July 19 (Bloomberg) -- President George W. Bush intensified pressure on Congressional Democrats to end an offshore drilling moratorium, saying lawmakers have closed off ``vast'' oil reserves that could be tapped to lower record gasoline prices.

``The sooner Congress lifts the ban, the sooner we can get these resources from the ocean floor to the gas pump,'' Bush said today in his weekly radio address. ``Democratic leaders need to show that they have finally heard the frustrations of the American people.''

Bush on July 14 lifted a presidential ban on drilling in the Outer Continental Shelf and called on Congress to remove its own moratorium. Areas currently off-limits could hold 17.8 billion barrels of oil, according to the U.S. Interior Department.

Congressional Democrats reject the idea that more offshore drilling could bring down record energy prices, with House Speaker Nancy Pelosi calling it ``a complete hoax.'' The issue has also divided the presidential candidates, with Democrat Barack Obama opposing an end to the moratorium, and Republican John McCain supporting more drilling with the consent of states.

``The only thing now standing between the American people and the vast oil resources'' of the Outer Continental Shelf ``is action from the United States Congress,'' Bush, a Republican, said today.

Democrats who control Congress say more drilling will do little to bring down the price of gasoline, which rose as high as $4.11 a gallon last week, and have placed more emphasis on encouraging alternative energy sources and conservation.

Democratic Response

``There's a major difference between Democrats and Republicans on energy: Bush-McCain Republicans haven't come up with anything more than drill, drill drill,'' Senator Patty Murray of Washington said in the Democratic Party's weekly radio address today.

Record fuel prices are affecting most Americans, according to a Los Angeles Times/Bloomberg poll of 1,233 adults from June 19 to June 23. Seven in 10 of those surveyed said higher gas prices have caused them ``financial hardship.''

House Republicans are going to Alaska's Arctic National Wildlife Refuge this weekend as part of a trip to highlight the need for more domestic energy production.

House Democrats failed to get the two-thirds majority they needed on July 17 for legislation that would ban oil exports from Alaska, require drilling on existing leases, and speed lease sales in a separate petroleum reserve in Alaska.

Strategic Reserve

This week, the House may take up legislation that would release 10 percent of the oil in the Strategic Petroleum Reserve. Legislation halting deliveries to the reserve, which currently holds 706 million barrels of oil, was approved in May by a veto-proof majority in Congress.

Senate Majority Leader Harry Reid of Nevada says he may begin debate July 22 on legislation that would require more transparency in energy futures markets and impose limits on speculation.

In his radio address, Bush also repeated his call for Congress to enact his administration's plan to strengthen Fannie Mae and Freddie Mac, saying the biggest providers of financing for U.S. home loans play a ``central role'' in the nation's housing finance system.

``We must ensure that they can continue providing access to mortgage credit during this time of stress in the financial markets,'' Bush said.

Treasury Secretary Henry Paulson on July 13 asked Congress for authority to buy equity stakes in Fannie Mae and Freddie Mac and increase the government's credit lines to the companies.

Regulators are aiming to restore confidence in the firms after their shares fell to the lowest level in more than 17 years this month, threatening to limit their ability to alleviate the mortgage-market collapse.

Bush also urged Congress to pass legislation strengthening the independent regulator of the firms, overhauling the Federal Housing Administration and allowing state housing agencies to issue tax-free bonds to refinance subprime loans.

To contact the reporter on this story: Tina Seeley in Washington at tseeley@bloomberg.netHolly Rosenkrantz in Waco, Texas at hrosenkrantz@bloomberg.net

Last Updated: July 19, 2008 13:23 EDT