Washington Addresses Katrina’s Impact on Gas Prices
Terry Everett, September 12, 2005
While the devastation of Hurricane Katrina is limited to Louisiana, Mississippi and southwest Alabama, the impact of the disruption to oil and gas production is nationwide. Pump prices have broken $3 a gallon for regular unleaded and long lines at stations and limited gas supplies conjure up images of the oil crunch of the early 1970's. Last week, the U.S. House passed $52 billion in emergency funding to help Katrina victims and the Federal government is working to ensure that our energy infrastructure is rebuilt as quickly as possible.
In addition to the unimaginable human toll, Katrina has wrought havoc on our nation's Gulf Coast energy infrastructure. Forty percent of our nation's oil refining capacity is located in the area affected by Katrina, and many of these facilities were forced to shut down due to the storm. In addition, a large number of off-shore oil rigs that produced hundreds of thousands of barrels a day before Katrina are damaged and remain idle. The pipelines that carry fuel to other parts of the nation from the Gulf Coast are running at 50 percent of their capacity.
To ramp up oil and gas production, President Bush has instructed the Environmental Protection Agency to loosen restrictions on fuel blends so that more gas can be produced. He has also tapped the nation's Strategic Petroleum Reserve. Some 30 million barrels of oil are authorized for release from the reserve. The President has also allowed foreign nations to transport 30 million barrels of oil and gas to the United States. These measures will help to increase supply and lower prices.
President Bush has also announced a zero-tolerance policy for price gouging at the pump. Gas stations cannot, and will not be allowed to take advantage of Hurricane Katrina's devastation at your expense. Our economy functions because customers have faith that the prices they pay for goods and services are fair market values-and the price of gas should be no exception. While many gas price increases are tied to Katrina-related supply disruption and are not illegal, incidents of gouging will not be tolerated.
The U.S. Department of Energy has established a web link to report gas price gouging. The link is http://gaswatch.energy.gov/. Also, complaints can be relayed to the Alabama Attorney General's office of Consumer Affairs, 1-800-392-5658 (www.ago.alabama.gov).
The energy issues brought to light by Katrina were also addressed in the Energy Policy Act of 2005 passed earlier this year by Congress and signed into law by the President. This legislation will help this nation meet our energy needs in the century ahead. By encouraging increased production, exploration, and conservation, this balanced and comprehensive approach is aimed not just at ensuring a more affordable and stable energy supply, but also at promoting the use of alternative, permanent sources of energy that will help reduce our dependence on the production of foreign nations.
But until these policies begin to take full effect, there are things we all can do as individual citizens to help lower costs. Common sense solutions to lowering your gasoline bills can go far. Carpooling, taking fewer or shorter road trips, and ensuring that your tires are fully inflated can all help stop the pinch at the pump.
Congressman Terry Everett, a Republican, represents Alabama's Second Congressional District, which includes the state capitol, Montgomery.
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