This is a rush transcript from "Your World With Neil Cavuto," August 6, 2008. This copy may not be in its final form and may be updated.
NEIL CAVUTO, HOST: Meanwhile, the energy crisis, some say it is solved? Well, forget Congress. Would you believe that Paris Hilton might have the answer to America's energy crisis?
CAVUTO: I want you to take a look at this.
(BEGIN VIDEO CLIP)
PARIS HILTON, ACTRESS: OK. So, here's my energy policy. Barack wants to focus on new technologies to cut foreign oil dependency. And McCain wants offshore drilling. Well, why don't we do a hybrid of both candidates' ideas? We can do a limited offshore drilling, with strict environmental oversight, while creating tax incentives to get Detroit making hybrid and electric cars. Energy crisis solved.
(END VIDEO CLIP)
CAVUTO: I just want to say officially on this show, I want to make Paris Hilton president of the United States, because, clearly, she gets it. Why can't Congress?
From the star of "A Simple Life," a very simple, alarmingly, deceptively simple solution: Drill now until all of those fuel-efficient cars are ready.
With us now, Democratic Congressman Frank Pallone of New Jersey, who opposes additional offshore drilling.
Congressman, Paris Hilton gets it. Why don't you?
REP. FRANK PALLONE (D), NEW JERSEY: Well, I think the Paris Hilton ad was funny, but the bottom line is that the Democrats have tried over and over again to pass legislation that would allow for more drilling, that would basically allow the Strategic Petroleum Reserve to be used to try to bring down lower prices.
And the Republicans have simply refused to vote for any of these things that would achieve energy independence.
CAVUTO: All right. When you say allowed for more drilling, Nancy Pelosi skipped town and started your five-week recess, specifically forbidding a vote on more drilling.
PALLONE: Well, the -- what we have said is that, right now, a number of the oil companies have about 80 percent of the reserves that are out there that could be drilled. And we have said let them drill on those leases that they now have, be they offshore or on land.
CAVUTO: So, you go -- you go back to that...
PALLONE: And, if they don't, then...
CAVUTO: All right, Congressman, you go back to that same...
PALLONE: ... you know, then they lose their lease.
CAVUTO: All right. You go back to that same canard. I don't want to debate that.
What I want to go back to here is this notion -- Paris gets it -- Barack Obama, by the way, lately, seems to get it -- be open for drilling. Be open for these alternative energy forms. Be open for conservation. We can all fill our tires, I guess, do all that stuff, but be open to it all. Jump ball, have at it, everyone decide that all of the above works for us, and don't pick and choose what you like or don't like. Just do everything.
PALLONE: Well, the problem is that almost everything that you've mentioned, Nick (sic), has been tried by the Democrats and put up as legislation to move, and the Republicans have simply not allowed it to pass, and have voted against it, whether it's...
CAVUTO: When have you wanted to -- wait, wait, wait. No, no, no. When have you wanted to expand drilling beyond what it is now? Update me.
PALLONE: No, we don't want to drill into those offshore areas that are environmentally sensitive. That's certainly true.
But something like 82 percent of the offshore sites now could be drilled with the leases that the oil companies currently hold. And what we're saying is, if they don't drill, they lose their lease.
CAVUTO: All right, now, I'm going to tell you -- you know what I'm going to do, Congressman? I respect you and all, but I'm going to tell you this once, and only once, because I think we go around in circles talking on this issue.
The leases that are out there, many would happily turn in for more promising leases at a moment's notice, and have begged Congress to provide them that wherewithal to swap out the leases.
PALLONE: No, I don't think that's true. I think that they don't want to drill, because they want the price to go up.
CAVUTO: All right, they don't want to.
By the way, one thing I do know about companies, Congressman, they love to make money. And if they can dig up more oil to make more money...
PALLONE: But they are making money hand over fist. And the problem is that they won't drill, because they like the fact that...
CAVUTO: OK. They -- they -- right -- they...
PALLONE: ... that it's scarce, and that they can charge more.
CAVUTO: If it's -- if it's a -- if it's a commodity that you argue we're running out of, and -- and they know they're running out of it, then something tells me it would behoove them to get more of that commodity, so they can keep making money.
But that's neither here nor there.
PALLONE: Well, I don't agree...
CAVUTO: Congressman, what I want to ask you...
PALLONE: ... because, then, the price goes down.