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“INCREASING DOMESTIC PRODUCTION AND REFINING OF OIL” mentioning the U.S. Dept. of Energy was published in the House of Representatives section on pages H8849-H8850 on Oct. 18, 2005.
The publication is reproduced in full below:
INCREASING DOMESTIC PRODUCTION AND REFINING OF OIL
The SPEAKER pro tempore. Pursuant to the order of the House of January 4, 2005, the gentleman from Florida (Mr. Stearns) is recognized during morning hour debates for 5 minutes.
Mr. STEARNS. Mr. Speaker, as summer turns towards winter, the American people will continue to face high prices of gasoline and soon will face even higher costs for natural gas. Short of moving to Florida or another warm weather State, the American people are looking to Congress to solve this problem. Recent events such as Hurricanes Katrina and Rita have highlighted a very serious problem with the Nation's crude oil and gasoline supply/demand balance. One way to fix this balance is for the United States to increase its refining and production capacity. No new refinery has been built in the United States in nearly 30 years. Total current capacity at operating refineries is 17 million barrels per day while total U.S. demand is nearly 21 million barrels per day. Therefore, the only way to bridge this gap is to increase the amount of imported refined products from foreign sources. Currently the U.S. imports 7.9 percent of its total refined petroleum products. By 2005, the U.S. is expected to import 10.7 percent of its total.
Mr. Speaker, these staggering numbers further underscore the dire need for new and increased refining capacity in the United States. If not, we will continue to rely on unstable, anti-American governments to meet our growing demand for gasoline. Not only will this situation be a blow to economic growth in this country but it will also represent a serious national security risk for all of us.
Even before Hurricanes Katrina and Rita, a number of market factors contributed to the record high gas prices: An increased demand at home and abroad, political unrest in the Middle East and in Africa and product disruptions contributed to the already tightening supply of crude oil. Until refining capacity and production capacity grow faster than demand, oil markets will remain tight and vulnerable to unforeseen and unpreventable events such as natural disasters. The high cost of gasoline and other fuels has the potential to stifle economic and job growth and is putting a strain on the wallets of American families.
Of course the most efficient way to reduce our dependence on oil and gas is to encourage conservation. Making sure your tires are inflated properly, carpooling and using public transportation are all fast and easy ways to conserve gasoline. In homes, buying energy-efficient appliances and making sure doors and windows are properly sealed are effective ways to conserve. But, Mr. Speaker, these are short-term fixes. Curbing demand is necessary, but in the long term it is not merely enough. We need to increase domestic production of oil. Currently the U.S. imports about 60 percent of all of its oil. The Department of Energy projects this number to increase to 73 percent by the year 2025. In order to ensure reliable and secure supplies of oil, we have no choice but to increase the domestic supply.
One way to increase production is to finally open ANWR to oil and gas exploration in Alaska. The United States Geological Survey estimates that there is between 5.7 and 16 billion barrels of oil that is technically recoverable. This estimate does not take into account that with new technology, the share could become even higher. A resource of this magnitude cannot simply be ignored. ANWR alone would be capable of reversing the decline in U.S. petroleum supply within a decade. It is not a quick fix. There are no quick fixes. But it is the quickest and most reliable option we now have to reverse the decline brought upon us by years of neglect of our domestic capacity.
In addition to gasoline, oil and natural gas play a key role in the homes of all of us. Oil and natural gas help generate the electricity that powers lights, appliances and entertainment systems. They also provide the building block for plastics, resealable food storage containers, and durable appliances and electronics, all of which contribute to a convenient and safe environment for all of us.
In closing, Mr. Speaker, even under the best circumstances, storms like Hurricanes Katrina and Rita would have had a noticeable impact on oil markets. However, at a time of extremely high demand and tight supplies, practically shutting down the United States' largest oil and refining region caused even greater pressure on our oil markets. In order to alleviate this pressure, we must increase our domestic refining capacity and production. If not, gasoline and home heating prices will continue to climb.
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