Tuesday, May 10, 2011
The Blade, Toledo, Ohio
by Tom Troy
Boosting U.S. oil production would send gasoline prices downward and help free the United States from dependence on foreign oil, according to U.S. Rep. Bob Latta, who on Monday announced a package of bills to free up the domestic oil industry.
Mr. Latta's legislation, the "Consumer Relief of Pain at the Pump Act," contains numerous provisions that would allow for more exploration of oil and natural gas in the ocean outer continental shelf, the Gulf of Mexico, Alaska, and in the lower 48 states.
It would abolish regulations, tamp down on environmental lawsuits, and repeal a $4,000 fee on new applications for drilling permits.
"We've got to be able to produce our own energy in this country," Mr. Latta said.
The Bowling Green Republican held his news conference in front of a rusty old oil derrick at the Wood County Historical Museum near Bowling Green, the legacy of an era when producers in northwest Ohio and Indiana led the nation in oil production.
"Given America's abundance of natural resources, there is no reason why we are sitting tight and letting gas prices soar. I am excited to introduce this bill, which will curb surging gas prices and create downward pressure on the cost of oil by allowing America to take advantage of its vast domestic oil resources," Mr. Latta said.
He said the oil sources cited in the bill are capable of providing 198 billion barrels of oil, not counting shale oil.
Critics contend that America's domestic reserves won't make a big enough impact soon enough to lower the price of gasoline.
Republicans gained control of the House last November, running in part on promises to expand domestic oil projection. Mr. Latta's bill is one of several that aims to turn the GOP goal into reality.
Mr. Latta is chairman of the Energy Working Group of the Republican Study Committee, a conservative caucus within the Republican majority of the House of Representatives. He said the bill has 33 co-sponsors in the House.
The aim of the legislation is to increase the supply of North American energy by lessening "the regulatory burdens, mandates, and prohibitions that artificially increase the price of gasoline."
Mr. Latta held a similar news conference to promote domestic oil exploration on May 27, 2008, when a gallon of gasoline cost $4.09 at one Bowling Green station. Six months later, as the nation was plunged into a financial crisis and a recession, the price was less than half that much.
Monday the average price of regular gasoline in Toledo was $3.97 a gallon, about 19 cents less than one week earlier. A year ago, the average gallon of gas in Toledo cost $2.79.
Last week, U.S. Rep. Marcy Kaptur (D., Toledo) called on House Republicans to allow a vote on President Obama's proposal to end $4 billion in oil-industry tax benefits.
While acknowledging that reducing the oil and gas companies' tax deductions would be unlikely to reduce retail gasoline prices, Miss Kaptur said the additional revenue could be used to reduce the national deficit or could be paid out as a consumer refund.
Kaptur spokesman Steve Fought said the five biggest American oil companies earned a combined $27 billion in the first quarter.
"I don't think they need tax breaks from the middle class," Mr. Fought said.
President Obama has proposed using the funds for alternative-energy programs. The President has said that domestic production is at its highest point since 2003.
"The challenge is we've only got about 2 to 3 percent of the world's oil reserves and we use 25 percent of the world's oil. So we can't just drill our way out of the problem," Mr. Obama said in a recent speech.
Mr. Latta said repealing the tax benefits would be passed along to consumers in the price at the pump.
Copyright (c) 2011, The Blade, Toledo, Ohio. Distributed by McClatchy-Tribune Information Services.
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