I want to thank my distinguished friend, Congressman Ed Towns. I think it's important to note of his leadership on the Energy and Commerce Committee for any number of years. We have joined together on understanding this issue as it impacts…
I want to thank my distinguished friend, Congressman Ed Towns. I think it's important to note of his leadership on the Energy and Commerce Committee for any number of years. We have joined together on understanding this issue as it impacts our very broad communities.
The distinguished Congressman, as I note, my good friend from Georgia, is on the floor as well. We all come from different districts. He comes from an urban-centered northeastern district that has mass transit very deeply, but as well it's interesting to note that the cost of gasoline impacts all of our constituents.
I come from a broad, if you will, expensive district in the State of Texas that has not only a fledgling metro system, a metro system that we are just beginning to build, mass transit, but as well it is a community that uses its cars.
We carpool. We carpool to work. We live very far apart. It is a very large district. Therefore, the cost of gasoline is very, very costly. So we have to come together to address this question from the perspective of how will the consumer feel? We know there has been a question, a bracelet everybody used to wear asking the question how would a certain heavenly person feel about a question. We now ask, how does the consumer feel?
So I rise today to say that I think it is important for this Congress to come together and to be able to push forward an energy agenda that really gets down to the real individuals that are burdened by this cause. So let me explain, Mr. Towns, what I believe is important.
First, let me applaud the leadership for their new direction in energy. It is an important direction. It is a greening direction. It focuses on alternatives. It focuses on creating green jobs and getting a sense of understanding about the smallness of the resources that are
available now, the fossil fuel and other energy resources that need to be utilized, and therefore it is important to, if you will, impress upon Americans the value of conservation. But, at the same time, I think there are a lot of other issues that we can discuss.
I believe we should accept the premise that there are a number of energy resources that this Congress needs to address. For example, I come from Texas, and obviously we utilize fossil fuel. I think it is important to recognize that fossil fuel is present, but I think we need to emphasize looking at independent producers. They were very prominent in years past. These are smaller companies.
I do believe we need to look at where we are exploring off the Gulf, where those States of Louisiana and Texas have willingly accepted the exploration of the Gulf in a safe and environmental way.
Two or three years ago, Congressman Nick Lampson and myself passed legislation to encourage the Federal Government to do an inventory of what was available in terms of fossil fuel resources in the Gulf. I think it is important. We know that there are challenges to exploring the Outer Continental Shelf. There are challenges to exploring ANWR. There are challenges in exploring the coast off the East Coast and the California coast and the Florida coast. I believe those issues are issues that we have to work with the local jurisdictions and the governors and consumers for that to be a comfortable process.
But let us not get stuck on that. There are resources in the Gulf. We have found that there is oil shale, I believe, that has been discovered in West Virginia. There are other domestic resources that have been discovered in Mississippi. We need to be able to utilize and to be able to encourage the safe development of existing resources.
We know that our own multinational energy companies are holding leases they have not utilized. I believe it is important to call these individuals into Washington. The President needs to call these individuals into Washington, the heads of these major companies, and let us discuss why these oil leases are not being utilized, because there lies a possibility of additional resources.
Mr. Towns, you know that we have been discussing over the years the increasing of minority energy entrepreneurs. They come in all shapes and sizes. But I happen to know an energy company in the State of Texas, Osyka, that is held solely by African Americans with domestic deposits. They have resources. But what do they need? They need investment. They are not overseas. They are right here in the United States, but they need investment.
So I think there are a lot of small, independent producers that the legislative scheme here in the United States does not foster their development, does not provide them access to capital, does not allow them to build on the resources that they have. You can be assured that the more resources we put out allows us to have the ability to bring down the cost of gasoline.
Let me add an additional point that I think should be considered. When you talk to the multinationals about the cost of gasoline, they will refer you to the antiquated refineries, that they need to build more refineries. That too requires a coming together at the table. I believe we need to have a discussion so they can explain what does it mean by having an antiquated refinery?
There is a new refinery being built in East Texas and in Louisiana. That refinery took a long time to build. But maybe we need to update the refineries. I know that is a questionable proposal and policy to make them more environmentally efficient and safe. That is a key element to dealing with this.
Before I yield back and wait a moment as you yield to the distinguished gentleman from Georgia, I want to cite some numbers that say that the Energy Information Administration estimates that the United States imports nearly 60 percent of the oil it consumes. The world's greatest petroleum reserves reside in regions of high geopolitical risk, including 57 percent which are in the Persian Gulf.
