[Congressional Record (Bound Edition), Volume 151 (2005), Part 17]
[House]
[Pages 22986-22987]
[From the U.S. Government Publishing Office, www.gpo.gov]




           INCREASING DOMESTIC PRODUCTION AND REFINING OF OIL

  The SPEAKER pro tempore. Pursuant to the order of the House of 
January 4, 2005, the gentleman from Florida (Mr. Stearns) is recognized 
during morning hour debates for 5 minutes.
  Mr. STEARNS. Mr. Speaker, as summer turns towards winter, the 
American people will continue to face high prices of gasoline and soon 
will face even higher costs for natural gas. Short of moving to Florida 
or another warm weather State, the American people are looking to 
Congress to solve this problem. Recent events such as Hurricanes 
Katrina and Rita have highlighted a very serious problem with the 
Nation's crude oil and gasoline supply/demand balance. One way to fix 
this balance is for the United States to increase its refining and 
production capacity. No new refinery has been built in the United 
States in nearly 30 years. Total current capacity at operating 
refineries is 17 million barrels per day while total U.S. demand is 
nearly 21 million barrels per day. Therefore, the only way to bridge 
this gap is to increase the amount of imported refined products from 
foreign sources. Currently the U.S. imports 7.9 percent of its total 
refined petroleum products. By 2005, the U.S. is expected to import 
10.7 percent of its total.
  Mr. Speaker, these staggering numbers further underscore the dire 
need for new and increased refining capacity in the United States. If 
not, we will continue to rely on unstable, anti-American governments to 
meet our growing demand for gasoline. Not only will this situation be a 
blow to economic growth in this country but it will also represent a 
serious national security risk for all of us.
  Even before Hurricanes Katrina and Rita, a number of market factors 
contributed to the record high gas prices: An increased demand at home 
and abroad, political unrest in the Middle East and in Africa and 
product disruptions contributed to the already tightening supply of 
crude oil. Until refining

[[Page 22987]]

capacity and production capacity grow faster than demand, oil markets 
will remain tight and vulnerable to unforeseen and unpreventable events 
such as natural disasters. The high cost of gasoline and other fuels 
has the potential to stifle economic and job growth and is putting a 
strain on the wallets of American families.
  Of course the most efficient way to reduce our dependence on oil and 
gas is to encourage conservation. Making sure your tires are inflated 
properly, carpooling and using public transportation are all fast and 
easy ways to conserve gasoline. In homes, buying energy-efficient 
appliances and making sure doors and windows are properly sealed are 
effective ways to conserve. But, Mr. Speaker, these are short-term 
fixes. Curbing demand is necessary, but in the long term it is not 
merely enough. We need to increase domestic production of oil. 
Currently the U.S. imports about 60 percent of all of its oil. The 
Department of Energy projects this number to increase to 73 percent by 
the year 2025. In order to ensure reliable and secure supplies of oil, 
we have no choice but to increase the domestic supply.
  One way to increase production is to finally open ANWR to oil and gas 
exploration in Alaska. The United States Geological Survey estimates 
that there is between 5.7 and 16 billion barrels of oil that is 
technically recoverable. This estimate does not take into account that 
with new technology, the share could become even higher. A resource of 
this magnitude cannot simply be ignored. ANWR alone would be capable of 
reversing the decline in U.S. petroleum supply within a decade. It is 
not a quick fix. There are no quick fixes. But it is the quickest and 
most reliable option we now have to reverse the decline brought upon us 
by years of neglect of our domestic capacity.
  In addition to gasoline, oil and natural gas play a key role in the 
homes of all of us. Oil and natural gas help generate the electricity 
that powers lights, appliances and entertainment systems. They also 
provide the building block for plastics, resealable food storage 
containers, and durable appliances and electronics, all of which 
contribute to a convenient and safe environment for all of us.
  In closing, Mr. Speaker, even under the best circumstances, storms 
like Hurricanes Katrina and Rita would have had a noticeable impact on 
oil markets. However, at a time of extremely high demand and tight 
supplies, practically shutting down the United States' largest oil and 
refining region caused even greater pressure on our oil markets. In 
order to alleviate this pressure, we must increase our domestic 
refining capacity and production. If not, gasoline and home heating 
prices will continue to climb.

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