Natural Gas Exploration on Outer Continental Shelf Nearly Passes the House (May 19, 2006)
Take Action: Send a letter to Congress in support of increasing our access to domestic natural gas supplies
Demand for natural gas is increasing, and production is straining to keep pace. That’s caused prices to rise this winter for millions of families and businesses. Without prompt congressional action, natural gas customers will continue to ride a roller-coaster of price volatility.
However, there is a blueprint for keeping natural gas available and affordable: utilize the abundant natural gas supplies found in the Gulf of Mexico and other offshore areas, as well as in the Intermountain West and Alaska.
By allowing producers to work in areas where large amounts of natural gas are known to exist, we will ensure we can produce enough natural gas right here in the United States to last for generations.
It’s time for Congress to take positive action to ensure that millions of Americans who rely on natural gas stay warm and secure in the years to come.
Offshore Natural Gas Production - A Look at the Facts
- Supply: The National Petroleum Council estimates that there are 300 trillion of cubic feet of natural gas on the OCS of the lower 48 states - OCS inventory says more.
- Environment: Natural gas can be produced without damaging the environment. Witness the recent experience in the Gulf of Mexico during the hurricanes: there were no leaks from production facilities. Even if a natural gas production facility did leak, natural gas is lighter than air and would escape into the atmosphere - it would not wash up on shore.
- Price: Natural gas prices are at record high levels due to very tight supplies and high demand. The ways to moderate the price are to increase the supply or reduce demand. While conservation can reduce demand in homes, the generation of electricity with natural gas has grown very rapidly. Total demand for natural gas is unlikely to decline.
- LIHEAP: Low-income households that rely on LIHEAP will benefit by lower prices. LIHEAP funding is very limited. Higher prices mean that fewer households will be served by LIHEAP. Taking measures to lower the price of natural gas is consistent with supporting additional funding for LIHEAP.
- Energy Security: Making use of the assets on the OCS means that American would be using a domestic resource, rather than an imported product.
- The Economy: High natural gas prices are a drain on the economy. They increase costs for industry, causing many businesses, particularly in the chemical and fertilizer industries, to close plants and/or move their production abroad. More than three million U.S. jobs have been lost as a result of high natural gas prices. Lower energy prices help American businesses remain competitive in the world economy.
News and Resources
Current Legislation
S.2253 - Domenici/Bingaman - Requires the Dept. of Interior to offer the Lease 181 Area of the Gulf of Mexico for oil and gas leasing.
Bill Text/Status
Additional Information (Source - U.S. Senate Energy & Natural Resources Committee)
S.2290 - Pryor/Warner - Reliable and Affordable Natural Gas Energy Reform Act of 2006
AGA Summary
Bill Text/Status
Additional Information (Source - U.S. Senate Energy & Natural Resources Committee)
H.R.4318 - Peterson/Abercrombie - OCS Natural Gas Relief Act of 2006.
AGA Summary
Bill Text/Status
H.R.4761 - Jindal - Domestic Energy Production through Offshore Exploration and Equitable Treatment of State Holdings Act of 2006.
AGA Summary
Bill Text/Status