Replacing oil imports with domestic alternatives such as traditional and cellulosic ethanol cannot only help reduce the $180 billion that oil contributes to it our annual trade deficit, it can end our addiction to foreign oil. These alternatives should be matched with domestic production. That may help a lot of these small interested producers.
Also the individual oil companies, the large ones who have leases here in the United States, we need to have an inventory and get a determination, as I said, as to why these leases are not being developed. According to the Department of Agriculture, biomass can replace 30 percent of our Nation's petroleum consumption.
So there are ways we can confront this issue. One other way, of course, is to develop more professionals, which we have discussed, and I want to discuss that later.
Let me conclude by saying we have a real crisis in addition to the cost of gasoline. That crisis includes jet fuel. We are seeing the merger of airlines and also a crisis in the airline industry because of the cost of jet fuel. That too impacts on our consumers.
So I frankly believe as we discuss this, Mr. Towns, we should talk about what speculators have done to the energy industry. We should talk about minority entrepreneurs who are able to participate in this industry. We should talk about independent producers. We should talk about greening America. We should talk about conservation. And really we should get to the bottom line of how we help our consumers. I think if we bring all these elements together, we will be able to do so.
I will yield back to the gentleman and will join you at a later time.
I thank you very much. I'm glad to have an opportunity to engage again and to thank Congressman Towns.
As I have listened to both Congressman Johnson and Congresswoman Lee, I hope that what is gleaned to our colleagues as they listen to us is that there is a consensus, a meeting of the minds, that we've got to do something different. I applaud Congresswoman Lee's collaboration with her mayor, Mayor Dellums.
As I was standing here, I was reflecting on the work that our city is doing. We have Mayor Bill White, but I'm quite familiar with the Apollo Alliance, and I was just thinking that it's time now for another meeting to be able to join in that kind of expansive effort.
So, if the Apollo Alliance is listening, let me congratulate them, and let me tell them to come on down to Texas. We've had some meetings early on, but it's the whole concept of educating individuals to change their lives.
You said something else, Congresswoman, about energy. You used the word ``energy'' and the words ``energy industry.'' That's coming from what we perceive to be the oil capital of the world--Houston, Texas. I want you to know a lot of hardworking people are working in the energy industry, and they, too, see a new world of alternative fuels and also an opportunity to match, if you will, efficiently explored fossil fuels, because it does exist. There is something called ``clean coal.'' As I indicated to you, there is something in the gulf, outside of your birthplace in Texas and Louisiana, where they have been quietly exploring oil and gas for a number of years, and it has been efficient. Even during Hurricane Katrina we noted that those rigs still stayed safe in the gulf. So we can find ways to combine these efforts.
As I listened to Congressman Johnson and he took us chronologically to 2001, I want to remind him that post 2001, in 2002, there was created the havoc and the travesty and obviously, as he indicated, the crisis of the Iraq war. Whether or not the Iraq war was for oil, as has been debated, it destabilized the region. When you destabilize the region where all of the oil is coming from, you obviously dumb down the resources coming from that area.
But I wanted to bring to the attention of my colleagues that we know that Saudi Arabia, in this meeting that they've held in the last 48 hours, has suggested that they will increase oil production by 200,000 barrels a day to 9.7 million barrels a day, starting on July 1, in response to the current energy crisis.
The concern there, of course, is that China is increasing its needs, and even though we're sort of plateauing out, I do believe that this is an issue that might not be resolved by the increase in the per barrel per day, meaning the 200,000 barrels per day.
We need a summit. We need a summit here in the United States. We need to get all of the parties together, discussing these components--the high gasoline price, the lack of utilization of the independent producers, not giving capital an access to African Americans and to other minorities who, in fact, might be good stewards of the energy resources, such as those who are finding oil in the Deep South, such as those who are engaged in green and in alternative fuels such as wind.
I offered a bill on cellulosic ethanol, which, I think, is really one of the next steps. Of course, this was embodied in the Democratic conservation bill that included cellulosic ethanol. I know there has been debate over corn ethanol, but here is an approach: Through cellulosic ethanol, costly though it may be, it has a long-term impact.
I also believe it's important to support the legislation that has been offered by two of our colleagues--one to be, I believe, John Larson, who is moving forward on legislation that has to do with the speculator. We have heard, even today, oil analysts who have said that the speculators are adding an artificial price. In fact, the Enron loophole that was offered by Senator Graham has given a whole array, a whole new industry on speculation, and more and more energy companies are pulling back from that. They're dealing with their own product and with their own need, and I want to applaud them for that.
