WASHINGTON – This afternoon, top government officials testified at a congressional hearing before the House Committee on Government Reform regarding soaring fuel prices. (Yesterday, the same committee heard testimony from representatives of oil companies and other affected businesses.) First District Congressman Paul Ryan, a member of the Government Reform Committee, today expressed concern that the Administration has not implemented an effective energy policy.

"Wisconsin consumers are going into this winter likely looking at higher home heating oil prices than we've seen in a decade," said Ryan. "Like the gasoline price spike that hit our area in late spring, this is a symptom of a larger problem: the Administration lacks an effective energy policy."

According to the House Committee on Government Reform, home heating oil prices are at a ten-year high, up more than 50 percent in the past year alone, and could jump 40 percent higher than last winter due to historically low inventories. Natural gas prices are at an all-time high and have more than doubled since last year. This winter natural gas prices could be 55 percent higher than last winter because of low inventories.

In a hearing statement today, Ryan observed: "…I do not think that the Administration is doing enough to increase the international supply of crude oil….Because it is not economically feasible to meet all of our energy needs domestically, it is vital that we not only 'jawbone' OPEC into supplying more oil, but that the U.S. actively work to overcome obstacles to increasing production in non-OPEC countries."

Ryan also focused on the impact that regulation has on domestic refineries in his statement, noting: "Aside from OPEC production, the risk of a disruption in domestic supply is the second biggest threat I see to stable oil prices. Not a single new oil refinery has been built in the United States since 1982. Furthermore, 36 refineries have shut down since 1992. The remaining refineries are currently running at 95 percent capacity. The smallest problem at any of these facilities would affect the price of gasoline or heating oil. Most of the new money coming into the refining industry goes for keeping up with new environmental rules and regulations,…I think Congress and the Administration can make the regulatory process easier without lowering environmental standards."

Ryan added: "…Another issue I think needs to be discussed is EPA's aggressive enforcement of its New Source Review program that has made it extremely difficult to build new refineries, or even upgrade existing ones. The regulations create shortages by placing mandates on the refineries without giving the refineries a means of increasing production."