Every week, 2,000 - 3,000 Second District residents write to me about the issues pending before Congress, and I work hard to respond to each person as promptly and thoughtfully as possible.  On this "Letter of the Week" blog, I highlight constituent letters that are of general interest.  If you'd like to share your own views, please feel free to e-mail me at any time!

Dear Nancy,

The rising price of gasoline is hurting nearly every family in America. We are tired of Congress doing nothing but bowing down to the environmentalists.

It is time for Congress to develop a program which allows the exploration of America's energy sources without materially affecting our environment. Congress should put our families first, ahead of the environmentalists.

Mark from Thayer, KS.

Dear Mark,

Thank you for contacting me to share your views on ending our energy crisis through offshore drilling and drilling in the Artic National Wilderness Refuge (ANWR). I appreciate hearing your thoughts on this matter.

I hear from many Kansans that support drilling to end our dependence on foreign oil. Let me assure you that I believe additional drilling is part of the plan. From day one, I’ve talked about an energy plan that requires balance like a three-legged stool in which all the elements are necessary. These include:

• Conservation

• Investment in Renewable Energy

• Domestic Drilling

Our economy is too reliant on energy resources that are found outside of our borders; including nations hostile to the United States . In fact, I have cosponsored legislation to allow drilling for natural gas resources off of our nation’s coasts. If we are to increase commerce within our own country, develop a safer way of fueling our energy needs and break our dependence on foreign oil, I think that further evaluation of proposed drilling off of our coasts is warranted.

There are also questions that need to be raised about our energy industry as a whole. For example:

• If drilling lowers gas prices, why since 2000 have the number of wells drilled on land climbed – from 3,000 to nearly 5,000 – while the price of gasoline has more than doubled?

wWhy are the oil companies currently leasing 68 million onshore and offshore acres in the U.S. , but are not tapping these acres for oil?

• Even if we opened up ANWR and our coasts to drilling, oil companies do not have the equipment available to explore that territory. The oil industry has stated that there is a shortage of ships used for deep-water drilling and don’t have the capacity available for rapid oil exploration and supply. How can we expand domestic energy in the short-term without the proper equipment?

• As gas prices grow higher, why are the top five oil companies making record-breaking profits, including Exxon Mobil’s $40 billion profit making it the largest of any company in history?

• Considering that supply and demand of oil has not drastically changed, is there deliberate price manipulation in the market, or are speculators artificially inflating the price of energy commodities?

The truth of the matter is that there is no overnight fix that will drastically reduce the prices we all pay at the pump. If we start today, oil and natural gas drilling won’t have an immediate impact on the marketplace because it can take up to 10 years before oil is actually produced. So here’s my main point: we should allow drilling, but must also concentrate on reducing oil consumption through plug-in hybrid vehicles and promoting alternative fuels like ethanol and biodiesel. Both drilling and investing in alternative vehicles will take time to impact the marketplace, and they should both be pursued as a part of a long term fix to our nation’s energy industry.

The debate on drilling in the Outer Continental Shelf (OCS) has been raging for years. Here are the details:

• Oil and gas leasing has been prohibited on most of the OCS since the 1980s.

• Congress has enacted OCS leasing moratoria from 1982-2007 in the annual Interior and Related Agencies Appropriations bill, allowing leasing only in the Gulf of Mexico (except near Florida) and parts of Alaska.

• President George H.W. Bush in 1990 issued a presidential directive ordering the Department of the Interior not to conduct offshore leasing or preleasing activity in areas covered by the annual legislative moratoria until 2000.

• In 1998, President Clinton extended the offshore leasing prohibition until 2012.

• Former Governor Jeb Bush (R-FL), Governor Charlie Crist (R-FL), Governor Arnold Schwarzenegger (R-CA) and current candidate for President John McCain (R-AZ) have all previously supported a ban on offshore drilling.

As this debate continues, I will carefully consider the benefits of exploring this area for energy as well as the potential environmental risks for most of our nation’s coastline.

I have taken action to reduce the price of gasoline:

• I cosponsored and voted for H.R. 6022, which temporarily suspends purchases of oil for the Strategic Petroleum Reserve (SPR) through 2008 unless oil drops below $50 per barrel. The SPR currently holds 700 million barrels of oil, putting it currently at 97% full. According to an independent expert from the Government Accountability Office, purchasing oil for the SPR increases the price of oil because it increases market demand for oil. By suspending government purchases, we could reduce oil and gas prices and provide savings to the American consumer. Moreover, the oil companies owe royalty payments to the U.S. government, but instead provide oil to the SPR instead of actually paying their royalties due. By suspending these royalty-in-kind payments, the government can earn revenue and invest in energy research and development. I am pleased to state that the bill has passed Congress and is now law.

• I have cosponsored H.R. 6251, the Responsible Federal Oil and Gas Leave Act. This bill encourages a “use it or lose it” approach to oil exploration. Oil companies must utilize federal lands or else give up their rights to another company that will develop that lease. These rules currently apply to the coal industry with positive results.

• I also worked last year to pass the Energy Independence and Security Act (H.R. 6), which increased the fuel efficiency of vehicles to an average of 35 miles per gallon by 2020. This represents the first improvement in Corporate Average Fuel Economy (CAFE) standards in a generation. These provisions will save American families using more fuel efficient cars $700 to $1000 per year at the pump. Although some effects won’t be immediate, by 2020 we should have a net consumer savings of $22 billion while reducing our oil consumption by 1.1 million barrels per day in 2020 (one-half of what we currently import from the Persian Gulf). Furthermore, the bill should reduce the price of a barrel of oil by over 40% of what it would have cost through increased use of biofuels and a decreased demand for gasoline.

• I recently voted for the Food and Farm Bill. Included in this bill is $1 billion for new energy technologies, and it expands the supply of biofuels made from biomass and non-food-source crop byproducts (the stuff we grow but do not eat). The Food and Farm Bill also transitions biofuels away from corn by reducing the tax credit for corn-based ethanol by six cents per gallon and creating new tax credits for the production of cellulosic biofuels. Moreover, the bill increases the Commodity Futures Trading Commission’s oversight authority to detect and prevent manipulation of energy prices, closing the current Enron loophole.

• I believe with the proper policy, we can find renewable sources of energy, create more jobs for Americans, and reduce the tax burden each citizen faces. With H.R. 6049, the Renewable Energy and Job Creation Act, the House passed an extension of tax incentives for renewable energy including tax credits worth $3,000 or more for consumers who purchased hybrid, fuel cell, or other alternative fuel vehicles. Also, the legislation extended the production tax credit (PTC) by three years for energy created from biomass, geothermal, hydropower, landfill gas and solid waste and also extended the PTC for wind energy by one year. The bill created $3 billion in bonus tax credits for states and local governments for energy conservation investments in public infrastructure as well as investments in research.

If Congress is to develop a reasonable national energy policy that promotes domestic resources, energy efficiency and alternative fuels, we must also remember to protect consumers, communities, and act in the best interest of our national priorities. This is just the start of a long conversation we must have on energy – it is not just gas prices but our entire energy industry that must be examined.

Thank you again for contacting me. As your representative, I both need and value your perspective. I hope you will continue to keep in touch and let me know whenever I may be of future assistance.

Sincerely,

Nancy Boyda
Member of Congress