Wicker: Energy Bill Critical to Economic, National Security
WICKER: ENERGY BILL CRITICAL TO ECONOMIC, NATIONAL SECURITY
By Congressman Roger F. Wicker
April 25, 2005
Many Americans were encouraged last week when one energy analyst said that the price of gasoline could drop by 25 cents per gallon this summer, predicting "the worst is over for the first half of 2005." While a decline in prices certainly would be welcome news, the long-term prospects for stability and lower costs remain at risk as long as the country continues to depend heavily on foreign energy sources.
The U. S. House of Representatives addressed this threat to our economic and national security by passing a comprehensive energy bill. The Energy Policy Act of 2005 will not lower gasoline prices overnight, but it can put the country on a path toward energy self-sufficiency. The package includes incentives to produce more oil and gas in the U.S. and promotes greater conservation and efficiency.
GAS PRICES HAVE BEEN HIGHER
A panel of economists reported that while high energy prices have had "some impact," the U.S. economy should continue to expand at a solid pace. There is no doubt that the recent increases have been a jolt to the family budget, but analysts note that gasoline costs in 2005 are still low when measured against the historical record of pump prices in recent years. When adjusted for inflation, motorists in 1981 paid the equivalent of $2.86 for a gallon of gasoline.
Consumers spent six percent of disposable income on energy-related costs in 1981 compared to 3.5 percent today.Gas prices are high because there is a restricted supply and little spare capacity worldwide. Adding to the problem is the alarming increase in demand from the rapidly expanding economies in China and India. The Organization of Petroleum Exporting Countries has boosted production but is already pumping two million barrels a day over its quota. The cartel is not bound by any agreement on production levels and could reduce its output at any time, an action over which the U.S. has little influence.
EXPLORATION, CONSERVATION MEASURES INCLUDED
These growing energy uncertainties make it imperative for Congress and the President to act now. The energy bill would expand domestic oil and gas production with emphasis on more efficient and environmentally-friendly exploration practices. It would streamline the regulatory process that has hampered the restart of idle refineries and construction of new ones. The bill also requires that five billion gallons of renewable fuels be included in gasoline sold in the U.S. by 2015. The move is expected to save 1.3 billion barrels of oil.
Conservation measures receive high priority, including new energy efficiency standards for federal buildings as well as commercial and household products. The bill contains incentives to accelerate the use of fuel cells, alternative fuels, and hybrid technology. Included is a program to get hydrogen fuel cell vehicles on the road by 2020. This promising technology converts hydrogen fuel and oxygen into electricity and is emission-free. There is also funding for state and local governments to acquire fuel cell and hybrid vehicles.
ELECTRICITY, RENEWABLE SOURCES IMPORTANT
Other provisions are designed to ensure the reliability of the nation's electricity grid, encourage more nuclear power production, provide incentives to promote clean coal technology, and develop renewable energy sources such as biomass, wind, solar, and hydroelectricity.
Foreign sources of oil account for 62 percent of our nation's supply in 2005, and that number is expected to jump to 75 percent by 2010. Enactment of this comprehensive energy bill will put the U.S. on track toward reversing this disturbing and dangerous trend.
http://www.house.gov/wicker/WickerEnergy.htm