Mr. Speaker, I ask unanimous consent to claim the time of the gentleman from Illinois (Mr. Emanuel). Mr. Speaker, I rise today to stress how important it is for the United States to take a bold new approach to our energy supplies. Our…
Mr. Speaker, I ask unanimous consent to claim the time of the gentleman from Illinois (Mr. Emanuel).
Mr. Speaker, I rise today to stress how important it is for the United States to take a bold new approach to our energy supplies. Our economy and way of life depend on cheap oil. In many ways, cheap oil is responsible for our prosperity. Since oil provides about 40 percent of the world's energy, a peak in global oil production will be a great turning point in human history. Oil and natural gas literally transport, heat, and feed our country. Therefore, we must summon the political will to act immediately, diversify our energy supplies, and mitigate the negative changes that will undoubtedly accompany the world peak in oil and natural gas production.
Peak oil is a fact, not a theory. Oil production has now peaked in 33 of the world's largest 48 oil-producing nations.
A recent Energy and Air Quality Subcommittee hearing showed that a growing number of energy experts agree that a peak in world oil production is either imminent or likely to occur by 2015. The United States demand for oil continues to increase by about 2 percent per annum. As global demand has increased faster than production, the once substantial cushion between world oil production and demand has decreased. This phenomenon has increased the price of oil. Consequently, huge amounts of American money, up to $25 million per hour, go abroad to pay for foreign oil. Middle eastern countries, flush in oil dollars, help fuel the terrorism we are fighting. Some say market forces will solve the peak oil problem. They argue that as we approach or pass the peak of production, oil prices will increase and alternatives will become more competitive.
However, no alternative currently available will make it more competitive. However, there is no alternative available anywhere near ready to replace oil in the volumes we use it today. What is more, even today's oil prices do not accurately reflect the full social costs of oil consumption. Currently, Federal and State taxes add up to about $0.40 per gallon of gasoline. A World Resources Institute analysis found that fuel related costs not covered by drivers are at least twice that much. Oil prices do not include the full cost attributed to road maintenance, the financial risk of global warming or threats to national security from importing oil. Without these externalities in the market, significant private investment in alternative technologies will not occur.
Over the past hundred years, fueled by cheap oil, the United States has led
a revolution in the way the world operates. Replacing this resource in a relatively short time is an incredible challenge, an imperative to the survival of our way of life. The United States has faced such challenges in the past. In response to great challenges and inevitable threats, we pooled our resources and ingenuity to build an atomic bomb in just a few years and put a man on the moon in a decade. We can and must do this again. We must commit to a bold new initiative.
To eliminate our dependence on foreign oil and develop a new economy based on renewable, non polluting energy, we need a massive, long-term investment in research for both basic and applied science. We must produce effective policies that create a new generation of scientists devoted to changing the way we produce energy. Additionally, we must commit to decreasing our demand for oil. We can start by increasing efficiency. Transportation in the United States accounts for 16.5 percent of the world's oil consumption. Transporting goods and people by rail is at least five times as efficient as automobiles. We must revive and reinvest in our passenger and freight rail system. Looking at our automobile fleet, modest increases in fuel efficiency, using existing technology will decrease our oil usage by about 1 billion barrels per year. However, the turnover rate for the automobile fleet is 10 to 15 years, therefore, we must start immediately.
The buildings in which we work and live are terribly inefficient. We could easily reduce their energy consumption by one-half. We must immediately weatherize and make more energy-efficient tens of millions of buildings. Our bold new initiative must instill these ideas into the American consciousness. The sooner we start, the smaller our sacrifices will be.