[Congressional Record (Bound Edition), Volume 150 (2004), Part 9]
[House]
[Page 11321]
[From the U.S. Government Publishing Office, www.gpo.gov]




                     AMERICA NEEDS AN ENERGY POLICY

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Pennsylvania (Mr. Peterson) is recognized for 5 minutes.
  Mr. PETERSON of Pennsylvania. Mr. Speaker, I rise tonight to ask the 
question, How long can America afford to not have an energy policy in 
place?
  For many years we had cheap energy in this country. We had oil for 
over a decade at about $10 a barrel and natural gas around $2 a 
thousand, but that has all changed.
  Today we have oil constantly popping past the $40-per-barrel mark. 
The natural gas that we were putting in the ground today for next 
winter's heating $6.47 a thousand. Last year the world was shocked when 
we put it in the ground at $4.60 a thousand for the next heating season 
during the winter.
  The question I ask again and again is when will we put an energy 
policy on the President's desk so he can sign it? He is the first 
President to continually ask Congress for an energy policy, an energy 
plan. Other Presidents ignored it. We have an education policy, but no 
energy policy. We have a defense policy, but no energy policy. We have 
an ag policy, but no energy policy. A transportation policy, an 
environmental policy, trade policies, but no energy policy.
  I live within 5 miles in Pennsylvania of Drake's Well, the first oil 
well which was drilled in 1859; and when oil was discovered, it changed 
the world. It brought about the industrial revolution and the 
modernization of our society, and today the world consumes 80 million 
barrels daily. We use about one fourth, 20 million barrels; and our use 
continues to rise.
  The alarming fact is that China and India are now growing faster in 
energy use than us and competing with us for foreign oil. And as the 
world economy begins to really grow, and it is, the demand continues to 
rise. Our problem is 50 percent of our oil comes from unstable parts of 
the world. We have no control over oil prices. We have no control over 
energy costs. And coupling that problem with the natural gas issue, 
which is new, just a few years ago it was $2 a thousand. Today, they 
continue to sky rocket. Four years ago, it was less than 3, usually 2-
something. Last year, we were putting in the ground at $4.70 at this 
time of the year. On the average of almost $6 over the year. Today we 
are putting it in the ground for next year at $6.47, and some think gas 
will be 7 to $8 a thousand this winter.
  The problem that raises is that we are not competitive. Europe pays 
$3.70 a thousand. North Africa $1.20; all the others are under that. So 
the rest of the world has natural gas much cheaper than us.
  Now, what is that doing to business in this country? It is 
eliminating the fertilizer business in this country as we speak. You 
cannot afford to make fertilizer in America because they use it as an 
ingredient and as a fuel. It is harming the petrochemical industry, 
which is quickly moving to Europe. Polymers and plastics and anybody 
that heats, bakes, cooks, melts or dries products with natural gas has 
a problem. We produce 85 percent of our natural gas in this country. We 
import 14.5 percent from Canada; a percent and a half of liquefied 
natural gas from numerous parts around the world; and we export about 1 
percent of our gas to Mexico.
  A decade ago, a moratorium was removed on the generation of 
electricity with natural gas. I think it is an issue that really needs 
to be debated again today. At that time, 8 percent of our natural gas 
was only allowed to be used for peak power, in the morning and evening 
time when we need that extra surge. But when they removed that 
moratorium, in a few short years 25 percent of the natural gas in this 
country is now used to generate electricity.
  We have 1,000 rigs drilling, a number higher than most, than 
normally, but the shortage remains. All of the gas-rich areas in 
America are off limits to drilling, many legislatively. It has been 
prohibited to drill the east and west coast offshore. Around the 
Florida coastline where there is lots of gas, it is off limits. Forty 
percent of the gulf, and we know the rest of the gulf is rich with gas 
because we get a lot of it there, is off limits to drilling. Sixty 
percent of the Midwest, which is owned by the Federal Government, much 
of it is off limits to drilling or it takes years to get a permit.
  We must somehow figure out if we are going to use natural gas to 
generate electricity, how we replace that supply because we are 
threatening homeownership, we are draining commerce, and we are 
threatening industries in this country that particularly use a lot of 
natural gas.
  The question I ask again, Can we afford to float down the river 
aimlessly with no plan of action, no energy policy on the President's 
desk?
  Yes, we must conserve and we must use energy more wisely and we must 
promote renewables, but the growth has not been there. Wind and solar 
are only used part of the time so you have to have an abundant source. 
America needs an energy plan. It needs to be on the President's desk 
tomorrow.

                          ____________________