Energy Bill is Clearly Flawed

Now that the Gulf of Mexico oil spill appears to be contained, the next great challenge is recovery. Although experts have concluded that the oil is disappearing from the water more quickly than anticipated, the spill will remain a significant threat to the environment long after the well is permanently capped. The Gulf Coast economy faces a long road to recovery, as well. Unfortunately, congressional Democrats recently passed a bill that will make rebounding even more difficult.

On July 30, House Democrats approved the "Consolidated Land, Energy, and Aquatic Resources" -- or CLEAR -- Act. Ostensibly intended to help prevent future oil spills, the bill actually favors giant corporations like BP while destroying jobs and raising taxes on American oil.

Investigators have not yet determined what caused the Deepwater Horizon well to fail, much less developed new recommendations to guard against future incidents. Lacking the information necessary to make oil exploration safer, Democrats seem to have settled for making it more difficult. Under the CLEAR Act, the leasing process will become significantly more costly and complicated. The burdensome new regulations will apply not only to deep water wells but also to those in shallow water, including those located on state lands. The massive new expenses and bureaucracy will discourage companies from even attempting to drill, thereby further increasing our dependence on foreign oil. Smaller, independent companies will be hit the hardest, while vast corporations – like BP – may be the only ones with the resources necessary to drill for American oil.

The Gulf Coast region has already lost thousands of energy jobs due to the Obama administration’s ban on drilling. Thanks to restrictions in the CLEAR Act, it will likely lose thousands more.

No Democratic bill would be complete without new taxes, and the CLEAR Act is no exception. The legislation imposes a tax of $2 per barrel of oil and 20 cents per million Btu of natural gas. Outrageously, this new national energy tax applies only to oil and natural gas produced in America; foreign fuel is exempt.

In every respect, this is simply a bad bill. Democrats are exploiting the BP spill to impose new taxes and bureaucracy that will raise energy costs for consumers, kill jobs and increase dependence on foreign oil. There is no guarantee that this legislation will do a thing to prevent future spills, but it is certain that it will discourage domestic exploration and punish small, independent companies that had nothing to do with the spill. At a time when we should be doing everything possible to create jobs and promote energy independence, the CLEAR Act is exactly the wrong approach.

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