Barton Announces Plans For Upcoming Hearings on Energy Prices WASHINGTON – U.S. Rep. Joe Barton, R-Texas, chairman of the House Energy and Commerce Committee, issued the following statement today on energy prices: “Daily life in America requires energy that is abundant, affordable and reliable. Having energy is fundamental to our prosperity. Not having it is disastrous. But the high cost of gasoline and other fuel is straining our wallets. “I have asked the Oversight and Investigations Subcommittee to immediately look into issues such as refinery outages and how oil companies determine where to invest profits. It troubles me that a CEO receives a $400 million retirement package while refinery capacity continues to lag behind demand in this country. “I also intend to hold hearings on demand for gasoline and supply availability, from the oil rig to the pump. Current law leaves nearly 100 billion barrels of oil out of reach in Alaska and off our East and West coasts. Until that changes, American families will continue to pay more than they should for gasoline. “One proposal a decade ago to allow exploration for Alaskan oil could have cut gasoline prices by 40 cents at the pump today. But it was vetoed after it passed both bodies of Congress. If inaction continues, who knows how high the cost of gasoline will soar in the next decade?  “The House-passed Gasoline for America’s Security Act of 2005 already includes the first federal legislation banning price gouging. “While we are working now to address supply issues, it’s important to remember that Congress has acted to promote an energy future that is less dependent on fossil fuel. The Energy Policy Act of 2005 is supporting alternative fuels and research and development of future technologies. Here’s what the government is doing now: Dedicating $3.7 billion for fuel-cell research with a goal of putting low-emission hydrogen-powered cars on the road by 2020. Requiring 7.5 billion gallons of ‘renewable’ fuel be available by 2012, primarily ethanol cooked out of corn, grass and agricultural waste. Supporting research to lengthen battery life and other technology for use in traditional and plug-in hybrid cars. In 10 years, some say, your 30-mile commute could be gasoline-free. Offering tax incentives to build new ethanol, hydrogen and other alternative fuel stations.” Why are gasoline prices so high right now? Changing gasoline blends are disrupting the supply chain. There are two transitions occurring right now. One, switching from winter to summer seasonal blends traditionally causes price spikes this time of year. Two, the Energy Policy Act of 2005 ends the federally mandated oxygenate requirement for some gasoline blends beginning May 5. Fearing exposure to MTBE lawsuits, refiners are abandoning MTBE and turning to ethanol instead. Addtion of ethanol to gasoline. The Energy Information Agency estimates that the switch from MTBE to ethanol is responsible for about an additional 5 cents a gallon in cost. Tariffs on ethanol imports add 54 cents to a gallon of ethanol. Reports forecast that we might need an additional 2 billion gallons of ethanol this year alone. Dependence on the Gulf Coast region. Tight supplies mean even one unscheduled refinery shutdown can drive up gasoline prices. In addition, 22.3 percent of Gulf Coast oil production is still shut down so we have 334,019 fewer barrels of domestic oil available on any given day. Supply and demand and global concerns. Our need for oil has grown, we face new competition from emerging economies like China and India, and domestic production and refining capacity haven’t kept pace. In addition, supply uncertainty from countries like Nigeria, Iran and Venezuela have caused crude oil prices to rise. Lack of domestic crude oil production. We are going to need much more oil before we ever kick our addiction to it. Unfortunately, current law leaves nearly 100 billion barrels of oil out of reach in Alaska and off our East and West coasts. Until that changes, American families will continue to pay more than they should for gasoline. At a time when we import most of our crude oil and, increasingly, gasoline, these restrictions also undermine the nation’s security and prop up authoritarians. Some in Washington have delayed relief. These problems took decades to develop and some environmental extremists have made matters worse. Had President Clinton not vetoed ANWR 10 years ago, we could be domestically producing 1 million barrels of oil today. More importantly, we would have a more diverse supply of oil production. The House passed a comprehensive energy policy to increase production and conservation four times before it was finally enacted last summer. ####