[Congressional Record Volume 146, Number 86 (Friday, June 30, 2000)]
[Senate]
[Pages S6244-S6245]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        A NATIONAL ENERGY POLICY

  Mr. AKAKA. Mr. President, for most of the 1990s, the average gasoline 
prices in Honolulu hovered at roughly 25 cents to 50 cents above the 
national average. In June 1999, only 1 year ago, Hawaii's price of 
$1.51 per gallon ranked above Oregon's at $1.44 and the national 
average of $1.14.
  As late as last month, according to the Automobile Association of 
America, Hawaii topped the Nation with an average per gallon price of 
$1.85, compared to the next highest state, Nevada, at $1.67 and a U.S. 
average of $1.51.
  This month, according to AAA, Hawaii ranked fourth highest with an 
average price for regular unleaded of $1.86 per gallon. That fell below 
Illinois with an average of $1.98, Michigan at $1.96, and Wisconsin at 
$1.91. Still, Hawaii's price was well above the U.S. average of $1.63.
  It is no pleasure to say that Hawaii has lost this dubious 
distinction as the State with the Nation's highest gasoline prices. The 
pocketbooks of Americans are hurting all over the country.
  There has been no shortage of blame--short supplies, pipeline 
problems, cleaner gasoline requirements, too much driving and gas 
guzzlers, oil company manipulations, even an esoteric patent dispute, 
to name a few. So far, the initial examination of the causes of the 
dramatic increase of prices in some areas of the Midwest has provided 
no clear picture. The Clinton administration has asked the Federal 
Trade Commission to investigate if there were any illegal price 
manipulations in the Midwest leading to such dramatic price increases.
  This problem of dependence on imported oil has been in the making for 
many years. Our import dependence has been rising for the past 2 
decades. The combination of lower domestic production and increased 
demand has led to imports making up a larger share of total oil 
consumed in the United States. In 1992, crude oil imports accounted for 
approximately 45 percent of our domestic demand. Last year crude oil 
imports accounted for 58 percent. The Energy Information 
Administration's Short-Term Outlook forecasts that oil imports will 
exceed 60 percent of total demand this year. EIA's long-term forecasts 
have oil imports constituting 66 percent of U.S. supply by 2010, and 
more than 71 percent by 2020.
  Continued reliance on such large quantities of imported oil will 
frustrate our efforts to develop a national energy policy and set the 
stage for energy emergencies in the future.
  For months now, we have watched the price of gasoline and fuel oil 
rise at breakneck speed. All across America, families have suffered 
ever-escalating prices.
  We have not had a coherent and comprehensive energy policy for a long 
time. Additionally, we have not had a commitment to address our 
dependence on foreign sources of oil. Absence of an effective policy 
and a visible commitment to addressing our energy dependence have made 
us hostage to OPEC's production decision. It has also encouraged 
Mexico, our NAFTA partner, to join OPEC in limiting oil supplies.
  We all understand that there is no overnight solution to America's 
energy problems. We can't turn this trend around overnight. Tax repeals 
and other such short-term actions may appear appealing, given the 
political climate, and may even provide limited relief in the short 
run, but they do not provide a solution to our energy problem. They do 
not provide a sound basis for a national energy policy. Their 
unintended consequences may be other problems such as deficits in 
highway and transit funds.
  The only way to reverse our energy problem is to have a multifaceted 
energy strategy and remain committed to that strategy. In my judgment, 
you need both of these in equal portions. This will send a clear 
message to OPEC and their partners about America's resolve.
  The way to improve our energy outlook is to adopt energy 
conservation, encourage energy efficiency, and support renewable energy 
programs. Above all, we must develop energy resources that diversify 
our energy mix and strengthen our energy security. Natural gas appears 
to be the most attractive fuel to form the cornerstone of our energy 
policy. It is the right fuel to bridge the energy and environmental 
issues facing us.
  If we are to have a comprehensive energy policy that strengthens our 
economy and serves the real needs of Americans, then we need to 
dismantle our dependence on foreign oil as soon as possible. And the 
way to do this is to begin using more natural gas--a domestically 
abundant fuel--that is safe and reliable to deliver, more 
environmentally friendly than oil, and over three times as energy-
efficient as electricity from the point of origin to point of use.
  Let me state those facts again: Natural gas is plentiful, efficient, 
environmentally friendly, and it is a domestic fuel source.
  Natural gas offers itself as a good choice for the fuel of the 
future. It offers us many advantages that other fuels do not. About 85 
percent of the natural gas consumed in America each year is produced 
domestically. The balance is imported almost entirely from Canada. We 
have a large domestic natural gas resource base and advances in 
exploration and production technologies are allowing increased 
production. We also have potentially vast resources in the form of 
methane hydrates. This resource base is yet to be explored.

  Natural gas is the cleanest fossil fuel. Wider use of natural gas 
will be more benign to the environment compared to some other fuel 
sources. Natural gas would emit reduced levels of greenhouse gas 
emissions, and would not contribute to acid rain, smog, solid waste, or 
water pollution.
  We must invest in technologies that help facilitate wider application 
of natural gas. New technologies such as micro turbines, fuel cells, 
and other on-site power systems are environmentally attractive. Wider 
use of these technologies in the private and public sectors must be 
facilitated. All Federal research and development programs should be 
reevaluated to provide them with a clear direction. We must boost 
support for those programs that help replace imported oil.
  Transportation demands on imported oil remain as strong as ever. 
Since the oil shock of the 1970s, all major energy consuming sectors of 
our economy with the exception of transportation have significantly 
reduced their dependence on oil. The transportation sector remains 
almost totally dependent on oil-based motor fuels. The fuel efficiency 
of our vehicles needs to be improved. At the same time, we must make a 
concerted effort to encourage development and use of alternative 
vehicle fuels. Natural gas vehicles should be made an integral part of 
our transportation sector.
  If coal was the energy source of the nineteenth century, and oil was 
the energy source of the twentieth century, then I submit natural gas 
can and should be America's source of energy for the twenty-first 
century.
  Americans are demanding an energy system that will guarantee adequate 
energy for future needs, protect the environment, and protect consumers 
from exploitation.
  We are facing numerous problems related to energy such as runaway 
prices, shortages, increases in pollution, self-sufficiency, and the 
effect of energy on our economy. While not a panacea, it is clear to 
this Senator that increased use

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of natural gas must be the center of America's energy strategy.
  The American people deserve better than the status quo. Natural gas 
is America's energy solution.

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