S. 3711 - Why? A Vibrant U.S. Economy Depends on It.

CAES News

Vote YES on S. 3711 -- Why? A Vibrant U.S. Economy Depends on It.

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 A vote for S. 3711 — The Gulf of Mexico Energy Security Act of 2006 — is a vote to keep the American economy moving forward. In the face of analysts’ predictions of a slow-down in the U.S. economy due in part
to record high U.S. energy prices, it is critical to safely access America’s abundant supplies of energy on the Outer Continental Shelf.

Opening up the Lease Sale 181 area called for in S. 3711 is a positive step forward to reversing the trend of higher natural gas prices. From 1999 – 2005, U.S. natural gas prices have increased nearly 300%, creating an unnecessary drag on the U.S. economy.

  • The American Chemistry Council estimates that higher U.S. natural gas prices have eroded the economic growth rate by about 0.3% less per year. In a $12 trillion economy, that’s about $36 billion is reduced GDP and an average of about 325,000 fewer jobs.
  • The National Association of Manufacturers estimates that more than 3.1 million manufacturing jobs have been lost partly as a result of higher U.S. energy prices. These jobs have either been eliminated or moved overseas where global businesses seek lower energy costs to stay competitive.

A vote for S. 3711 will help reverse this dismal economic trend. S. 3711 will:

  • Safely open 8.3 million acres of energy supplies on the Outer Continental Shelf that are currently off-limits to deep sea energy exploration.
  • Resource estimates for this area will provide access to 1.26 billion barrels of oil and 5.8 trillion cubic feet of natural gas; this is enough natural gas to heat/cool 6 million homes for 15 years.
  • Provide new revenues to the U.S. Treasury, state treasuries and to important programs like the Land and Water Conservation Fund Stateside Program.
  • Revenues derived from exploration in areas opened in S. 3711 will be shared:
    • > 50% with the U.S. Treasury,
      > 37.5% with Gulf Coast states,
      > 12.5% to the Land and Water Conservation Stateside Program, or nearly $125 million per year.
  • Give Gulf Coast states new and unprecedented control over energy exploration off their coastlines, better than currently exists.

 

By voting YES on S. 3711, the U.S. Senate can reverse a more than 25-year ‘Just Say No’ energy policy. We can safely access the abundant supplies of American energy on the Outer Continental Shelf (OCS). Some estimate that the OCS has enough oil to meet demand for 20 years and enough gas to heat our homes for 20 years.
Congress holds the key to ending the current energy crisis in the U.S.

VOTE YES ON S. 3711 – AMERICA IS COUNTING ON YOUR VOTE.