Economics 101: We Need More Supply

by Contributor | July 20, 2008 8:21 pm

By Congressman John M. McHugh

The headlines flash across our newspapers and TVs every day.  “Oil reaches new record.”  “Home heating costs predicted to rise this winter.”  “Cost of food rising due to delivery costs.”  However, we don’t need the media to tell us that energy prices are rising.  Each and every one of us has seen the effect that rising fuel costs have had on our daily lives.  In an area where it is common for people to drive 30 or more miles each way to work and whether or not to turn on the heat during the long winter months is not an option, energy is simply essential.  While we can take steps to reduce the amount of fuel we consume, ultimately, our nation relies on a steady stream of energy to power our industries, vehicles, and our lives.

Yet, despite this reliance, for too long, our country has failed to take any meaningful steps to add new and improved energy supplies.  Legislative restrictions at both the state and national level have had the result of saying ‘no’ to everything – ‘no’ to building new nuclear plants, ‘no’ to exploring many of our vast oil resources, ‘no’ to directing substantial investments into alternative forms of energy.  Instead, the United States continues to rely on foreign countries and an outdated energy production infrastructure to provide power.  As we have clearly seen in the form of rising gas prices and an electricity supply that can’t always keep up with demand, this formula no longer works.

The solution to fix all this is simple: we need more American energy.  Right now, our economy hinges on traditional energy sources, and we simply need more supply.   We need to explore deep sea resources and domestic locations such as the Arctic National Wildlife Refuge (ANWR).  ANWR alone could produce up to 1 million barrels a day for 30 years – using only 2,000 acres in the process.  There is also an estimated 1.5 trillion barrels of known, commercially-available shale oil reserves.  We are the only country in the world that forbids the use of technology to extract oil and gas in an environmentally responsible way, all while importing 60 percent of our oil supplies from foreign countries.  Since coming to Congress in 1993, I have heard the same argument over and over again – “it will take too long.”  The unfortunate reality is if we had started working toward using our own energy resources 15 years ago, we would now be reaping the benefits of American oil.  Additionally, with electricity demand predicted to rise 25 percent by 2030 in the United States, we need to begin saying ‘yes’ to new nuclear plants, ‘yes’ to new coal plants built with clean coal technology, and ‘yes’ to making significant investments in renewables like wind and solar.

The negative impact of our current energy shortage is widespread and far-reaching.  However, we can take action.  Some in Congress have taken to calling it the “all of the above solution,” – investment in a wide range of diverse energy sources and the removal of the legislative restrictions that prevent us from utilizing our own natural resources.  I strongly support a package of legislation that will open new oil refineries in the United States, invest in diverse sources of energy like nuclear, wind, solar, and clean coal-to-liquid technology, allow the government to procure advanced alternative fuels, and curb the oil speculation market.  Additionally, to provide short term relief to consumers, I have introduced legislation that would provide a tax credit – up to $500 – for those that have high home heating costs.

Unfortunately, as gas prices continue to rise, the current fix in Congress has not been “all of the above,” but rather either “none of the above” or increased taxes.  Both solutions will fail.  Put very simply, we need more American energy and we need to take action now.  We need an “all of the above” solution that acknowledges energy is integral to the fabric of our lives.  We need to begin saying ‘yes,’ or I fear the current crunch is only the beginning.  Without change and the development of new energy sources, our economy will literally run dry.

Congressman John M. McHugh (R-NY) represents the 23rd District of New York.

Source URL: https://oswegocountytoday.com/community/economics-101-we-need-more-supply/

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