Golden, Johnson, Baird, Bacon Propose Bipartisan Plan to Boost Oil & Gas Production w/ Defense Production Act, Other Actions

WASHINGTON — With gas and home heating prices rising at near-record rates and necessary sanctions against Russia likely to drive prices higher, Congressmen Jared Golden (ME-02), Dusty Johnson (SD-AL), Jim Baird (IN-04), and Don Bacon (NE-02) today proposed a comprehensive, three-pronged, bipartisan plan to the Biden Administration to increase oil and gas production and help reduce energy prices.

"By making a multi-year purchasing commitment to increase supply in our Strategic Petroleum Reserve, employing DPA authorities to expedite and expand domestic oil and gas production, and convening top oil producers to identify and address other barriers to production, " wrote Golden and his colleagues, "you can prioritize our nation's energy independence and reduce domestic energy prices while blunting the impact of President Putin's efforts to use Russian energy exports as leverage against European and American sanctions."

In the proposal to President Biden, Golden and his fellow lawmakers lay out three actions the administration should take today to boost oil and gas production in America.

1. Announce a three-year purchase commitment for American oil and gas: This commitment would provide needed certainty for oil producers and markets. Purchased oil and gas could be put directly on the market or be placed in the Strategic Petroleum Reserve to ensure the nation has ample supply.
2. Invoke the Defense Production Act: The Defense Production Act allows the president to expedite and expand the supply of materials and services, including energy, needed to promote national defense and security. During the COVID-19 pandemic, the DPA was shown to be an effective way to dramatically increase domestic production during a very short period of time. Golden and his colleagues' plan calls for the administration to incentivize large scale private sector investment by providing subsidies and loans to access the raw materials, equipment, and facility enhancements necessary to rapidly boost production.
3. Convene a Producers' Summit: Golden and his colleagues' plan calls for an immediate White House summit with executives of American oil and gas producers to identify and address the current challenges to raising output. The summit would make clear that the federal government is serious about its commitment to reducing costs for consumers and to protect producers in a volatile global market and allow coordination and collaboration among top producers for the national interest.

"With the national average of the price of gas nearing five dollars per gallon, it is clear that Americans need immediate relief from high gas and energy prices," continued the lawmakers. "We urge you to use the authorities currently at your disposal to expand and expedite domestic energy production and protect American consumers from future harm resulting from strong sanctions against Russia. Doing so will help maximize domestic production now and minimize our dependence on foreign energy into the future."

The text of Congressman Golden and his colleagues' proposal can be found here.

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