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Gas Prices Must Come Down!
05/25/04I know – from personally talking to so many of you – that I am not the only one experiencing sticker shock every time I pull up to the gasoline pump. Gas prices are at record-breaking highs – and prices are only expected to go higher as the vacation season kicks in.
Recently, I have tried to find out exactly what is contributing to this price surge. First, I believe we need to have an investigation into whether there is any price gouging by the major oil and gas companies. If there is any artificial price inflation -- at the expense of consumers -- it must be dealt with swiftly.
From the reports I have received, there are several factors contributing to higher gas costs. First, the environmental organizations in the this country have convinced many in Congress to impose unreasonable regulations on the types of gasoline made available. Because of this, gas prices have continued to rise. The national average was recently at a record $2.009 per gallon of regular unleaded gas.
Second, in the last 30 years, nearly half of all American refineries have shut down – mostly because of the expense and complications of complying with those strict environmental standards.
In 1982, 263 refineries were in operation nationwide, but 20 years later, only 159 were still running.
Today’s remaining refineries operate at near full capacity, but remain unable to meet our needs. So we must import refined petroleum products like gasoline, sending those refining jobs overseas and increasing prices.
Third, as I mentioned earlier, we currently import nearly two-thirds of our oil. And, in part, because of the Organization of Petroleum Exporting Countries (OPEC)’s restricted production, the price has soared to more than $41 per crude oil barrel. The Administration is asking OPEC to pump more oil, increasing our supply.
Keep in mind that Alaskan oil production is now half of what it was six years ago because of declining production from existing wells and resistance to opening new oil fields.
Vast Alaskan oil reserves could potentially provide America with at least an additional one million barrels daily. As a matter of fact, I have voted to start drilling in that region, but currently, there is a majority in Congress who oppose it. I believe they are out of touch with the majority of Americans.
One option the President has is the release of crude oil barrels from the Strategic Petroleum Reserve (SPR). This reserve’s current capacity is roughly 700 million barrels, which is set aside for times when there is sufficient need or a crisis. The current reserve is at a record 659.5 million barrels. The president has proposed and been authorized to increase the SPR capacity to 1 billion barrels, which would further protect our interests in the event an emergency disrupts future oil supply. However, because of the threat of terrorist attacks, the President has been reluctant to use this particular option.
We must also address the broader issue of energy. The comprehensive energy bill now before Congress is a commitment to alternative
energy production and would launch many initiatives to provide affordable energy. The House has fulfilled its promise to pass this legislation, however the United States Senate has yet to act on this.
It has been a dozen years since we passed a comprehensive national energy bill, and it is time for us to do it again with this bill. It is more than lowering gas prices, it is providing our nation with economic security.