June 16, 2008

A Word from Zach Wamp

Supply and Demand

Now that gas prices have increased to more than $4.00 a gallon, Congressional Democrats are finally realizing that the basic economic principle of supply and demand is real. World demand for oil is growing, while supply has remained fairly level, causing the price to skyrocket. Ironically, in response the majority party in our own Congress is asking other countries to increase supply while opposing such increases at home. But there’s another way: It’s time to let American companies produce American energy for American consumers.

The public doesn’t want empty promises, they want solutions. Words are cheap, but votes matter. Since first coming to Congress, I have voted to increase sources of American energy two dozen times. In 1995, one of these votes was for a bill to permit drilling for ANWR’s estimated 10.4 billion barrels of oil, but President Bill Clinton vetoed the legislation and kept these barrels off the market. As recently as 2006, I voted to support the opening of ANWR and offshore drilling, which with today’s technology could be done with minimal risk to the environment. But the Democrat leadership hasn’t allowed any votes this Congress that would increase domestic energy supply. While advancing alternative energy sources and encouraging more efficient vehicles is a critical part of the solution, the proposals brought by this Congress thus far have ignored the central tenant of increasing domestic supply, which can have a more immediate impact on gasoline prices.

We can only help lower the price of gasoline by implementing an “all of the above” approach that increases American-made energy, decreases our dependence on foreign oil and creates jobs here at home in the process. This includes opening new domestic oil refineries and domestic energy reserves, allowing energy development on the Outer Continental Shelf and in ANWR and encouraging, but not mandating, the use of alternative energy sources.

Congress has determined that the vast energy resources off our coasts are off-limits to drilling. But China certainly recognizes these resources, and through an agreement with Cuba, has a permit to drill about 50 miles off the coast of Florida. Why can’t U.S. companies do the same? According to the U.S. Minerals Management Service, the restricted area contains perhaps 86 billion barrels of oil and 420 trillion cubic feet of natural gas. This is 10 times as much oil and 20 times as much natural gas as the United States uses in a year.

The world needs to see us proactively moving toward energy independence and the best way we can do it is to deploy the technologies and capitalize on our free-enterprise system to solve these problems. We must continue to invest in next generation vehicles to decrease our petroleum consumption.

Two new approaches that have real promise for fuel efficiency and reducing gasoline use are biofuels and plug-in hybrids. Renewable biofuels, such as cellulosic ethanol from switchgrass and biodiesel from natural oils like soybean oil, benefit American farmlands in rural areas, our national energy security and the environment. Plug-in hybrid vehicles should be more widely available around 2010 and will be charged with a regular power outlet, helping displace the amount of petroleum used for transportation. However, if the vehicles of the near future are powered by electricity, we need to support a bold resurgence of nuclear energy to meet the increased need.

As for addressing demand, we all have the power to become more energy efficient and lower our own energy costs through conservation. Conservation is not for wimps, it’s for warriors. While not everyone will wear the uniform of our armed forces, everyone can protect our country’s freedom by lessening our dependence on foreign oil.

People all around the country have been feeling the pain at the pump and often complain about gas prices, yet they continue to send some people to Congress that consistently vote against producing energy here at home. We need representatives in Congress who will vote for more energy supply. Americans know we can solve the problem of high gas prices, but we have to decide that we’re serious about doing it and increase the supply of U.S. energy.

 

 

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