NC Congressman will ask the tough questions

Congressman G.K. Butterfield (D-NC) proposed yesterday that a hearing be held to examine why gas and oil companies in the United States are not actively drilling for oil in land they already own. Butterfield hopes that the hearing will provide light on why oil and gas companies are not taking advantage of their current resources.

Butterfield, Congressman for NC's first district, which includes Greenville, has noticed that federal oil and gas reserves are open and available for development, but only a fraction of the reserves are being used.

While some members of Congress are pushing for more offshore drilling-including off the shores of places like NC-Butterfield wants to know why big companies are not using the resources they already have.

"If big oil and gas companies are neglecting the many onshore and offshore opportunities to increase production and lower prices they have already been given, why is there a need to even begin considering risky schemes to drill off the shores of paces like NC," said Butterfield.

An estimated 44 million acres of federal oil and gas reserves are available for drilling-only 10.5 million of those acres are actively being used now. Since 2004, gas and oil companies have racked up on drilling permits-almost 10,000-and then not used them.

Butterfield wants to know why. The Congressman urged House leaders to consider the issue as well.

Butterfield has asked Chairman Nick J. Rashall of the House Committee on Natural Resources and Chairman John D. Dingell of the House Committee on Energy to hold a joint committee to take a look at the issue.

One idea as to why these companies have not used the land they have for more oil and gas production? Profits.

"There are a lot of ideas as to why they are not opening the land they already have," said Ken Willis, communications director for the G.K. Butterfield campaign. "It can be a way to keep gas prices high, which keeps profits high. We have seen record profits [for gas and oil companies] recently."

Willis is right-according to the US Congressional Research Service, ExxonMobile made $40.6 billion in profits in 2007, Royal Dutch Shell made $27.5 billion and BP pocketed 17.2 billion-all using a fraction of available land.

"The debate should not be whether to further expand drilling off the shores of places like NC, but why oil and gas companies are stockpiling and sitting idle on the existing opportunities," Butterfield said. "Rather than debate risky offshore drilling schemes, we need to be holding gas and oil companies accountable for failing to act on the existing opportunities."

For more information about Congressman Butterfield and his proposal, visit his Web site at butterfield.house.gov.

This writer can be contacted at editor@theeastcarolinian.com.