The nation’s current energy crisis, which has led to skyrocketing gas prices, places a serious burden on American small businesses, their employees and their families. Today, unleaded gasoline averages more than $4 a gallon across the country. In just over two years, the cost of a gallon of gas has increased by more than $1.60 a gallon. For example, filling up a light-duty truck in 2006 cost approximately $95. It now costs about $155, an increase of more than 50 percent.
According to the Energy Information Administration (EIA), current worldwide consumption of crude oil is estimated at 86.4 million barrels per day. By 2030, this number is expected to increase to 118 million barrels per day. On the other hand, domestic production has remained stagnant for more than two years.
To further complicate the matter, the last refinery built in the United States was completed in 1976. With the rapid industrialization of countries such as China and India, the United States will be forced to compete for energy from a smaller foreign supply while costs rise from demand.
To remain competitive, the United States must find a way to build and open new refineries, invest in alternative energy sources and responsibly explore new production options. In order to achieve an energy policy that accomplishes this, congressional leaders must work across the aisle and consider all legislation that could alleviate the strain of higher prices at the pump.
Since the start of the 110th Congress, a responsible energy policy has yet to be developed. In an effort to find a solution, Associated Builders and Contractors (ABC) joined with other business groups to form the Fuel Prices Coalition to urge members of Congress to pass legislation that would increase domestic energy production and reduce America’s dependency on foreign oil. Already, the coalition has put pressure on Congress to force a debate on legislation that has largely been ignored.
Focusing on seven separate bills in June and July, the coalition called attention to legislative options that offer real, common-sense solutions to lower gas prices. Republican members of the House of Representatives filed discharge petitions that, if the required 218 members of Congress sign, would allow any of the following seven pieces of legislation to go directly to the House floor for debate and a final vote.
• H.R. 3089, No More Excuses Energy Act of 2007;
• H.R. 2279, Expedite American Refining Capacity on Closed Military Installations;
• H.R. 5656, To Repeal the Ban on Acquiring Alternative Fuels;
• H.R. 2208, Coal-to-Liquid Act;
• H.R. 2493, Fuel Mandate Reduction Act of 2007;
• H.R. 6107, American Energy Independence and Price Reduction Act; and
• H.R. 6108, Deep Ocean Energy Resources Act of 2008.
The passage of these bills would result in lower fuel costs and the creation of thousands of American jobs. More importantly, with the creation of new energy infrastructure projects, the construction industry would likely see a dramatic increase in industrial project opportunities.
At press time, Republican efforts have yet to yield the required 218 signatures to move these bills to the floor. Some members of Congress are blocking the legislation from being debated, opting instead to focus on limited policies that simply are not enough to make America energy-independent. The solution to the nation’s energy crisis does not lie in frivolous litigation, higher taxes, additional regulations or in the prevention of new technologies.
Lawmakers must be urged to establish a comprehensive energy policy that expands domestic refining capacities, invests in alternative fuel sources and allows for the exploration of U.S. natural resources.
The time for action and good policy to ensure America’s future is now.
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Friday, September 3, 2010