Seizing the American Energy Revolution
The average price of gasoline has fallen to well below $3.00 per gallon in Nebraska, and for the nation as a whole. The dramatic drop in price is due to an American energy revolution which is thriving despite federal policy, not because of it.
New drilling techniques and technology have made it possible and economically viable to extract oil from previously unavailable reserves. Because of these advances, oil production in the United States has surged even though the Obama Administration has pursued an agenda to reduce the use of traditional fuels. The United States is now among the world’s largest producers of petroleum, and our dependence on foreign oil is dropping dramatically.
The massive increase in American oil production has increased global supply, helping to keep up with demand, resulting in price drops which benefit consumers at the pump. The drop in fuel prices also has profound implications for manufacturing, agriculture, and in reducing the transportation costs built into almost everything we buy.
While these changes are very positive, there is great potential to do more. The federal government should open more federal lands and waters to drilling. We also need to expand our energy infrastructure including the approval of more pipelines. A recent report by the U.S. Energy Information Administration (EIA) estimates U.S. oil production could be 1.5 million barrels per day higher if America had greater oil-by-rail and pipeline capacity.
The most high profile pipeline project waiting approval is the proposed Keystone XL pipeline to connect oil production in Canada and North Dakota to refineries on the Gulf Coast. The President has not made a decision regarding this project for more than six years even though it would encourage American energy, create thousands of jobs, and according to the State Department would not have a significant environmental impact.
Last month, the House of Representative approved, with my support, H.R. 5682 to authorize the construction, connection, operation, and maintenance of the Keystone XL pipeline. Despite bipartisan support, Senate Democrats failed to pass the companion bill, once again delaying this project.
As we enter the 114th Congress, action should support energy policies which most benefit Americans. Finding solutions to keep the cost of energy and our nation's dependence on foreign oil low must be a priority.
