With oil prices around $80 per barrel, gasoline above $3 per gallon, and natural gas three times higher than it was just a few years ago, consumers don't have to look beyond their pocketbook to conclude we are in the midst of an energy crisis. Federal Reserve Chairman Bernanke is calling rising energy prices a risk to our economic prosperity. With deadly violence in the Middle East, energy demand in China rising beyond expectations, and little ability in world energy markets to address either situation, some argue that we can just drill our way to energy independence. I disagree. While we do need to increase domestic production in the Gulf, we need to place far more emphasis on energy conservation as well.
Increasing drilling alone will not solve our energy problems. Quite simply, our energy supplies are too limited, and our demand too great. Even if we tapped every drop of oil and every cubic inch of natural gas, we still would not have enough energy to meet our long-term energy needs. That's why increasing conservation is a vital part of any energy strategy.
Earlier this year, along with Senators Snowe and Feinstein, I introduced legislation to increase corporate average fuel economy (CAFE) standards for automobiles by 10 miles per gallon within 10 years. Doing so will reduce imports of foreign oil, reduce energy prices, and reduce greenhouse gas emissions.
I also joined Senators Bingaman and Coleman in introducing the Enhanced Energy Security Act of 2006. This legislation would require the Administration to carry out a plan to save 2.5 million barrels of oil per day by 2016, the same amount of oil we currently import from the Persian Gulf, and to save 10 million barrels per day by 2031. These targets could be accomplished through a combination of CAFE standards for automobiles and trucks, alternative energy provisions, and additional efficiency measures.
Unfortunately, increasing energy efficiency alone will also not solve our energy problems. No matter how much we decrease demand, at some point we still need our own energy supplies.
Recently, I also voted in favor of the Gulf of Mexico Energy Security Act. This bill represents a compromise, which would expand certain areas in the Gulf of Mexico open to oil and gas leasing. At the same time, it would protect an area far larger -- many tens of millions of acres -- near Florida's coast from drilling through the year 2022.
The Gulf of Mexico Energy Security Act will provide access to 1.25 billion barrels of oil. A billion barrels of oil will not solve our energy problems, nor alleviate the need for CAFE standards, but it will help. Furthermore, every barrel of oil we produce in the U.S. is one less barrel of oil we have to buy from the Middle East. At $80 per barrel, 1.25 billion barrels of oil represents a lot of money that we can keep in U.S. hands and under U.S. control, rather than handing it over to Saudi Arabia or other Middle Eastern nations.
Perhaps even more important than oil, this bill will provide access to robust new supplies of natural gas -- some 5.8 trillion cubic feet. That is enough gas to heat and cool nearly 6 million homes for 15 years.
Natural gas prices in the U.S. are the most expensive in the world and are currently three times higher than they were just six years ago. Over a six-year period, America’s annual natural gas bill rose from $50 billion to $200 billion. In Maine, where much of our electricity is produced from natural gas, high natural gas prices mean high electricity bills, and contribute to Maine's having some of the most expensive electricity in the nation. In addition, Maine's manufacturing base has repeatedly cited high natural gas prices as a major reason for the decline in manufacturing in Maine and the U.S.
Not only will the Gulf of Mexico Energy Security Act provide important energy benefits, it includes vital funds for conservation. The bill directs 12.5% of all drilling revenues towards the Land and Water Conservation Fund (LWCF) Stateside Program, which benefits state and local parks throughout Maine. In 2005 alone, this program benefited 21 projects in Aroostook, Cumberland, Franklin, Hancock, Oxford, Piscataquis, Somerset, and York Counties. For the first time, this bill will guarantee direct funds for the LWCF program -- to the tune of billions of dollars over the bill's lifetime.
It is also important to note what the Gulf of Mexico Energy Security Act does NOT do. This bill does not open any area along the Atlantic or Pacific Coast to oil drilling. The bill only addresses exploration in the Gulf of Mexico, and even there only in limited areas. The bill maintains the existing moratorium covering the entire Atlantic and Pacific coasts, which I strongly support.
In contrast to the Senate bill, the House of Representatives has passed legislation which would allow oil and gas drilling in sensitive waters off of all U.S. coasts. I believe this legislation would be detrimental to the Atlantic and Pacific coastlines, especially Maine's coast. These areas not only include some of the world's most beautiful beaches and coastlines, but also some of the world's richest fishing grounds. I recently wrote to Senate Majority Leader Frist that I would strongly oppose any bill to come before the Senate which threatens the beaches and ecosystems of our coastlines with unacceptable oil and gas drilling activities.
I am pleased that the Gulf of Mexico Energy Security Act protects Maine's coastline, as well as the entire Atlantic and Pacific coasts. I am further pleased that this bill passed the Senate on an overwhelmingly bipartisan vote, with nearly three quarters of all senators voting in favor. While this bill will not solve our energy problems and does not alleviate the need for energy efficiency measures such as CAFE standards, it nevertheless will make a real difference for families throughout the nation that are struggling to pay the high cost of energy. Perhaps most important, this bill recognizes that we can increase domestic production and reduce our reliance on foreign oil while still protecting our precious coastlines.