A significant problem we are facing this year is that our nation’s ability to refine oil into gasoline has been hurt by a number of outages.  Some estimates indicate that our refining capacity is eight times worse than last year.  The fact is, we haven’t built a new refinery in this country since the 1970s; however, we have lost several during that time.  I have supported legislation that would expand the number of domestic refineries and actually construct a refinery for specifically for our military, HR 3893.

Acute problems with our refining ability combined with a rapidly growing global demand for oil is only going to continue (not to mention the fact that 60% of the oil we consume comes from foreign sources).

To properly address this problem, we need to take action on three fronts:  more conservation and efficiency – more domestic exploration and production of oil and natural gas – and the development of more alternative fuels like ethanol and bio-diesel.    As a member of the House Agriculture Committee, I am excited to say that we are going to include a significant energy component in the Farm Bill to help us develop these new alternative fuels, fuels can be grown right here at home – lessening our dependence on the Middle East and creating a new market for our farmers.

We need to take action on the Farm Bill because the reality is that we don’t have the ability to grow enough corn to keep up with the growing demand.  According to the Renewable Fuels Association, production of ethanol averaged 375,000 barrels per day while demand averaged 414,000 barrels per day in our country.  Given that corn in also used in everything from animal feed to the high fructose syrup in soft drinks, we can see that relying on corn alone will virtually be impossible. 

Ethanol can be produced from other sources like trees and switch grass, however they require different production facilities and farmers have been slow to jump into this emerging market without more stability. 

While we have more ethanol being produced, we don’t have the infrastructure to distribute the E85 product to automobiles.  Think about it, you see gas stations all over but you have to search pretty hard to find an ethanol pump.  That’s why I have reintroduced legislation, HR 604,that provides a tax incentive to help correct this problem.  The “E85 Investment Act” would provide a tax credit to local filling stations to install these alternative fuel pumps. 

While supply and demand pressures are fundamentally responsible for high energy prices, I also want to make sure that consumers aren’t getting gouged somewhere along the way.  I have supported legislation, HR 1252,  which imposes stiff penalties on those who are found guilty of taking advantage of our consumers.

Bringing new solutions to our energy problem is important to our economy and our national security.  However, it’s going to going to require a national effort to make this happen.