U.S. HOUSE OF REPRESENTATIVES

Contact: Vaughn Jennings 202.225.2211

Washington, Jan 20, 2010 - Today, Congressman John Sullivan delivered the following opening statement as the House Energy and Commerce Committee’s subcommittee on Energy and the Environment held a hearing on the Exxon Mobile –XTO merger, and its impact on the US energy market. Exxon’s purchase of XTO is a strong signal that American energy companies are getting behind natural gas as a fuel for the future.  The text of Sullivan’s remarks are below.

“Thank you for holding this important hearing today on the pending ExxonMobil-XTO merger. While the merger between these two companies still requires regulatory clearance and shareholder approval, it sends an important signal on the positive role natural gas will play in our energy future.

I believe increased use of natural gas is a key component of the comprehensive energy policy our nation so badly needs.  Natural gas is not just American made energy, its Oklahoma made energy – federal laws and policies promoting natural gas would undoubtedly help our state as we are the third largest natural gas producer in the nation, typically accounting for almost one tenth of the total U.S. production.
I am also proud to be the Republican author of the H.R. 1835, the NATGAS Act, which will reduce our nation’s dependence on foreign energy while simultaneously reducing transportation fuel costs by creating and extending critical tax incentives that focus on natural gas as a transportation fuel.

I hope that we take this time today to recognize the importance of hydraulic fracturing to shale gas exploration and recovery. Hydraulic fracturing is an important part of energy production in the United States and this technology has increased recovery of oil and gas reserves.  In fact, it is required to make many of the nation’s wells productive. The National Petroleum Council has estimated that 60% to 80% of all wells drilled in the United States in the next ten years will require fracturing.

There are some committee members on the other side of the aisle who want to remove the exemption hydraulic fracturing currently has from the Safe Drinking Water Act (SDWA), thus putting the practice under the grip of the EPA.  That would be a mistake and a bureaucratic nightmare that would lead to delays in recoverable domestic natural gas extraction and would hurt job growth in our nation. Keeping the hydraulic fracturing exemption intact from onerous EPA regulation is critical to increasing the supply of American energy.”

In the First Session of the 111th Congress, the House passed Congressman Sullivan’s bill, H.R. 1622, that expands research and development into natural gas engines, so we can increase the number of natural gas vehicles on our roads.  In addition, Sullivan is also the lead Republican sponsor of the NATGAS Act, H.R. 1835 which among other things would create a new tax credit for auto manufactures to make their natural gas products available here for American consumers.