I want to cite Representative Van Hollen's Energy Markets Anti- Manipulation and Integrity Restoration Act. I happen to be a cosponsor of that legislation. I think it's important. I voted to stop the filling on the Strategic Petroleum Reserve, which will help American families by temporarily diverting the 70,000 barrels of oil that goes to the SPR a day and putting them out on the market.
What I think is important, again, Congressman Towns, is that we're not
having face-to-face discussions. I asked the question of one of the members of OPEC: What would be the possibility of Members of Congress being observers at the OPEC meeting?
The OPEC meeting has large numbers of African countries. It has large numbers of countries from South America. Then, of course, it has those from the Middle East. I, frankly, believe it's somewhat similar to treaty discussions, that it's somewhat similar to the discussion on race in South Africa when they were on track, that it's somewhat similar to the United Nations. It would be Members of Congress' representing the most powerful law-making body in the world, as described by others, their being able to go to the OPEC meetings as observers and understanding the process of how this oil and gas moves.
This does not diminish the call for conservation. But I do think it will open our eyes.
If I may quickly conclude so my distinguished friend from Georgia, who has made some valid points about the Iraq war that we are still suffering, I was reading something, Congressman Johnson, about the condition of the Iraq oil wells and the difficulty of bringing them online and the need for U.S. investment or other investment.
It is interesting, a lot of people think we are making a lot of money in Iraq; we are spending a lot of money in Iraq, I will tell you that.
Let me say this. I will thank all three of my colleagues. I will continue to work and pursue an answer. The Representative indicated he was very interested, and would go back and ask. The meeting is in September and I will pursue that. I don't have the exact location, but I believe it is in Europe. If so, it would be easy for us to go.
I think the other part would be to give the energy leadership of these multinationals, and obviously they are in my congressional district, but a forum to be able to have a conversation outside of a hearing setting. We need to ask the hard questions. We need to ask how much of the cost of gasoline is the refinery cost? How much of the cost of jet fuel is refinery cost? What is attributable to having old refineries, and what can you do to make the energy name of your industry more diverse, to have more green and more alternatives such as wind and biomass.
I am told that wind is very expensive, but you can't get that answer if we are not sitting down at the table.
I thank the gentleman for the idea of a summit. We may work on that. Let me conclude by saying we have been working in this Congress. I don't want anyone to think that we have not been sensitive. You listed a whole road map that you, Mr. Towns, as a senior member of the Energy and Commerce Committee have been very much involved in. For example, the Renewable Energy and Energy Conservation Tax Act of 2008, a combination of the Ways and Means Committee and the Energy Committee, which I think is very important because it encourages the development of innovative technologies, creating new jobs, reducing carbon emissions, protecting consumers, shifting production to cleaner renewable energy, and modernizing our energy infrastructure.
The note I want to end on is we have to get more young people involved.
And that is very important.
What I want to end on is we must get more of our young people involved in the energy industry. We worked on this, Congressman Towns. We had a bill about geologists. I have listened to Congresswoman Lee as the chairwoman of the Energy Brain Trust, and we are going to try and focus on that and push our communities, Hispanics and African Americans and other minorities and women, to get into this industry and provide their sensitivity and provide their perspective so that they can talk eloquently about what gasoline prices really mean when they are this high. And then to add to the broader community of America who is crying out for relief, I believe we can turn the corner, or we should, and to bring to all of America an opportunity to have reasonable energy resources, heat in the winter and air conditioning in the summer, and reasonable gasoline prices; because, frankly, I don't think that we can last much longer if we don't bring relief.
I thank you for bringing this very important special order to the floor tonight.
You have given an eloquent summary of the crisis that I think most Americans are facing.
I would like us to move past these hot months that we have right now and begin to look forward into particularly the colder areas of America and begin to think about what is going to happen with heating fuel and this new coming winter season. We sort of got the tail end of the high price of gasoline sort of as we were leaving the winter months or as we were getting into the summer months, and we saw a crisis of people going on a vacation and taking their kids places during the summer facing this very high cost for gasoline per gallon.
But I met with some of my power companies who provide energy, and, of course, I am in a warmer climate than many of my colleagues. But I am concerned about what we will confront with natural gas and other fossil fuels that may be utilized for heating people's homes. What a crisis for elderly and others and families who can't afford their heating fuels.
So I believe that today on the floor of the House we have offered a suggestion. A summit doesn't mean 3,000 people. It means getting all of the parties together that can sit at the table. Get this energy industry at the table. Let them lay out what is a concept of your company, because energy for me means that you are diversified under the concept of energy, green energy, alternative biomass, begin to look at how we can lay down this roadmap.
