| Now that Congress has recessed for the end of | | | | From 2000 to 2007 American oil companies |
| the summer, what are we to make of the | | | | increased the drilling of exploratory wells by 138 |
| energy situation? At this point, I'm getting tired of | | | | percent (on those 68 million acres of existing |
| hearing that $4.00 gasoline is good for me. How | | | | leases); oil production still fell to its lowest level |
| can it be good when Americans are spending less | | | | since 1947. The American Petroleum Institute |
| of their money on other goods and investing in | | | | reported that oil companies had the highest |
| their gas tanks? Is it good that transportation | | | | second-quarter oil well activity since 1986. |
| costs have sent my food bill sky rocketing? Is it | | | | The United States has successfully developed |
| good that many Americans have shortened their | | | | other forms of energy; clean coal plants, nuclear |
| vacations and cut back on their entertainment | | | | power, natural gas plants, solar & wind |
| spending? Is it good that the working poor are | | | | energy. Our most efficient and cheapest forms of |
| struggling between putting groceries in their home | | | | energy production are under constant assault |
| and fueling their cars to get to work? | | | | from the environmental movement. The U.S. uses |
| Apparently our Congressional leaders and one | | | | 760 gigawatts of power plants to meet current |
| presidential candidate say the answer is yes. While | | | | needs. The North American Electric Reliability |
| our Speaker of the House is trying to "save the | | | | Corporation (NERC) estimates that we will need |
| planet", the rest of the world is out trying to find | | | | 135 gigawatts of new capacity in the next 10 |
| more oil & energy. Let's look at few recent | | | | years. As of now, only 57 gigawatts of power |
| examples: | | | | plants are planned. Why? |
| - Egypt announced last week the start of a 9 | | | | - 59 coal-fired plants were canceled in 2007 |
| billion dollar oil refinery and petrochemical complex, | | | | because of anticoal activist. |
| which will be located on its north coast. The | | | | - U.S. production of natural gas is beginning to |
| complex is expected to begin operation in 2010 | | | | decline because of environmental restrictions on |
| and will be completed in 5 years. The facility will | | | | exploration. |
| refine 350,000 barrels of oil per day. | | | | - The National Resources Defense Council (NRDC) |
| - The Tupi deepwater oil field is located offshore | | | | succeeded in stopping 13 natural gas power plants |
| of Rio de Janeiro, one of Brazil's best tourist | | | | in southern California. |
| destinations. Last November, the Brazilian | | | | We have the best scientist, engineers and |
| government announced that the location could | | | | technicians in the world. Give them the |
| contain five billion to eight billion barrels of oil. The | | | | opportunity to solve this challenge and they will. |
| Tupi oil field is expected to begin producing | | | | There are many private companies working on |
| 100,000 barrels of oil in 2010, according to | | | | new technology to bring to the market. If our |
| Petrobas, Brazil's national oil company. Petrobas | | | | government is going to pick winners and losers |
| hopes to bring production to one million barrels a | | | | through subsidies, many companies will not get |
| day in about ten years. | | | | into the market. |
| - Finland is building a 1600 megawatt nuclear | | | | For example, NuScale Power, an Oregon-based |
| power reactor. The country currently gets 28 | | | | startup company, is seeking federal clearance to |
| percent of it electricity from nuclear power. | | | | begin its project to build a mini nuclear reactor. |
| - Japan is working to increase its nuclear power | | | | The reactor can power 45,000 homes, is 65 feet |
| production of electricity from 30 percent to 37 | | | | long and has no visible cooling tower. NuScale |
| percent by 2009 and 41 percent by 2017. | | | | states that these reactors require no |
| Now, besides threatening to sue the Saudi's and | | | | maintenance and do not need to be refueled. At |
| adding more taxes to oil, what has the United | | | | the end of its useful life of about 30 years, the |
| States government energy policy done? Let's look | | | | plant is returned to the factory. |
| at a few examples: | | | | This type of technology should be welcomed and |
| - From 2000 to 2007 domestic crude oil | | | | encouraged by all. With a small footprint & no |
| production fell 12.4 percent | | | | carbon emissions, these plants could replace many |
| - Through a congressional mandate, 85 percent of | | | | traditional coal and gas-fired power plants. |
| the Outer Continental Shelf is off limits to oil | | | | This situation does not require a billion dollar bail |
| exploration. It is estimated that the Outer | | | | out from our government. Nor does it require |
| Continental Shelf contains 90 billion barrels of oil | | | | raising taxes on the oil companies. Remember, we |
| - The Artic National Wildlife Refuge (ANWR) is | | | | tried the windfall profits tax with President Jimmy |
| estimated to have 10 billion barrels of oil; in 1995 | | | | Carter. That led to a 6 percent drop in the |
| President Clinton vetoed a bill authorizing oil | | | | production of oil and a 15 percent increase in oil |
| production on 2,000 acres out of 19.6 million. | | | | imports, according to the Congressional Research |
| - U.S. Senator Ken Salazar, Colorado, inserted | | | | Service. |
| language into the omnibus spending bill last | | | | If congress would step back and allow all of the |
| December that places a moratorium on enacting | | | | energy companies to explore and develop energy |
| rules for oil shale development on federal lands. | | | | in a responsible way, we would not have to |
| The Green River Formation is estimated to have | | | | struggle with high energy costs. Take away all of |
| as much as 1.1 trillion barrels of oil shale. | | | | the subsidies and let the market decide which |
| - As mandated by the 2007 energy bill signed by | | | | means of energy is cheapest, environmentally |
| President Bush, the U.S. is now required to mix 9 | | | | sound and durable. American technology is more |
| billion gallons of biofuels into the gasoline supply. | | | | than capable of producing efficient energy and |
| The mandate is met primarily with corn-based | | | | protecting the environment. |
| ethanol. At the start of the biofuel mandates, | | | | Instead of trying to spend more of my tax |
| corn was $2 per bushel. The price of corn now is | | | | dollars, why doesn't congress spend more of their |
| a little over $6 per bushel. | | | | time, which we pay them for, to fix the |
| It seems the more our government gets | | | | regulatory landscape of energy production. |
| involved, the worse the situation becomes. And | | | | Congress needs to enact some common sense |
| where did common sense go? If I see that you | | | | environmental regulations. If they do, the market |
| need water, I wouldn't send you to a desert to | | | | will give us a diverse supply of energy that is |
| find it. Yet, that's what we do with our oil | | | | reliable - American made - and affordable |
| exploration. Try to find it where we don't know if | | | | It's time to streamline & simplify this |
| it exists. | | | | process, now. |