Nick Smith, April 7, 2003

Some have suggested that we’re fighting in Iraq because of our dependence on foreign energy. That isn’t true, but the consequences of our dependence are serious. This first became clear during the Arab oil crisis of the early 1970s when I served on the Presidential Oil Policy Commission. We need this foreign energy because it is a vital component for fostering economic growth. Considering the situation in Iraq and the sluggishness of the economy, the need to reduce our dependence by conserving and developing new sources of energy has never been greater. This is why the energy bill passed out of my Science Committee will be very important for our economy.

Oil and natural gas account for 39 and 23 percent of overall energy usage in our country. In the United States, domestic production of petroleum is nearly 8 million barrels a day, which includes 5.8 million barrels of crude oil and 2.2 million barrels of natural gas liquids. And while 11 countries have more petroleum reserves, we are currently the second largest producer in the world, behind only Saudi Arabia.

Most of the new petroleum exploration taking place in the United States today is being done by smaller companies. Large corporations are increasingly looking overseas to develop new sources for oil and gas. There are several reasons for this. For one, American resources are more fully exploited than in many other countries. Also, where there are opportunities for new production, such as in the Arctic National Wildlife Preserve or the Gulf coast of Florida, environmental groups make it extremely difficult to drill new wells. Finally, extraction and production costs are frequently much higher here than elsewhere. The decreased interest in domestic exploration has been a major factor in production falling from 12 million barrels a day in 1970 to 8 million barrels now.

Historically, conservation has been the primary method of reducing our dependence. It has been successful and we’ve seen American energy efficiency increase dramatically. Since 1970, our GDP has risen 147% while energy consumption is up by only 42%. The energy bill will help us to do even better with a focus on more efficient appliances, electricity generation, and increased automotive efficiency.

Because a growing economy would tend to increase use, the energy bill boosts our efforts to develop alternatives to petroleum. Today, America consumes about 19 million barrels of petroleum a day, about 44 percent of which is motor gasoline. That means a new motor fuel could have a dramatic impact on U.S. usage. The energy bill increases research into ethanol and biofuels made from agricultural crops. Science and research get substantial increases from language I added to the bill, in order to develop and perfect emerging technologies, including fusion energy, neutron source power, hydrogen fuel cells for cars, and improved clean coal technology.

Our dependence built up slowly over decades. Unfortunately, it may also take decades to reduce that dependence even under the best circumstances. Shocks and problems will continue to cause problems for our economy and foreign policy. Still, if we act now, research can secure the energy that the American economy needs to grow and produce. Good-paying jobs for our kids and grandkids are at stake.

Congressman Nick Smith represents the 7th District Congressional of Michigan in the U.S. House of Representatives.