New York, New York – Today Congressman Charles Rangel hailed President Barack Obama’s proposed outline for an “all-of-the-above” approach to developing new domestic energy sources, expanding oil and gas production, and reducing our reliance on foreign oil.  Rangel is a fierce backer of establishing America’s energy independence and alternative energy initiatives.  As a Member of the Ways and Means Committee, Rangel has strongly supported President Obama’s efforts to eliminate subsidies for oil and gas companies.  Each year such subsidies have cost American taxpayers $4 billion annually while oil and gas companies continue to rack in record profits.

“With Americans doing everything they can to cope with higher gas prices and tightening budgets, President Obama has been responsibly trying to ease their burden,” said Rangel.  “Meanwhile, my Republican Colleagues have done nothing in recent months but defend tax breaks for Big Oil, attempt to cut mass transit funding and are now trying to blame the President for high gas prices as an election tool."

Domestic oil and gas production has increased each year since President Obama took office in 2009. Currently, American oil production is the highest that it has been in eight years. Last year, for the first time in over a decade, imports accounted for less than half the oil consumed in America. In 2011, import dependence fell again to its lowest level in 16 years.

Over the last three years, President Obama has approved the opening of millions of new acres for oil and gas exploration in the United States.  In January of this year, the President directed his Administration to open more than 75 percent of our potential offshore oil and gas resources, and scheduled a 38-million acre lease sale in the Gulf of Mexico for this summer which could produce up to 1 billion barrels of oil and 4 trillion cubic feet of natural gas.  In 2011, President Obama took the largest step in America’s history to reduce our reliance on foreign oil, putting in place fuel economy standards that will nearly double the efficiency of the vehicles people drive over the next decade. This step will save American families $1.7 trillion dollars at the pump and cut oil consumption by 12 billion barrels.

“Our current oil and gas production proves that drilling is not the solution for lowering gas prices.  The price of oil is established on the world market.  With nations such as China, India, and Brazil demanding more oil, we need to keep developing new sources of energy as the President has outlined,” said Rangel “America only holds two percent of the world’s oil reserves, but we use about 20 percent of the oil produced every year.  Alternative energy sources are the future.  If we keep the current course we will continue to be held hostage by a volatile world market and speculative trading on Wall Street that continue to drive up the price of gas.  We must adopt President Obama’s vision and become the world leader in alternative energy so that future generations won't worry about filling their tanks or heating their homes.”

More information on President Obama’s All-Of-The-Above Approach To American Energy:

During the State of the Union Address, the President laid out a blueprint for a new era of American energy – an economy fueled by homegrown and alternative energy sources that will be designed in America and produced by American workers. While there’s no silver bullet to address rising gas prices in the short term, the Obama Administration will continue to take every possible step to enhance energy security and protect consumers against rising gas prices in the long term. We are committed to an all-of-the-above strategy that expands production of American energy resources, like oil and natural gas; increases energy efficiency to save families and businesses money at the pump; and develops cleaner, alternative fuels to reduce our dependence on oil. President Obama has also called on Congress to eliminate subsidies for oil and gas companies that cost American taxpayers $4 billion every year and taken aggressive steps to root out fraud and manipulation in the oil and gas markets. 

Expanding Domestic Production of Oil and Gas and Reducing Imports 

Production by the Numbers: Since 2008, U.S. oil and natural gas production has increased each year, while imports of foreign oil have decreased. 

• In 2011, U.S. crude oil production reached its highest level in 8 years, increasing by an estimated 110,000 barrels per day over 2010 levels to 5.59 million barrels per day. 
• U.S. natural gas production grew in 2011 – the largest year-over-year volumetric increase in history – and easily eclipsed the previous all-time production record set in 1973. 
• Overall, oil imports have been falling since 2005, and net imports as a share of total consumption declined from 57 percent in 2008 to 45 percent in 2011 – the lowest level since 1995. 
• The Administration has announced the 2012-2017 Offshore Oil and Gas Development Program, which will open more than 75 percent of our potential offshore oil and gas resources.

Establishing Historic Fuel Economy Standards 

New Standards for Passenger Vehicles: Taken together, the Obama Administration’s standards for cars and light-duty trucks span model years 2011 to 2025 and represent the first meaningful update in over three decades. Under this program, average fuel efficiency will reach a performance equivalent of 54.5 miles per gallon by 2025 and will: 

• Save consumers $1.7 trillion at the pump – or roughly $8,200 per vehicle; 
• Slash oil consumption by 2.2 million barrels a day; that’s half of the oil we import from OPEC every day; 

The First-Ever Standards for Heavy-Duty Vehicles: The Administration has also finalized the first-ever national fuel efficiency and greenhouse gas (GHG) emission standards for heavy-duty trucks, vans, and buses spanning model years 2014-2018, which will reduce oil consumption by over 500 million barrels, and save truck owners and operators more than $50 billion in fuel costs. 

Protecting American Consumers and Energy Security 

Ending Wasteful Fossil Fuel Subsidies: The President’s FY 2013 Budget eliminates subsides for oil and gas companies that cost American taxpayers $4 billion annually and impede investments in cleaner sources of energy. 

The Oil and Gas Fraud Working Group: In March 2011, President Obama asked the Attorney General to work with federal and state agencies to monitor oil and gas markets for potential wrongdoing. As a result, the Oil and Gas Fraud Working Group was established at the Department of Justice to enforce state and federal law and safeguard against manipulation of oil and gas prices, collusion, fraud, or misrepresentations at the retail or wholesale levels that violates state or federal laws.

Help Middle Class Families: In February 2012, Congress extended the payroll tax cut that will benefit over 160 Americans. As a result of this agreement, the typical American family will still see an extra $40 in every paycheck, keeping about $1,000 of their hard-earned money this year. President Obama fought for this tax cut which will strengthen the economy and help middle class families confronting higher gas prices. That’s also why he’s pushing Congress to implement other policies, such as a housing plan to help responsible homeowners refinance and save about $3,000 a year, and fair tax policies to ensure that everyone gets a fair shot, everyone does their fair share, and everyone plays by the same rules.