Energy in the Afternoon

A few more emails on the subject of energy...

This one comes from the Institute for Energy Research:

Washington, DC – The House of Representatives’ Interior Appropriations Subcommittee plans to debate and vote on an amendment today that would help America’s energy supply problems, provide consumers some much needed relief and send a strong message to energy markets that new supplies are on the way.

Authored by Rep. John Peterson (R-PA), the amendment would finally legalize energy production on America’s Outer Continental Shelf (OCS) beyond 50 miles from the shoreline. The Institute for Energy Research (IER) identified lifting the OCS ban as one of the Top Five Actions the federal government can take to lower energy prices.

“Consumers struggling to keep up with rising energy costs need to follow this legislation very closely,” said Dan Kish, IER’s senior vice president for policy. “Those who want to know who is responsible for America’s energy problems need to look no further than Washington, at the faces of our elected officials in the United States Capitol. To our national and personal detriment, the Congress has made it illegal to produce energy in dozens of areas around the country over the last four decades. Real change that benefits real people should start with this vote today.”

Facts About Outer Continental Shelf (OCS) Energy

· The Congressional moratoria on offshore energy production began in 1982. Congress has voted to continue that ban every year since. The US is the only developed country in the world that restricts access to its offshore resources. Currently, 97% of America’s 2 billion acres of OCS are not being used for their energy potential.

· The U.S. Minerals Management Service (MMS) estimates that the outer continental shelf contains nearly 86 billion barrels of oil and 420 trillion cubic feet of natural gas. (The U.S. consumes roughly 7.5 billion barrels of oil and 23 trillion cubic feet of natural gas annually) The MMS estimates are conservative due to the fact that Congress has made it illegal to conduct energy exploration.

· A National Academies report called “Oil in the Sea III” states that improved production technology and safety training of personnel has dramatically reduced spills related to petroleum extraction to less than 2% of petroleum inputs into North American waters. The greatest share (62%) continues to come from natural seeps.

And this came in from Republican Leader, my Congressman and a Great American -- John Boehner -- 's Freedom Project:

WASHINGTON, DC – House Republican Leader John Boehner (R-OH) today responded to an interview in which Democratic Presidential candidate Barack Obama hinted that there are benefits to a “gradual” increase in gas prices. Boehner released the following statement:

“Why won’t Barack Obama admit that lower gas prices would be a good thing for American families and small businesses? If Obama really thinks consumers ought to shoulder higher energy costs while we make the transition to alternative fuels, he should answer a simple question: how high should gas prices go? $5? $6? $10 a gallon? How much will families pay before Obama will support increasing American energy exploration and production?

“Obama admits that demand for energy ‘is badly outstripping supply’ but he has yet to come out in support of measures to increase American energy production. The House Republican energy reform plan calls for an increase in supply while investing in the development of alternative fuels.

“Our strategy contrasts with Obama’s call for a slew of tax hikes on everyone from middle class families and seniors to small business owners and American energy companies. He and his Democratic allies would needlessly force Americans to suffer under the weight of high gas prices while we make the transition to new fuels. Their path is unnecessary, out of touch, and reminiscent of the failed policies of the past when higher taxes and government mandates drove up prices and increased America’s reliance on foreign dictators.

“One only needs to look at last week’s jobs report to see that high energy costs are having a serious and detrimental impact on our economy. Republicans have laid out a straightforward plan to help lower fuel costs and liberate America from its dependence on foreign oil. There's a groundswell of grassroots support for new American energy production and it's time Obama and Democrats in Congress paid attention.”

NOTE: In an interview with CNBC’s John Harwood, Obama admitted that “our demand is badly outstripping supply with China and India growing as rapidly as they are.” And he said of high gas prices, “I think that I would have preferred a gradual adjustment.” Notably, Obama did not say that he would prefer lower gas prices.