U.S. Rep. John Peterson, R-Pa., is blasting a Democratic energy
tax plan that seeks to recoup billions in lost royalties from
offshore drilling. The money would then be used to promote a
renewable fuels effort.
The legislation – which is aimed at large, integrated oil
companies – could also impact local refineries such as the American
Refining Group and United Refining in Warren, as well as the
smaller independent producers that dot McKean County and the
surrounding area.
Taking to the House floor on Thursday, Peterson said the
proposed legislation will do nothing to address the nation’s
worsening energy supply situation, but could lead to higher energy
costs for American consumers.
Peterson is a long-time advocate of opening up the Outer
Continental Shelf for oil and gas drilling and for a comprehensive,
production-based energy strategy. He also sits on the House
Appropriations Committee that sets funding levels for the U.S.
Department of the Interior.
“For some of us, achieving the promise of energy independence is
a very real, and very personal, goal,” Peterson said. “And so the
idea that we’d bring a bill to the floor making it more difficult
and expensive to produce oil and natural gas at home – in the
middle of winter, no less – just boggles my mind.
“We need to do more to encourage domestic production, not less.
But this bill will stunt our operations at home, and force us to
look elsewhere to fulfill our essential energy needs. And I don’t
mean Canada.”
According to Peterson, statistics from the U.S. Energy
Information Administration indicate the total U.S. demand for oil
and natural gas is projected to grow by almost 30 percent over the
next generation – “a major area of concern considering the
country’s domestic production capacity is already woefully
inadequate when measured against our current energy needs.”
The legislation calls for recovering an estimated $10 billion
that stands to be lost to the government because of an error in
deep-water drilling leases for the Gulf of Mexico issued in the
late 1990s, according to The Associated Press. It would also impose
a “conservation fee” on oil and gas taken from deep waters in the
Gulf and cut out nearly $6 billion in oil industry tax breaks
enacted by Congress.
The funding recovered from the effort would help lead to the
development of solar and wind power and alternative fuels such as
ethanol and bio-diesel.
The measure comes at a time when the local oil fields are
booming with drilling for oil and gas.
“This issue could have been approached in a much more thoughtful
manner by the majority,” Peterson said. “I think if they
(Democrats) had spent some time reading up on the issue, they would
have found that a fishing pole would’ve suited their interests just
fine; instead, they’ve decided to drag a big old net across the
ocean floor – and they’re going to find out quick that a whole
bunch of small producers will be the first ones caught up in
it.”
ARG President and Chief Operating Officer Harvey Golubock told
The Era in a separate interview earlier this week that he didn’t
believe any effort aimed at the larger oil companies would greatly
affect the Bradford refinery, noting “we are a niche player
here.”
However, Golubock did say officials with ARG recognize the
growing trend toward alternative fuels, adding “alternative energy
will impact the overall energy business.”
“We are examining the technologies to realize how they fit with
the markets here in our regional niche,” Golubock said. “We want to
provide the region with good products and see lots of opportunity
for growth for the business as we move forward.”
Golubock said the federal government is prepared to offer
significant financial incentives for companies that offer
alternative products.
“It’s a rapidly changing marketplace,” Golubock said, noting the
petroleum and gas business is facing increased scrutiny from
regulatory agencies.
Officials from United were not immediately available for comment
Thursday night.
Peterson said the country’s energy policy is also forcing it to
rely on unstable foreign governments for its energy – particularly
oil.
“I don’t know anyone who thinks we ought to be buying more of
our energy from Saudi Arabia, Russia and Qatar,” Peterson said.
“But an inconvenient consequence of this bill’s passage is that
those are the guys to whom we will have to go begging for energy –
just so we can exact a pound of flesh from our domestic oil
industry.”
The legislation – HR 6 – was passed by a 264-163 vote in the
House. It will now be sent to the Senate, where its prospects for
passage are less clear.
