ENERGY,
ECONOMIC SECURITY, AND IRAQ
By U.S. Congressman John Peterson
August
16, 2002
From heating our homes
and cooking our food to generating electricity, energy plays a vital role
in our everyday lives. Energy fuels our transportation system, runs our
businesses, and constantly improves our way of life. An affordable, reliable
energy supply is as vital to the survival of our nation as blood is to
our body, and it is critical that we have a national energy plan that
will make America energy independent, provide economic security, and preserve
our environment.
The war on terrorism
and the ongoing conflict with Iraq have made it clear that America must
become energy independent. At the height of the 1970’s Arab oil
embargo, the United States was 32% dependent on foreign oil. Today we
are nearly 60% dependent, making us vulnerable to nations like Iraq which
control the world's oil supply. Iraq is the fastest growing source of
U.S. oil imports, and Saddam Hussein was recently quoted bragging that
“oil is a weapon.” Oil profits enable Saddam’s regime
to develop weapons of mass destruction, finance Palestinian suicide bombers,
and engage in other terrorist activities. Now more than ever, it is time
for America to gain energy independence from Iraq and other foreign, politically
unstable nations.
In addition to protecting
our homeland, an affordable and reliable energy supply is critical for
creating jobs, growing businesses and strengthening our economy. Larry
Kudlow, chief economist at CNBC, recently observed that "each of
the past three bear market recessions have been associated with sharp
oil price increases -- 1973-75, 1979-82 and 1989-90." These price
spikes, all of which can be linked to military or political upheaval in
the Middle East, caused economic slowdowns and tremendous job losses for
Americans. When Iraq and other oil producing countries slowed production
in late 1999, the price of oil in the U.S. shot up from $10 a barrel to
more than $30. Businesses must be able to count on reliable energy prices,
and our economy depends on a stable energy market.
The previous Administration
for 8 years failed to produce an energy policy, and actively opposed responsible
oil and gas exploration, supported tearing down valuable hydroelectric
dams, and increased taxes on gasoline, diesel, kerosene, and aviation
fuel. Since 1992, U.S. oil production has decreased by 17% while consumption
has increased by 14%. In 1974, America had 258 refineries -- today there
are only 152 left, and no new refineries having been built since 1976.
From day
one of his new Administration, President Bush has been actively working
to pass a comprehensive, balanced energy plan that will help solve America’s
energy crisis. The House of Representatives passed an energy bill last
year that focuses on developing alternative sources of energy, increasing
investment in conventional energy that can be produced cleanly and efficiently,
and encouraging conservation. The Senate recently approved a much weaker
version which fails to properly invest in domestic production which is
critical to making America energy independent and creating jobs. When
Congress reconvenes in September, a conference committee will be responsible
for working out the differences between the two bills.
While conservation
and alternative sources of energy are important, they must go hand in
hand with safe, responsible domestic production. The balanced approach
passed by the House is in danger of falling victim to an extremist environmental
agenda which opposes domestic energy production. If this critical part
of the equation is eliminated, America's energy infrastructure will topple
like a 3-legged stool when one leg is cut off.
Like it or not, oil
is still the lifeblood of our economy. While modern technology will undoubtably
lead to the gradual replacement of oil in favor of natural gas, clean
coal and other energy sources, we can not continue importing vast amounts
of oil from Iraq and other unstable nations when we have undeveloped resources
right here in America. The amount of oil contained on a small sliver of
land on Alaska's northern arctic plain has the potential to replace 30
years of Saudi Arabian oil and more than 50 years of Iraqi imports. This
region known as ANWR, in which only a tiny portion of tundra is being
considered for production, can be explored responsibly and has the overwhelming
support of the local community.
As we look to develop
more permanent energy sources for the future, we need to focus on developing
America’s vast coal reserves which have the potential to supply
energy to the United States for nearly 300 years. America is the “Saudi
Arabia of coal,” and the development of coal contained in Pennsylvania
alone would create thousands of new jobs and help diversify our energy
supply. Thanks to new technologies and applications being developed at
research institutions like our own Penn State University, coal can already
be produced cleanly and is being developed for uses ranging from specialty
graphite to thermally-stable jet fuels.
As Congress works
to produce a national energy plan, Republican leaders will be encouraging
responsible exploration for American oil, new advances in clean coal technologies,
conservation and increased development of alternative energy such as hydro-power,
biomass, wind and solar that can supplement traditional energy sources.
Other priorities include the development of alternative fuel cell vehicles,
safe operation of nuclear facilities, pipeline safety improvements, and
emergency energy assistance for low-income families. The Republican plan
is supported by the Teamsters, the AFL-CIO and other labor unions, as
well as the U.S. Chamber of Commerce and countless business and community
organizations.
A comprehensive,
balanced energy plan is critical to America’s future. With today’s
scientific advances, there is no reason why affordable, reliable energy
should not go hand in hand with a clean environment. In these times of
political uncertainly in the Middle East, it is especially critical for
Americans to work together to make America energy independent.
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