Keeping the Fuel Flowing from the Gulf: Are We Prepared for the Hurricane Season?

"Keeping the Fuel Flowing from the Gulf: Are We Prepared for the Hurricane Season?"

Last year, Hurricanes Katrina and Rita provided the government and energy industry a painful education. Emergency communications systems were rendered inoperable. The electric power on which refineries and pipelines depend was unavailable for far longer than baseline scenarios predicted.

We were also made acutely aware that although we have the Strategic Petroleum Reserve of crude oil, we don't have strategic reserves of refined fuels such as gasoline and diesel. I remind everyone that following Hurricane Katrina, I introduced a bill, HR 4043, to have the National Academies of Science study the feasibility of creating a strategic gasoline reserve.

The lessons of 2005 go far beyond a "wake up call." Not only should we "Expect the Unexpected," but we should be "Prepared for the Unimaginable." Anything less could be catastrophic. Besides the extraordinary and tragic human toll of two "100-year" storms in the same season, we are left with almost $3 per gallon average gasoline prices entering the 2006 hurricane season. The production of petroleum and natural gas in the Gulf of Mexico is just now getting back to normal levels. Petroleum refining capacity was already stretched to the limit before the hurricanes of 2005. The importance of the Gulf to the US cannot be overstated-it is the energy "breadbasket" for the nation. For the 2006 hurricane season, NOAA forecasts that it will be "above average" in activity. One noted forecaster has calculated that there is an almost 40 percent chance of the area from the Florida panhandle to Brownsville, Texas, being hit by a Category 3, 4, or 5 hurricane in 2006.

Bearing this in mind, it is critical that we assess government and industry preparedness efforts to keep critical fuels flowing from the Gulf of Mexico to the rest of the country. Spiking fuel prices are of grave concern, but even high prices pale in comparison to the consequences of widespread fuel shortages.

During the crisis after Hurricane Katrina, parts of the country were within hours of running short of critical fuels. It was only through the ingenuity and determination of government and industry personnel that a fuel crisis was averted and the US economy did not grind to a halt. Much was learned from the events of the past year. It is imperative that the lessons learned be applied in a systematic manner. Government and the energy industry must closely coordinate their preparedness and response efforts.

In short, are the federal government and industry prepared to keep the fuel flowing from the Gulf this hurricane season? The answer to this question must be in the affirmative-and it must be answered in actions and not only words. Today we have experts from the government, industry, and the marketplace to help answer this overarching question. I look forward to hearing from all of you today.

http://reform.house.gov/UploadedFiles/Hurricane%20Preparedness%20Opening%20Statement%20-Public.pdf