose the money. That is the current law, and I think the American people want an explanation as to why we're not doing that. We should be looking at all of our potential resources. We, in Louisiana, have known for a long time how this works. In fact, Louisiana delegations for 35 years have fought to open up additional Outer Continental Shelf and let the States share in the revenue.

Mr. BOUSTANY

Mr. BOUSTANY. Mr. Speaker, this week the President took a small but important step to lowering the price at the pump for American families. Lifting his ban on Outer Continental Shelf energy exploration was the right thing to do, and I applaud him for it. Now, Congress must act. We can help increase American supply, lower the price at the pump, and create good American jobs. The ball's in our court. Will Congress listen to our constituents who are struggling with tough decisions about where and when they can drive? Or will congressional leadership remain beholden to environmental extremists? In Louisiana, energy production is done in a responsible way. After two devastating hurricanes, employees of our energy industry worked hard to get rigs back up and running knowing they were a very important part of our recovery efforts. OCS does not represent a magic bullet. However, it's one piece of a responsible comprehensive energy plan to lower the price at the pump. Innovative technology, better conservation, and new fuels are critical, too. So let's start all of them. What is holding us up? By harnessing all of America's vast resources and genius, we can give Americans, in the short term and long term, a good energy policy. Let's do the responsible thing. Let's have a comprehensive energy policy.

Mr. BOUSTANY

Mr. BOUSTANY. Will the gentleman yield?

Mr. BOUSTANY. I yield to the gentleman from Massachusetts.

Mr. BOUSTANY. That picture you just showed us is actually a very nice site for an LNG facility, but I would point out that I think the Coast Guard considerations were about specifically a bridge. That's fine. If that's the problem, I understand that. Also, why abuse the act? Why abuse the act?

Mr. BOUSTANY. I thank my colleague from Washington State for yielding to me. Mr. Speaker, I rise in opposition to the rule and this underlying bill, because I believe, first of all, this is an abuse of the Wild and Scenic Rivers Act. It's further demonstrating the party here, the opposite party position that we have to have an either/or policy. It's either the environment or energy. Whereas I believe on our side of the aisle, we are advocating that the two can march hand-in-hand. I believe this is also a way of blocking sensible energy policy going forward. Clearly, I think, the American public understands it, as well as we do, that we need a comprehensive energy policy. I want to make a few points. First of all, we have seen LNG development down in my district. I have got one facility that is expanding on a river. It's in the midst of a very densely populated area. That river is used not only for industrial purposes, but also recreational purposes. There has been a record of safety, in fact, an unprecedented record of safety. We have a new LNG facility that came online, I guess, a couple of months ago. Secretary Bodman was down there with me. This is creating new American high-paying jobs. Furthermore, there are two other LNG facilities under construction. Finally, I would say these are all small companies. They are not large, big oil companies. One of the companies, the one that does have the one, the facility that's new and up and running and building a second one, not only that, what they have done is participated in coastal restoration projects and marsh preservation. So we know down in Louisiana that our beautiful marsh and wetlands can also be a working wetlands. We also know that this creates great jobs. We also know there is a record of safety with the facility that's in the midst of a densely populated area. I would ask my colleague, what's he going to say to his constituents in Massachusetts and the Northeast when heating oil prices are going to be exorbitant in this next winter? What is he going to do? What is he going to say?

Mr. BOUSTANY. I think the gentleman is in error. There actually has been a new LNG facility that just went online in Louisiana, and two more that will open in a few months.

Mr. BOUSTANY. If I may reclaim my time. Why are they intent on abusing the Wild and Scenic Rivers Act as a backdoor approach to block LNG? I don't understand that. Clearly, these companies have been good corporate citizens, and they have worked to be good stewards of the environment. I will point out that one company, in addition to marsh restoration and preservation, also prepaid taxes in the State of Louisiana to build schools after Hurricane Rita. This company also built the new health clinic in a small town that never had a health clinic before. These companies are good stewards. They show that environmental policy and energy policy can march hand- in-hand. I don't understand the argument that the other side is making. They are just intent on blocking comprehensive energy policy, and I oppose the bill.

Mr. BOUSTANY. Will the gentleman yield?