Yarmuth pushes legislation to increase oil production on leased lands

With energy policy poised to become a principal issue this election season, U.S. Rep. John Yarmuth (D-Louisville) is co-sponsoring legislation that would require oil companies to produce oil on federal land they hold by lease.

The Responsible Federal Oil and Gas Lease Act of 2008 was introduced yesterday by U.S. Rep Nick Rahall (D-WV.), chairman of the House Natural Resources Committee. The bill - HR 6251 - would levy fines against oil companies holding leases on federal land, yet not using them for oil production.

Sponsors say oil companies could "nearly double U.S. oil production from public lands" if the existing leases were utilized via drilling.

In a statement released yesterday, Yarmuth presented drilling on these federal lands as an alternative to proposals made by some Republican legislators that would open up the Arctic National Wildlife Refuge (ANWR) to exploratory drilling by oil companies.

"Big oil and its allies have been yelling about drilling in pristine wilderness, and all the while, they've been sitting on millions of acres of untapped land that they already have permits to drill," said Yarmuth. "We will force the oil companies to produce on the federal lands they already have or forfeit it to another company that will."

A statement released by Rahall's office pointed to leases given to coal producers as an analogy, noting that coal companies have to demonstrate they are "diligently developing" the lands under lease.

"Oil and gas companies, however, are not required to demonstrate diligent development. Because of this, oil and gas companies have been allowed to stockpile leases in a non-producing status, while leaving millions of acres of leased land untouched," said Rahall's statement.

Yarmuth's statement estimated that oil companies are producing on 20 percent of the offshore land they hold and 30 percent of that onshore. According to the release, the unused areas "could produce 4.8 million barrels of oil and 44.7 billion cubic feet of natural gas each day, nearly double current domestic oil production."

The United States Geological Survey estimates recoverable oil in ANWR could amount to a total of anywhere from 4.3 to 11.8 billion barrels.

As gas prices soar nationwide, discussion of domestic drilling and energy policy has dominated the early weeks of Kentucky's U.S. Senate race between incumbent Senator Mitch McConnell (R-Louisville) and Louisville businessman Bruce Lunsford (D-Louisville). McConnell is a key proponent of opening up ANWR for drilling, while Lunsford opposes that suggestion.

Former U.S. Rep. Anne Northup, Yarmuth's opponent in Kentucky's 3rd Congressional District, is also a supporter of increased drilling in ANWR.