[Congressional Record Volume 160, Number 142 (Wednesday, November 19, 2014)]
[House]
[Pages H8073-H8074]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
GAS PRICES AND ENERGY PRODUCTION
The SPEAKER pro tempore. The Chair recognizes the gentleman from
Pennsylvania (Mr. Thompson) for 5 minutes.
Mr. THOMPSON of Pennsylvania. Madam Speaker, according to the Energy
Information Administration, today's national average price for retail
gasoline is $2.97. This is the lowest price in over a 4-year period
beginning in October of 2010.
Gasoline prices have decreased by roughly 21 percent in the last 6
months alone. One of the most prevalent factors determining the price
of gasoline at the pump is the international average of the cost of a
barrel of crude oil.
[[Page H8074]]
Now, over the past week, the price of crude oil per barrel has
hovered between $77.15 and $77.85. These are the lowest per-barrel
prices since June of 2012, just over 2 years, a stark contrast to $145
per barrel in May of 2008.
The Energy Information Administration has projected that gasoline
prices at the pump will continue to decline in December to somewhere
around $2.80 a gallon and possibly even lower in 2015.
Additionally, U.S. natural gas prices are roughly $4.24, as
production continues to flourish. This is all welcome news for
consumers, businesses, and the economy, from more affordable
transportation to heating our homes, from the food we consume to
American manufacturing having lower costs, therefore being more
competitive globally. Lower energy costs are good for our economy
overall.
Now, there are many factors as to why gasoline prices fluctuate. They
include international market trends and geopolitical events, as well as
weather and impacts upon refining capacity due to natural disasters.
While a downed economy has decreased annual demand for gasoline as
the summer travel season comes to an end, the price decreases for
gasoline can largely be attributed to an increase in domestic supply.
At any other time in our history, given today's world events, our gas
prices would be pushing $4 a gallon. Especially with the ongoing
recession, American energy production has thankfully increased in
recent years, and gas prices have decreased.
While some in Washington would like to credit the Federal Government
with the increased supply, the truth is that the vast majority of this
domestic production has occurred in spite of Federal actions, not
because of them.
The great majority of the production has occurred on private and
State-owned lands and has been the result of technological enhancements
that have made shale gas and oil reserves more attainable.
Specifically, this increase in production stems from the combination
of horizontal drilling and hydraulic fracturing. Pennsylvania, for
example, is currently third in State production of natural gas. The
Commonwealth has produced 3.2 trillion cubic feet in 2013 alone.
Increased production has bolstered domestic energy supplies and
directly led to historically low natural gas prices across the U.S.
This comes on the heels of alltime high prices in 2008 of about $12.
Production in Pennsylvania has provided royalty payments to landowners,
while contributing significant funds to counties.
Madam Speaker, private and State-owned lands have changed the face of
energy production and affordability in our country. The Federal
Government would stand to gain by following suit. This starts with
opening up new areas of Federal lands, both onshore and offshore, for
the production of our natural resources.
These resources belong to the people. There is no reason the
administration should continue to play games with energy security. Over
the last 4 years, the House has made a priority of moving legislation
that would increase our domestic energy production supply.
Just this past September, the House passed H.R. 2, which was a
combination of 13 energy-related bills, among them is the Keystone XL
pipeline, increasing the amount of permitted onshore and offshore lands
for development, along with streamlining cumbersome energy permitting
regulations. The bill sets timelines for agencies' permitting decisions
and would provide for more pipelines and liquefied natural gas exports.
Many of these actions can be taken by the executive branch, but the
administration has not acted. As we have witnessed in recent years,
through the development of private lands, increasing our domestic
energy supplies and encouraging American production will have a
positive impact on energy prices here at home.
Increased domestic energy production of oil and natural gas has eased
the financial pain at the pump. This is also welcome as temperatures
drop and the home heating season has begun.
The bottom line is the government can do much more to influence
energy prices for American consumers. The time for the administration
to act is long overdue.
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