Mr. Speaker, I thank the gentleman for yielding. I come from Pennsylvania where the first oil well was drilled. I live 5 miles from Drake's well. When we discovered oil in Pennsylvania, it changed the world. The whole industrial world as…
Mr. Speaker, I thank the gentleman for yielding.
I come from Pennsylvania where the first oil well was drilled. I live 5 miles from Drake's well. When we discovered oil in Pennsylvania, it changed the world. The whole industrial world as we know it today came about when oil became one of our energy sources. Since then, many energy sources have been added.
What do we need? Do we need ANWR, you bet. Do we need to open a lot of the west and other parts of this country that are locked up to oil and gas drilling, you bet. I am going to try to explain why. When we look at the consumption figures for the world, 39 percent of the energy used in the world is oil. And of our oil, 60 percent of that comes from unstable, unfriendly countries. That is certainly not a good position for a country like the United States to be in.
Mr. Speaker, 23 percent of our energy in the world comes from natural gas, and 23 percent of the energy that fuels the world comes from coal. Now when we add those three items together, that means 85 percent of the energy consumed in the world is fossil fuel. That is an alarming figure when we think about it. Eight percent of the energy consumed in the world is nuclear. Now we are up to 93 percent of our energy. That leaves 7 percent renewables. I support renewables every way we can support them. We need to do more hydro, we need to do more wood and biomass, ethanol, and wind solar. But when we look at the figures a little further, hydro is 3.2 percent so now we are at 96.2 percent of the world's energy. And when we add wood and biomass, we are now at 99.4 percent of the energy in the world.
I have been in so many hearings where people say if we would just stop holding back wind and solar, they would solve our problems. Wind and solar collectively is 6-10ths of 1 percent of the energy of the world. Am I for wind and solar, you bet. A company in my district has just developed some technical engineering that will help wind be far more efficient because it will automatically position the wind turbines so they face the wind properly. As the wind changes, they change. It adds to their efficiency. I am very proud of them for that. But the problem with wind is that it is only really available in a few parts of the world. Often those areas are far from transmission lines, and the wind only blows 38 percent of the time. The rest of the time we have to have a redundant source to take the place of the wind that is not blowing.
The volume of wind turbines needed to supply a State like Pennsylvania would cover half of New England. The other part is that is not where the wind blows. In Pennsylvania they have found two places, up in the north central part of the State in my district and in the south central part of Pennsylvania. There are two areas where the wind is the best, and they have developed a wind farm at one and are talking about a wind farm at the other. Where the wind blows best in the far reaches of Texas where there are no transmission lines to get it out.
With solar, there are only a few places in the country where solar is regular, and there is no solar power at night, and the few parts of the country that have the majority of the solar available are in places where there are no transmission lines. If we double wind and solar in a 5-year period, we would be 1.2 percent of the energy needs of the world.
Mr. Speaker, what we need for the sake of our economy is we need reliable supplies of all energies, and we need to prevent spikes. The spikes from 2 years ago started us back into a recession. The spikes this winter are going to
slow down our economy further. The one energy that is the greatest concern right now is natural gas. Many years ago in the last administration there was a decision made that coal was out and gas was in for electric generation. I personally am not a big fan of gas for electric generation. We used it for peaking power because I believe it has been the main source of home heating, commercial, and the main source for our industry, and it should be the main source for bus fleets and truck fleets in our city areas where we need clean air. The easiest conversion away from petroleum is natural gas for our transportation fleet. In my view, that would be a better use.
But what has happened in this country in just a few years, natural gas, not generally used for power generation for making electricity, now the gas being used in this country, 13 percent of the gas is for power generation; 14 percent of the gas fuels all of commercial in this country. So power generation has caught up with commercial in a 5 or 6- year period, and every day they are hooking up new power generation plants, and the rig counts in this country to produce the gas are not there. It is interesting, and I have a map here. I wish I had a blow-up of it. The dark blue on the map is where the energy is locked up.
Around the Great Lakes, this Congress voted not to allow slant drilling under the Great Lakes, yet we are buying gas and oil from Canada who is drilling under our Great Lakes and selling us the product. It does not make much sense. But if natural gas is the new fuel for electricity and we want to keep it reasonable for home heating and we want to keep it reasonable for commerce and reasonable for our manufacturing and industries, we have got to have a greater supply of it. We cannot import natural gas.
