Fuel crisis just a problem of politics

By Richard Pombo, KRT Campus

America thrives when energy is abundant and affordable. Without it, our economy, our jobs and the welfare of our people suffer.

While being the No. 1 consumer of energy, the United States also is the No. 1 producer of the world’s goods and services. Americans use energy efficiently. We are the breadbasket of the world, the heart of the technological revolution and the principal defender of freedom—none of which is possible without abundant, affordable energy.

Unfortunately, as we Americans know, energy is becoming too scarce and too expensive. We are paying record prices for gasoline. Those prices may well go much higher as we enter the summer driving season and face the temporary halt in production to change over to the array of summer blends mandated by Environmental Protection Agency.

There are 24 different blends of unleaded gasoline required by law for different states and different times of the year. If there is a shortage of gasoline in one area, gasoline can’t be interchanged easily between various parts of the country. Nationwide, nearly half of all American refineries have been shut down in the past 30 years and no new facilities have been built due to confusing environmental standards.

In 1982, 263 refineries operated throughout the country, only 159 were operating in 2002. Today, our remaining American refineries operate at nearly full capacity, yet are unable to meet our needs. This means we must import refined petroleum products, such as gasoline and diesel fuel, sending those refining jobs overseas and causing prices to increase.

Today, we import nearly two-thirds of our oil, compared to one-third at the time of the Arab oil embargo of the 1970s. And the price of that oil has soared to more than $35 per barrel, partly due to restricted production by Persian Gulf countries. At the same time, Alaska produces 50 percent less than in it did in 1998. This supply has dropped due to declining production from existing wells and an unwillingness to open new oil fields.

There are vast reserves of oil in Alaska, which could provide America with at least an additional million barrels per day. Luckily, we aren’t forced to decide between a clean environment and energy production—we can accomplish both.

The fears associated with exploring resources were completely debunked by the Clinton administration study, “Environmental Benefits of Advanced Oil and Gas Exploration and Production Technology,” which found modern extraction methods actually improve the environment rather than harm it.

As many Americans have learned the hard way, the oxygenate mandate for gasoline has compounded our energy woes.

First, it caused the fuel additive methyl tertiary-butyl ether to be blended with gasoline and that severely polluted ground water in many states. Some states, having banned that additive, are now forced by federal law to use ethanol in its gasoline. Since ethanol cannot be shipped through economical pipelines, motorists must get it by truck or rail or produce it locally, further raising gasoline prices.

Petroleum, of course, is not our only energy concern. In California, we are still haunted by the electricity shortages of 2001 and the resulting mismanagement of that crisis. It is a crisis that could well return since little has been done to address nationwide electricity production and transmission inadequacies. Congress has the power to resolve all these issues, but it has not.

The comprehensive energy bill now before Congress makes a commitment to alternative energy production and would launch numerous initiatives to provide abundant, affordable energy in America.

Sponsored by Sen. Pete Domenici, the bill has stalled because of partisan obstructionist politics. Thus, the legislation has not been able to garner the 60 votes it needs in the Senate.

It has been a dozen years since we passed a comprehensive energy bill. It is time Republicans and Democrats pull together—not apart—and pass a comprehensive energy bill that will lower gasoline prices and protect Americans and their jobs. Done right, we can produce hundreds of thousands of new jobs. It’s time to work together in our common interests to lower gas prices.

— Richard Pombo, R-Calif., is chairman of the House Resources Committee. Responses may be sent to collegian@csufresno.edu