And then I think, of course, we need to emphasize the environmentally safe exploration of drilling, as my colleague indicated, and the reason why I say that is because it's still going on in the gulf, not as they say--I know it's difficult in other areas. But in the gulf, it's still going on, and it should be environmentally safe.
Then I think as members of the Congressional Black Caucus we need some meetings with the heads of the nations in the Continent in Africa, Angola, Guinea Bassu, Nigeria. Ghana is finding oil. And it would be very helpful to sit down and have a discussion as to how their product can be marketed where there is--I know the bottom line has to do with dollars--but where there is a sense of morality, a sense of rightness on how that works. And again, it ties into my inquiry and outreach that I am going to make to OPEC because I think a lot of heads are better than none. And you listed all of the good works of the Renewable Energy and Energy Conservation Tax Act of 2008, and I think it's important to note this is what the Democrats did.
But I want to invite people to come together during the Congressional Black Caucus, Mr. Towns, and we can join together under the energy brain trust. I must pay tribute to my predecessor, and you certainly knew him, Congressman Mickey Leland, who organized the brain trust, on the basis of getting a sense of morality in this industry. In fact, he was coming into it with another energy crisis that was certainly in that time.
So I believe that with all of the hidden resources that we still have, we will open resources that we can address. And the only reason why we're not coming together is I don't think that we're putting our heads together to be able to develop the kind of balanced policy that brings these people together.
I do want to make mention of the fact that I am looking forward to a roundtable discussion with leadership in my district. However, that is the beginning stages of what I think can be a larger question for this Congress to address, for leadership, for members of the Congressional Black Caucus, for our caucus members to address, because our constituents and poor constituents and elderly constituents and ailing constituents are impacted by the high cost of gasoline and heating oil.
And I thank the distinguished gentleman for giving us an opportunity to raise these crucial issues that I believe have to be raised.
Mr. Speaker, if the gentleman will yield, I want to thank Congressman Towns, and let me extend to my colleagues an invitation to come to Houston and let us have a summit, a discussion, beginning discussion for energy and getting a roadmap for energy.
I would like to thank my fellow CBC Member, Representative Tubbs- Jones for her consistent leadership on the issue of energy. ``I am proud to have worked with my dear colleague in the CBC on a number of occasions to promote a most energy responsible America.
We are all painfully aware of the devastation high energy prices have had on American families. This New Direction Congress, of which I am proud to be a part, is fighting to reduce our dependence on foreign oil and bring down record gas prices, and launch a cleaner, smarter energy future for America that lowers costs and creates hundreds of thousands of green jobs.
It is undeniable that America, today, is in the midst of an energy crisis. Just this weekend, Saudi Arabia, the world's top oil exporter, announced that it will increase oil production by 200,000 barrels a day to 9.7 million barrels a day staring July 1st in response the current energy crisis. While this is an important step in the right direction, it is not enough. At a recent world economic forum in Doha, I called for Members of Congress and the United States Government to participate in OPEC's deliberations, in regards to energy production.
I am extremely supportive of the legislation introduced by my distinguished colleague from Maryland, Representative Van Hollen, The Energy Markets Anti-Manipulation and Integrity Restoration Act, of which I am a proud cosponsor. This important legislation would close the so-called Enron loophole by adding energy to the list of items that cannot be traded on deregulated ``exempt commercial markets'', as well as closing the Foreign Board of Trade (FBOT) loophole by forbidding an exchange from being deemed an unregulated foreign entity if its trading affiliate or trading infrastructure is in the U.S., and it trades a U.S.-delivered contract that significantly affects price discovery.
Just last month, I voted to stop the filling on the Strategic Petroleum Reserve which will help American families by temporarily diverting the 70,000 barrels of oil that go into the SPR a day, and consequently has the potential to reduce gas prices from 5 to 24 cents a gallon, helping American families, businesses, and the economy as a whole.
There is an undeniable consensus on the importance of America achieving energy independence in the 21st century. It is critical that we terminate our dependence on foreign sources of oil, the majority of which are located in regions of the world which are unstable and in most circumstances, opposed to our interests. Accordingly, there is no issue more essential to our economic and national security than energy independence.
I was happy to vote for the Renewable Energy and Energy Conservation Tax Act of 2008, which is significant and comprehensive legislation that will make substantial strides towards energy independence for our Nation, while also encouraging the development of innovative technologies, creating new jobs, reducing carbon emissions, protecting consumers, shifting production to clean and renewable energy, and modernizing our energy infrastructure.
