Mr. Chairman, thank you for calling this hearing on the Energy Information Administration's 2006 Annual Energy Outlook. Mr. Caruso, it is good to see you again, and I want to thank you for all the work that you and your staff have done to prepare the 2006 Energy Outlook. My colleagues and I rely on this information as we propose and consider legislation, and the EIA's well-researched analyses are always useful and timely tools.
As you know, Hawaii's energy situation is unique for several reasons, not the least of which is the state's almost complete dependence on petroleum for its electricity and gasoline. Hawaii depends on imports to meet almost all its energy needs, which means that our energy costs are among the highest in the nation. For over 20 years, our state has had the highest average gasoline prices in the nation.
Rising gasoline prices and energy dependence are not problems unique to Hawaii, of course. This is a national problem, and as President Bush stated in his State of the Union address, it is made worse by the fact that we are a nation that is "addicted to oil." When I examine the EIA Energy Outlook for 2006, I am struck by the increases in oil consumption that are projected for the next year. For 2006, your report indicates that world oil demand is expected to increase from 83.7 million barrels per day to 111 million barrels. As demand for oil increases, so does production from our resources. Unfortunately, the one thing that does not seem to be increasing at the same pace is our supply.
I believe it is critical that our nation makes it a priority to find and promote alternative energy sources. I have worked with my colleagues on a variety of initiatives to move our nation in this direction. Last year, Senator Murkowski and I sponsored the reauthorization of the methane hydrates program. I also sponsored a variety of initiatives that were included in the Energy Policy Act. I am hopeful that through these and other initiatives, our nation will begin to move away from its energy dependence, and instead become a world leader in innovative new energy strategies.
I am looking forward to getting more details on the EIA Outlook, and I have some questions that I will ask during the question and answer period. Thank you Mr. Chairman.
