Mr. President, I rise to speak today on the topic of energy, a topic that is obviously consuming Members of both Chambers of Congress. It is something everyone in the country is focused on, and for good reason--gasoline at $4 a gallon and…
Mr. President, I rise to speak today on the topic of energy, a topic that is obviously consuming Members of both Chambers of Congress. It is something everyone in the country is focused on, and for good reason--gasoline at $4 a gallon and oil reaching $140 a barrel. Even in the heat of summer, people are concerned with how they are going to pay to heat their homes this winter.
We need a sound, balanced approach to energy. This approach certainly has not been any part of the debate we have had in Congress in recent months because all the discussion seems to center around the idea of speculation, which is something we need to address and should be concerned about, but rest assured, it is not the lion's share of the problem. We need to do more than just look at ways to appropriately regulate our financial markets.
If we look at the bill on the floor, it has fallen into that same trap. This is a bill which does not deal with conservation, it does not deal with alternative and renewable energy, it does not deal with energy research, it does not deal with electricity production, and it does not deal with new production of oil or natural gas or any other kind of energy.
I think people across the country look at a debate such as this and they scratch their heads: How can people seriously think they are going to have a positive impact on energy prices in the medium term or the long term if they are not really doing anything about either supply or demand? There is no question, we do need to continue to work to use less energy, save energy, and conserve energy. However, we also need to work to find more energy, develop new alternatives for energy production, and develop new reserves of energy at home. Those are the kinds of changes that will make a real difference in the long term, but they will also make a real difference in prices today because the energy futures market is just that--a prediction of what the price of energy will be in the future. If the markets, businesses, industry, and investors are convinced that there will be a concerted effort to do a better job saving energy--using less--and do a better job of producing energy--finding more--then those prices will, without question, come down. We need legislation that makes aggressive steps in all of these areas, and to think that we could just deal with one area one time with a very modest approach and have an impact is simply mistaken.
Regulation is important. Regulation is important because it ensures that the markets have integrity. Regulation ensures that investors, whether it is a pension fund or a mutual fund, or a farmer who is hedging prices for the potential of an increase in energy prices in the future, have confidence in the marketplace.
Any time we have a financial market, we want to make sure disclosure is appropriate. In the case of energy futures, we want to make sure we have appropriate position limits and information that is being shared across different platforms so that we understand what those positions are, what their volumes are, and what might be influencing pricing. We also want to make sure that we have information that might be important to bring to bear if there is a case of price manipulation, which is against the law and should be prosecuted to the fullest extent of the law.
The question is really whether what this bill addresses and only addresses--the idea of regulation in the markets--whether this bill as written would significantly affect price. I don't think it would have a significant impact, but I suggest you don't take my word for it. Let's look at what investors and financial experts and regulatory agencies have to say about the current problem.
Just in this past month, Warren Buffett, an intelligent investor, well known, candid, honest, certainly not a Republican, had this say:
It's not speculation, it's supply and demand. We don't have
excess capacity in the world anymore and that's why you are
seeing oil prices increase.
The Chairman of the Commodity Futures Trading Commission says:
We haven't found evidence that speculators are broadly
driving these prices.
The International Energy Agency--not beholden in any way to American politicians or American investors on Wall Street or Main Street--says:
There is little evidence that large investment flows into
the futures market are causing an imbalance between supply
and demand and therefore contributing to high oil prices.
Chairman Ben Bernanke, testifying before Congress, said:
If financial speculation were pushing oil prices above the
level consistent with the fundamentals of supply and demand,
we would expect inventories of crude oil to increase. But, in
fact, available data on oil inventories show notable declines
over the past year.
These individuals and organizations are not political in nature. They share the same goal a good legislator would have, or anyone in America, to try to bring down prices. They recognize that simply adding new regulations to the futures market is not going to have a significant effect on the fundamental problem of supply and demand.
So the question is: How do we have an impact? How do we enact legislation today that will have an effect on energy prices, not just in the near term but in the long term as well? Well, we need a little more substance, don't we? And I think that starts with conservation-- the idea of using less energy.
It is important to note this is one area where this Congress has taken a positive step, passing for the first time in 32 years an increase in fuel efficiency standards for cars and trucks, and raising that fuel efficiency requirement to 35 miles a gallon by the year 2020. That will make a difference, and we need to work to make sure that is fully implemented.
But we have already seen, if we look back over the last few decades, the impact that conservation can have, because today our economy uses over 30 percent less energy to produce a dollar of goods or services than we required 30 years ago. Legislation such as the conservation measure I described and was pleased to support, will help keep us on track to improve conservation.
Second, clean renewable energy. Again, this pending legislation does nothing to encourage alternative, renewable energy, and yet we have legislation that the Senate previously considered that has strong bipartisan support that would expand the incentives for wind, solar, geothermal, biomass, and high-performance wood-burning systems. We have that legislation. It has passed the Senate 88 to 8. It extends the production credits. And it is good for the environment, of course, as we all know renewable energy is. In New Hampshire, where we have a strong history of sustainable forestry, incentives for high-performance wood-burning systems are good for the local economy, and it plays a real part in reducing our dependence on energy imports.
So we have conservation and we have renewable energy, but with oil reaching $140 a barrel, it is not realistic to think we can reduce our energy imports if we don't produce more here at home. We need domestic production of oil and domestic production of gas, in addition to these clean renewables and conservation initiatives.
One of the previous speakers talked about 10 to 15 billion barrels of oil in the northernmost part of Alaska, billions of barrels of equivalent reserves on the Outer Continental Shelf, deep offshore. And most importantly, today we have the technology to take advantage of these reserves in a way that is more efficient than ever before, and in a way that protects the integrity of the environment better than ever before. The time is now to employ this technology, to unlock this opportunity, and in doing so to have a real impact on the cost of energy in the United States and around the world.
The same individuals who are opposing these initiatives today opposed them 5 years ago, 10 years ago, and 20 years ago. Unfortunately, we didn't take action 5 years ago or 10 years ago, and now they say: Well, if you allow additional production deep offshore, it will take some time to take advantage of those reserves. Of course it will take time. Everything takes time. It takes time to build a new wind farm. It takes time to construct a new nuclear powerplant. It takes time to have the conservation proposals I talked about earlier reach their full impact. But that is all the more reason to start acting today.
Without question, an American commitment to take better advantage of resources here at home will have an impact on the predicted cost of energy out in the future. It will bring down the cost of energy today.
Mr. President, I ask unanimous consent for 1 additional minute.
Mr. President, conservation, clean renewable energy, and production--this is a balanced approach, and it is the only approach that will attack on all fronts and ensure that we bring down the cost of energy for all Americans.
A final point I want to make is that even as we act in these areas, there is one other area we need to act on, and that is helping those who don't have the financial means to work through the coming winter months and the high cost of energy. Senator Gregg, who is now on the floor, has introduced legislation to double funding for the Low Income Heating Assistance Program, and to do so in a way that is fully paid for. I am proud to cosponsor that legislation, and it is legislation that should also be included in this final energy package.
We need an opportunity to offer amendments on renewables, on low- income heating assistance, on production, in order to make this a meaningful energy package that makes a difference for all the people in the country by bringing down those energy costs we see every day at the pump and across the country.
Mr. President, I thank you for the time, and I look forward to the opportunity to offer amendments, which I hope will be supported aggressively on the floor.