Fortenberry Supports Energy ReformHouse Agriculture Committee Takes Up Gas Prices

Washington D.C. - Congressman Jeff Fortenberry today joined his House Agriculture Committee colleagues for a hearing on Gasoline Prices and Future Markets. Fortenberry issued the following statement:

Its tough out there. High energy prices are taking a toll on families, farmers, and small businesses. We are all affected.

Thats why the House Agriculture Committee met today to examine some of the reasons for recent price hikes.

There appear to be three primary factors. First, gas prices are almost directly tied to crude oil prices. Crude oil prices are being affected by political insecurity in the Middle East and South America. Also, worldwide demand for oil is very high due to growing markets in China and India.

Second, the pollutant MTBE is being replaced as a gasoline additive by ethanol. This is good news for Nebraska. The process of a nationwide transition, however, is causing temporary complications.

Third, American oil refineries are operating at near full capacity. Remaining damage to U.S. refineries from Hurricane Katrina and temporary maintenance shutdowns are furthering supply pressures.

For relief in the short term, I believe the President should be authorized to limit the use of boutique fuels. These are custom-made blends that effectively slow down the distribution process and lead to higher gas prices. Limiting boutique fuels in the aftermath of Hurricane Katrina helped control fuel costs.

In the long term, the Energy Bill enacted last year makes a commitment to conservation and renewable sources, such as ethanol, biodiesel and wind, as well as hydrogen technology that will be good for consumers and Nebraska agriculture.

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