Prices at the Pump Prove Need for New Energy Policy

Prices at the Pump Prove Need for New Energy Policy
By Tom Cole
March 29, 2004

The Daily Oklahoman reported last week that the national average price of gasoline climbed to a record high Tuesday, and industry observers say they expect prices to push even higher this summer. Although, Oklahoma has the lowest statewide average in the country at $1.60, the average cost has climbed nearly 7 cents since March 1 and prices are expected to continue to rise. It also reported that global demand has reached an incredible 80 million barrels of oil per day. This demand is straining the supply side's ability to make and deliver enough gasoline.
America thrives when energy is abundant and affordable. Without it, our economy, our jobs and the welfare of our people suffer. Energy is the lifeblood of our economy and it is very important that we send an energy bill to the President this year.

In 1982, 263 refineries operated throughout the country, only 159 were operating in 2002. Today, our remaining American refineries operate at nearly full capacity, yet are unable to meet our needs. We are currently importing refined petroleum products, such as gasoline and diesel fuel, to meet our energy needs. Importing causes prices to rise and sends American jobs overseas.

Today, we import nearly two-thirds of our oil, compared to only one-third at the time of the Arab oil embargo of the 1970s. And the price of that oil has soared to more than $35 per barrel, partly due to restricted production by Persian Gulf countries. According to the U.S. Department of Commerce, America loses 12,389 jobs for every billion we spend on imports. At today's oil prices that is 1.7 million jobs overseas for oil every year.

Due to declining production and an unwillingness to open new oil fields, Alaska is producing 50 percent less than in it did in 1998. There are vast reserves of oil in Alaska, which could provide America with at least an additional million barrels per day. We would not have to choose between a clean environment and energy production-we can do both. The fears associated with exploring resources were completely debunked by the Clinton administration study, "Environmental Benefits of Advanced Oil and Gas Exploration and Production Technology," which found modern extraction methods actually improve the environment rather than harm it.

Petroleum, of course, is not our only energy concern. The comprehensive energy bill now before Congress makes a commitment to alternative energy production and would launch numerous initiatives to provide abundant, affordable energy in America. Although the House of Representatives passed the Energy Policy Act of 2004 (HR 6) on November 18, 2003, the Senate has not considered the legislation yet. The bill has stalled because of obstructionist politics and thus has not been able to garner the 60 votes it needs to pass in the Senate.

Majority Leader Tom DeLay has recently named me to the House Energy Action Team (HEAT). This task force, which builds on the work of the Task Force For Affordable Natural Gas (TFANG), understands the importance of passing a comprehensive energy package this year. With the prices of gas and the cost of oil steadily increasing, we must do something to ensure affordable energy now and for years to come. It has been a dozen years since we passed a comprehensive energy bill. It is time Republicans and Democrats pull together - not apart - and pass a comprehensive energy bill that will lower gasoline prices and protect Americans and their jobs. Done right, we can produce hundreds of thousands of new jobs. It's time to work together in our common interests to lower gas prices.