[Congressional Record (Bound Edition), Volume 146 (2000), Part 18]
[Extensions of Remarks]
[Pages 26560-26561]
[From the U.S. Government Publishing Office, www.gpo.gov]



          THE DEPARTMENT OF ENERGY'S CHILLING WINTER FORECAST

                                 ______
                                 

                        HON. BENJAMIN A. GILMAN

                              of new york

                    in the house of representatives

                        Friday, December 8, 2000

  Mr. GILMAN. Mr. Speaker, as we enter the winter months, the Energy 
Information Agency of the U.S. Department of Energy (EIA) delivered the 
cold facts on December 6th in its ``Short-Term Energy Outlook for 
December 2000.'' The bottom line is that prices for home heating oil 
and natural gas will rise this winter--considerably.
  While the EIA's report is written in approximations, averages, and 
technical language, its message resonates loud and clear with our 
constituents and those residing in the Northeast--that their heating 
oil bills may increase by more than 33 percent from last winter. 
Furthermore, it is predicted that those whose homes and businesses are 
heated by natural gas are likely to see an increase of 50 percent in 
their utility bills this winter over last winter's.
  The reasons EIA give for the projected increases are: lower than 
average heating oil and natural gas reserves, an increase in demand 
versus available supply, and the onset of colder weather, earlier in 
the season. The American Gas Association reports that while exploratory 
drilling for natural gas has tripled over the past year, it will take 
another year or more before that gas will make its way into the 
marketplace. Another factor effecting home heating oil prices, a 
distillate of crude oil, is the relatively high price per barrel of 
crude. In this regard, our dependency on foreign oil, specifically from 
the OPEC nations, hurts us.
  Mr. Speaker, the situation with OPEC is not any new issue. Our House 
International Relations Committee as well as the Government Reform 
Committee have held hearings on OPEC and their affecting the exorbitant 
costs of energy. I have called upon President Clinton, Secretaries 
Albright and Richardson, and to OPEC Ministers before their meeting 
last September urging their assistance. The theme was the same, the 
price of energy is too high and is hurting our nation and others, and 
it must come down.
  While OPEC has agreed to increase production, it is difficult to 
ascertain by how much and what effect that increase will make on the 
price of oil. Thus far, the price of imported crude oil remains over 
$30 per barrel, and OPEC's increase in production has done little or 
nothing to stabilize the prices for heating oil, or significantly 
reduce the price per barrel of imported crude oil to an acceptable 
level for both consumers and producers. The oil market remains volatile 
and prolonged cold weather could easily result in prices soaring to the 
$40 per barrel, ten-year highs of a few months ago. This is 
substantiated by EIA's following statement.
  The EIA states: ``unless the winter in the Northeast is unusually 
mild or world crude oil prices drop significantly, the projected high 
prices for heating oil will continue until next spring.'' The EIA 
further reports that, ``a risk exists this winter for distillate fuel 
(home heating oil and diesel fuel) price spikes similar to what 
happened last February, especially if the weather stays unusually cold 
in the Northeast for more than a few days.'' The EIA once again 
underscores that mother nature plays a significant role in determining 
the price of energy.
  Mr. Speaker, the next Administration must create and implement a 
strategic, coherent, forward looking short and long-term energy policy 
that takes winter weather into consideration when formulating a 
national policy. Notwithstanding the current Administration's failure 
to enact an energy policy that makes sense for the American people, 
there are short-term measures that we can take to make our homes more 
energy efficient this winter.
  Regardless of how our houses are heated, there are certain steps that 
can lower the cost of our heating bills: checking doors and windows for 
leaks and drafts; wrapping the hot water boiler with insulated 
material; clean filters on forced air furnaces; making sure that 
fireplaces are clean and working efficiently, and if they are not being 
used, making sure that the flues are sealed; installing a programmable 
thermostat, and caulking and adding weather stripping where needed.
  Mr. Speaker, as the price of energy continues to rise, no one should 
have to decide whether to feed their family or to heat their home. 
There are programs such as the Low Income Home Energy Assistance 
Program

[[Page 26561]]

(LIHEAP), for which I have been a strong advocate. LIHEAP is designed 
to assist our low income families with the costs of energy. As the 
Department of Health and Human Services states, depending on the LIHEAP 
grantee, LIHEAP can be used for: heating assistance, cooling 
assistance, energy crisis intervention, and weatherization and other 
energy-related home repairs. If constituents are having trouble paying 
for the high costs of energy, they should not hesitate to contact their 
Member of Congress to find out if they qualify for LIHEAP assistance.
  While the EIA projects that the price of energy this winter may rise 
by as much as 50 percent, it is important for our constituents to know 
that no one should have to choose between eating or heating.

                          ____________________