Lisa Murkowski: “if this country is ever going to achieve the goal of reducing our dependency on foreign sources of oil to at least 50…”

“if this country is ever going to achieve the goal of reducing our dependency on foreign sources of oil to at least 50 percent, we are going to have to provide incentives that will encourage our energy industry to recover oil and gas from nonconventional sources. In the aftermath of the twin oil shocks of the 1970s, Congress enacted Section 29 of the tax code which provides a tax credit to encourage production of oil and gas from unconventional sources such as Devonian shale, tight rock formations, coalbeds and geopressurized brine. This credit has helped the industry invest in new technologies which allow us to recover large oil and gas deposits that are locked in various formations which are very expensive to develop. Since the Clinton-Gore Administration came into office, it has sent up various proposals all designed to eliminate the Section 29 credit. As a result of their efforts, the Section 29 credit has not applied to any facilities placed in service since July 1, 1998. That makes absolutely no sense when we realize that today we are 56 percent dependent on foreign sources of oil. Doing away with this credit sends a direct signal to the market--this country will not lift a finger to encourage energy development at home. I think it is time to reverse the failed energy policies of the Clinton-Gore administration.”