A Threat to Economic Recovery: Energy Prices

A Threat to Economic Recovery: Energy Prices
By Tom Cole
June 15, 2004

As the evidence of an improving economy keeps piling up, the greatest threat to the recovery is rising energy prices. Prosperity in the United States is closely tied to the availability of affordable supplies of energy. Fortunately in Oklahoma, because we produce so much energy, the higher prices benefit our state economically. But, as a country, to meet our growing needs, we must continue to address rising energy prices. The President has made National Energy Policy one of his top priorities and the House has passed three energy plans in three years. Obstructionists in the Senate have prevented each one from reaching the President's desk. This week the House will consider energy legislation for the fourth time and it is absolutely vital that the Senate follow suit. We must finally send a sound energy policy to the President.
Many Americans don't follow politics in Washington, but they start looking when gas prices top $2.00 per gallon at the pump. Since 2001 when President Bush asked Congress for a energy policy, the price for a gallon of gasoline has increased by 52 percent. U.S. oil imports have increased by more than 10 percent. In that time, the average price of a gallon of gasoline has increased by more than 50 percent, from $1.34 per gallon to more than $2.05 today; the cost of home heating oil has increased by 33 percent; and the cost of natural gas to heat America's home has skyrocketed by 92 percent.
As fuel prices continue to rise, some in Congress have found it politically expedient to criticize the Bush Administration for its failure to address energy policies. But, the record proves otherwise. If it were not for a few obstructionists in the Senate, we would be three years closer to meeting our short- and long-term energy needs. We would have provided greater funding for research into alternative energy sources and Americans would be finding jobs producing energy resources at home.
Alan Greenspan has repeatedly testified that energy prices are the single greatest threat to job creation. He said, "It is essential that we do not lose sight of the policies needed to ensure long-term economic growth. One of the most important objectives of these policies should be an assured availability of energy. …[D]evelopments in energy markets will remain central in determining the longer-run health of our nation's economy."
Voting "NO" in the Senate is not an energy plan for America. The House-passed energy bill (H.R. 6) balances the need for more domestic energy production with commonsense goals for conservation. H.R. 6 also provides for an unprecedented increase in renewable sources of energy, such as wind, solar, geothermal, biomass, and hydroelectric power. This comprehensive energy policy will allow America to become more competitive. It will allow us to produce more of our energy domestically, instead of relying on unstable foreign countries.
Our energy supply grows more precarious every day. It's time to end the politics of obstructionism in the Senate. It's time for Congress to finally start saying "yes" to a comprehensive national energy policy. The House is poised to do just that for a FOURTH time this week. The Senate must follow suit.
Congressman Cole is an appointed member of the House Energy Action Team (TEAM) and the Task Force for Affordable Natural Gas (TFANG).