In addition to being a representative from Houston, Texas, the energy capital of the world, for the past 12 years I have been the Chair of the Energy Braintrust of the Congressional Black Caucus. During this time, I have hosted a variety of energy braintrusts designed to bring in all of the relevant players ranging from environmentalists to producers of energy from a variety of sectors including coal, electric, natural gas, nuclear, oil, and alternative energy sources as well as energy producers from West Africa. My Energy Braintrusts were designed to be a call of action--to all of the sectors who comprise the American and international energy industry, to the African American community, and to the nation as a whole.
Energy is the lifeblood of every economy, especially ours. Producing more of it leads to more good jobs, cheaper goods, lower fuel prices, and greater economic and national security. Bringing together thoughtful yet distinct voices to engage each other on the issue of energy independence has resulted in the beginning of a transformative dialectic which can ultimately result in reforming our energy industry to the extent that we as a nation achieve energy security and energy independence.
Because I represent the city of Houston, the energy capital of the world, I realize that many oil and gas companies provide many jobs for many of my constituents and serve a valuable need. The energy industry in Houston exemplifies the stakeholders who must be instrumental in devising a pragmatic strategy for resolving our national energy crisis.
That is why it is crucial that while seeking solutions to secure more energy independence within this country, we must strike a balance that will still support an environment for continued growth in the oil and gas industry, which I might add, creates millions of jobs across the entire country.
We have many more miles to go before we achieve energy independence. Consequently, I am willing, able, and eager to continue working with Houston's and our Nation's energy industry to ensure that we are moving expeditiously on the path to crafting an environmentally sound and economically viable energy policy.
Furthermore, I think it is imperative that we involve small, minority- and women-owned, and independent energy companies in this process because they represent some of the hard working Americans and Houstonians who are on the forefront of energy efficient strategies to achieving energy independence.
According to the U.S. Minerals Management Service (MMS), America's deep seas on the Outer Continental Shelf (OCS) contain 420 trillion cubic feet of natural gas (the U.S. consumes 23 TCF per year) and 86 billion barrels of oil (the U.S. imports 4.5 billion per year). Even with all these energy resources, the U.S. sends more than $300 billion (and countless American jobs) overseas every year for energy we can create at home.
I believe that we should mandate environmentally safe and efficient exploration techniques in the Gulf Coast which energy companies have demonstrated a willingness and capacity to utilize. By ensuring access to increasing sources of energy in an environmentally conscious way, I believe we can decrease our dependence on foreign oil.
I support innovative solutions to our national energy crisis, such as my legislation which alleviates our dependence on foreign oil and fossil fuels by utilizing loan guarantees to promote the development of traditional and cellulosic ethanol technology.
The Energy Information Administration estimates that the United States imports nearly 60 percent of the oil it consumes. The world's greatest petroleum reserves reside in regions of high geopolitical risk, including 57 percent of which are in the Persian Gulf. Replacing oil imports with domestic alternatives such as traditional and cellulosic ethanol can not only help reduce the $180 billion that oil contributes to our annual trade deficit, it can end our addiction to foreign oil. According to the Department of Agriculture, biomass can displace 30 percent of our nation's petroleum consumption.
Along with traditional production of ethanol from corn, cellulosic ethanol can be produced domestically from a variety of feedstocks, including switchgrass, corn stalks and municipal solid wastes, which are available throughout our nation. Cellulosic ethanol also relies on its own byproducts to fuel the refining process, yielding a positive energy balance. Whereas the potential production of traditional corn- based ethanol is about 10 billion gallons per year, the potential production of cellulosic ethanol is estimated to be 60 billion gallons per year.
In addition to ensuring access to more abundant sources of energy, replacing petroleum use with ethanol will help reduce U.S. carbon emissions, which are otherwise expected to increase by 80 percent by 2025. Cellulosic ethanol can also reduce greenhouse gas emissions by 87 percent. Thus, transitioning from foreign oil to ethanol will protect our environment from dangerous carbon and greenhouse gas emissions. With its commitment to American biofuels, this legislation calls for a significant increase in the Renewable Fuels Standard. It encourages the diversification of American energy crops thus ensuring that biodiesel and cellulosic sources are key components in the America's drive to become energy independent.
By investing in renewable energy and increasing access to potential sources of energy, I believe we can be partners with responsible members of America's energy producing community in our collective goal of reaching energy independence.