A lot of people think we import natural gas from Mexico. Actually we buy some from them, but we sell more than we buy, so we are actually an exporter to Mexico. We do buy considerable natural gas from Canada, but about 86 percent of our natural gas that we use in this country comes from America, and our source and supply is dwindling because we as a Congress have locked most of those spots up, and some that are not on there, saying we cannot drill there.
Mr. Speaker, in my district there are a number of caverns that are used to store gas for the New England area and the northeast. There are huge salt caverns that we pump the gas into in the summertime. The underground gas reserves in America are the lowest they have ever been historically. The concern is that with the amount of gas that we are using ongoing now to generate electricity, there is not going to be enough to fill them this summer. Last September we had the biggest, the largest amount of gas we ever had in this country. By late November, we had those reserves almost all used because we had an early winter and a cold winter all up and down the East Coast, and so we used more gas than usual.
The problem is right now the average gas price is somewhere between 5 and 5.50 a thousand. We were used to in this country $2 and $3 gas. It was $3 during the peak season in the winter, $2 in the summer when they would fill the reserves. We are now looking at filling reserves at $5 gas if we had it to put there, or $6 gas. When we raise the cost of doing business that much, double energy prices and more than double for large businesses that use a lot of gas, we will put them out of business.
It was at 19 at one point.
No, the reserves I am speaking about are the caverns where we store storage gas. Not reserves. There are a lot of reserves in this country, but a lot of them are under those orange areas where we cannot drill.
That is correct. And if we do not up the drilling in this country, because we are only importing a small part from Canada, and then we import 4 or 5 percent of liquid natural gas, but we only have two places, one in Louisiana and I think one in New Jersey, where ships with liquid natural gas can come here. They liquefy it in other countries, bring it here and then put it back into gas form in the pipelines, and it is used, whether in our homes or commercially or business.
So we do not really have the options of importing gas like we do oil. You have to have a pipeline, and the only place the potential is up through Canada to ANWR. Now, ANWR is a huge gas supply. The ANWR field has tremendous volumes, but it is going to cost a lot of money and it is going to take years to build a pipeline to get that gas down to us.
But the problem we face in this country I do not think a lot of people are looking at. I have been watching it for 3 years as we started hooking up power generation plants. You can talk about an 18, 20, 24 inch high pressure gas line sucking gas out of our system. That heats a lot of homes.
This year we had very high home heating prices. Next winter they are going to be much higher, because there is really no solution to the problem. Everybody all of a sudden is panicking because the gas supply is much lower than they ever anticipated, and since global warming sort of left us out this winter and we have cold weather in April in Washington, we are using gas at an unprecedented rate now, so they are still drawing out of the underground storage, and there is going to be nothing in storage, and if we fill, we are going to be filling at very high prices, which are now $5 to $6 dollars a thousand.
Mr. Speaker, I think it is very vital that we pass an energy bill in this Congress and pass one that is meaningful. We must continue to improve efficiency and conservation of our energy use. I think in electricity we need to veer away from natural gas and go back to clean coal and nuclear for the interim, because if we continue to use natural gas as we are, we are going to threaten home heating. Gas should be saved for affordable home heating, commercial, industrial, and should be used for mass transit in our cities, which would help clean air there.
Oil should be replaced in transportation as quick as we can, whether it is hydrogen fuel cells, the new cars that use multi-fuels or whatever, because we only have 2.5 percent of the world's oil and basically our transportation is funded with oil, and we do not have a long term source of oil.
We need reliable supplies of all energy sources to prevent the price spikes. Why do I say that? Every time we have energy spikes in our country, we have a downturn in our economy and millions of Americans lose their jobs. Seventy percent of our economy is commerce, and when you take money out of home heating budgets, if home heating prices double, when transportation prices for driving our cars spike at the same time, all of that spending comes out of commerce. People do not go and shop, people do not go and spend money, because they have already paid it to their energy sources.
It is vital for the business future of this country, for the home heating efficiency of this country, for an economy that is reliable, we need reliable supplies of all kinds of energy. It will not be easy. We are going to have to do a lot of things differently than we are today. We will have to change a lot of our priorities. It is vital to the future of this country.
If there is one thing in my view that threatens the economic future of America, it is the lack of reliable, affordable energy prices that our businesses and our homes and people can use to fuel their homes and our businesses. Without that, our economy will be very difficult.