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'Oil prices are everybody's problem'

By Andrew Mackie, Hickory Daily Record

Hickory, Jul 8 -

Hickory Printing Group executive Jeff Hale has watched freight costs double at his company during the past 12 months.

Paper costs also have spiked for five straight months.

“That’s a dramatic impact on the company,” Hale said.

Hickory Printing is one of thousands of companies in the state and nation struggling to adjust to the impact of soaring gas prices.

Hale fears gas prices have led to an ongoing recession, along with the impact of inflation.

“That’s a very tough combination,” he said.

Hale and other Hickory Printing officials attended a news conference Monday regarding the energy crisis hosted by U.S. Rep. Patrick McHenry. Officials from Transportation Insight, a Hickory-based transportation and freight management consulting company, and Von Drehle Corp. also attended.

Paul Thompson, Transportation Insight chief executive officer, said the company’s clients feel the pinch.

“Oil prices are everybody’s problem,” he said, warning of a disastrous impact long-term on families. “People desperately need help and are open-minded to alternatives of what they are doing today.”

The furniture and textile industries have been hit especially hard, Thompson said.

McHenry argues the global demand for energy will continue to increase due to the rising middle class in India and China. By 2020, China will match the current U.S. oil consumption rate of 20 million barrels per day, McHenry said.

“The cost of gas is pushing family budgets to the brink and threatening the viability of local employers,” McHenry said. “Congress can and must take action now to lower prices and rapidly move us toward energy independence.”

McHenry said the country currently holds the resources to become energy independent. There are more than an estimated 116 billion barrels of recoverable oil available from domestic resources, he said, including those from Alaska and off shore along the Continental United States.

Opponents argue of the environmental dangers of increased drilling, especially in Alaska’s Arctic National Wildlife Refuge, and that drilling undermines long-term energy solutions. They also point out any new oil resources would require seven years or more to reach the market, and the impact on gas prices is questionable.

McHenry also supports the use of oil shale and increased refining capacity. The Rocky Mountains contain the world’s largest oil shale deposits - an estimated 800 billion barrels - which is three times larger than Saudi Arabia’s proven oil reserves, he said.

McHenry argued Congress’ refusal to allow exploration and production of energy resources as costing the country jobs and tax revenue.

The Congressman also pushes for development of alternative energy sources and the use of nuclear power.

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