Straight Talk on High Gas Prices

Press Release

"Straight Talk on High Gas Prices"

At gas stations across Florida, the consequences of our addiction to foreign oil are becoming painfully clear. Family budgets are being strained under the weight of skyrocketing gas prices. Local farmers are struggling with the high cost of diesel. Small businesses are feeling the gas price pinch also, which has resulted in higher business costs and less money in the pockets of hardworking Floridians.

Gas prices have soared in recent months due to many factors, including the falling value of the U.S. dollar, a drastic boom in oil consumption by developing nations like China and India, and a tighter supply of oil. Gas prices have soared in recent years, however, because the U.S. has failed to develop a balanced, forward thinking approach to our energy needs.

Unfortunately, no silver bullet solution will immediately lower gas prices, and those who think drilling directly off Florida's coast is the answer may not have all the facts. History has shown that drilling alone will solve neither our short term nor our long term energy problems. Since 2000, drilling has increased dramatically—climbing about 66 percent—while gas prices also have increased, from $1.47 per gallon in 2001 to the current price of over $4 per gallon.

But don't get me wrong—domestic oil and gas exploration should be a component of any multifaceted energy plan; it just can't be the only component, and it must be done responsibly. In 2006, I supported allowing oil and gas exploration in a 5.9 million acre-area in the Gulf of Mexico, 125 miles off the coast and outside the military mission region. The area is known to have about 1.26 billion barrels of oil. This agreement struck a balance between those who want to build oil rigs directly off our shores and those who want to protect our beaches and Florida's billion dollar tourism industry. At the same time, this agreement maintained the military training areas in the gulf, which are critical to Tyndall and Eglin Air Force Bases.

I also support opening up areas of the Arctic National Wildlife Refuge (ANWR) in Alaska to drilling. According to the U.S. Geological Survey, ANWR could hold between 5.7 and 16 billion barrels of oil.

However, proponents of drilling must realize that oil deep in the ground has no direct link to today's gas prices. While we have seen a significant increase in domestic drilling in the past few years, it will take about 10 years for this oil and gas to reach the market. Also, the long term effects of increased domestic drilling are dubious. According to a recent study by the Energy Department, additional oil production resulting from the opening of ANWR would be only a small portion of total world oil production and would likely only bring oil prices down by 75 cents a barrel, which is currently at a staggering $131 a barrel.

The bottom line: we cannot drill our way out of the energy crisis. We must develop a long term plan that makes us less dependent upon foreign nations for our energy needs.

This Congress is making some inroads in this effort by implementing short term solutions to bring down gas prices and by working towards a long term strategy to make our nation energy independent. For example, in May, I voted to temporarily suspend the filling of the Strategic Petroleum Reserve (SPR), the nation's emergency supply of crude oil. The SPR is already at 97 percent capacity. Experts have concluded that by stopping shipments to the reserve we can add 70,000 barrels of oil a day back into the market, which is estimated to reduce gas prices from 5 to 24 cents a gallon.

Also, my fellow Blue Dogs and I have outlined key energy principles that offer a comprehensive approach to our nation's long term energy policy. The principles focus on domestic energy production, renewable energy sources, and technology development. These principles recognize that, when it comes to our energy policy, we must look at all the pieces of the puzzle.

As we work to combat high gas prices and establish a long term energy plan, we also must recognize the role of the private sector in this effort. Our energy crisis is a supply and demand problem. While the government can provide incentives for the private sector to develop alternative energy and energy efficient products, the private sector, not the government, ultimately will bring stability to the market. Also, we must work to improve our economic outlook. Oil is priced in U.S. dollars, and as the price of the dollar increases in value, the cost of oil will go down.

In the end, there are many challenges and opportunities before us when it comes to our energy needs. The answers may seem overwhelming, but we have the tools to regain control of our energy future if we utilize our greatest resource: the innovative spirit of the American people. The energy crisis requires all of us working together toward a comprehensive plan that addresses our immediate energy problems and ensures that our energy needs are met for generations to come.

Source