Energy
Mr. Speaker, I thank the gentleman for yielding. I rise to bring attention, as the gentleman is doing so well, to the natural gas crisis that our country is facing today, and I want to thank the gentleman for the commitment he has shown on…
Mr. Speaker, I thank the gentleman for yielding. I rise to bring attention, as the gentleman is doing so well, to the natural gas crisis that our country is facing today, and I want to thank the gentleman for the commitment he has shown on this issue, for the clarity with which he articulates the concerns that we all have in this country, that we ought to have anyhow, about the natural gas crisis, and for calling upon the leadership of this Congress to bring this matter to the floor so Members can take a vote on it and people in this country can have the benefit of the wise legislation that the gentleman is proposing.
The price of natural gas is approximately three times the average price from 2000 to 2005, and it is nearly seven times the average price during the 1990s. This natural gas crisis has been building for years, for the last 2 years, and has suddenly erupted as those hurricanes hit the gulf down there and the aftermath has paralyzed much of the gulf natural gas and oil production. No region in the United States provides the United States with more natural gas than the gulf where 10 billion cubic feet are produced each day, representing approximately 20 percent of the gas consumed in the U.S. and 16 percent 16 percent of that is produced. This tight market, as the gentleman points out, is exacerbated by the devastating impact of these hurricanes we have just lived through, Hurricane Rita and Hurricane Katrina, and the price has risen dramatically from $3.21 in 1995 to $12.68 per million BTU today, as opposed to other countries.
For example, China pays 4.85, Iran pays $1.21, Russia, 95 cents. I mean, how can we compete with that? How can the American consumer compete with these sorts of prices? According to the Energy Information Agency, the heating costs are expected to increase somewhere between 69 to 77 percent for homeowners in the Midwest, for Southerners, 17 to 18 percent, for Northeasterners, 29 to 33 percent, and people can expect huge heating costs increases. The average family is looking at heating costs of $1,666 this year, which is a $433 increase from last year. These are huge numbers. The expected rise of home energy costs will particularly affect low-income people and fixed-income individuals.
According to a survey on the rising energy costs on poor families conducted by the National Energy Assistance Directors Association, 32 percent of families will have to sacrifice medical care, 24 percent will fail to make their rent or mortgage payment, 20 percent will be without food for at least a day, and 44 percent will skip paying or will pay less than their home energy bill in the past years. So these are devastating results.
As others have said and as the gentleman has said tonight, most devastation is going to take place in our economy and the capacity of our businesses that rely on natural gas as a major feedstock to survive. Fertilizer plants, chemical plants, food processing plants, other small businesses, our Nation's 32 million small businesses are going to suffer if we do not do something about these natural gas prices.
That is not the end of the story. Homeland security, national security all are affected here. This is a blue collar, working-family issue. People simply are going to be unable to afford it, and their families are going to have to sacrifice as a result of it. It is something we can do something about. A lot of the time we face these issues and we know the consequences and we do not have any way to get out of it. But this time we do. It is a pretty simple solution: open up the Outer Continental Shelf to gas production. It is as simple as that. If we do that, we can fix the problem for God knows how many years into the future.
I think it is a solution that this Congress cannot afford not to take at this time, and the American people cannot afford to take at this time. And I applaud the gentleman for the efforts he is making to get this brought before the Congress, before the people of this country and have an honest debate about it, and then I believe we can get this bill passed. I think the people of America, once they see it, will push our colleagues to make the right choice, and I thank the gentleman for his leadership.
Mr. Speaker, if the gentleman will yield, I can tell my colleagues that this has an effect on the balance of payments on trade deficits that our country is so concerned about. Domestic production is going to mean we will have to import less and less of our fuel for this country's needs, and I just think it makes sense on every score that we look at it. It is a blue collar working issue, it is an economic issue for our economy, it is a national security issue for our country, and it is an issue of global competitiveness for our country. I think it encompasses so many important points that the gentleman has pointed out, and I think it is time for this Congress to face up to the fact that we have to do something about it.
This is a bipartisan issue. We had a press conference a few weeks ago and you had Democrats and Republicans pushing this idea together.
I think it is a welcome, I think, respite for the country to see us come together on an issue, and embracing it in a bipartisan way to try to get the Congress to make the right choice here.
I think you are exactly right. We have encouraged, by national policy, the use of natural gas for the very reason that it burns cleaner; it is better for the environment when we are using it. And as you point out, the production of it has not resulted in a catastrophe that anybody has been able to single out as a reason why we should not produce it in these areas that have been foreclosed so far.
We cannot have it both ways. You cannot encourage the use of natural gas as a cleaner-burning fuel, and at the same time see prices go up, at the same time make it harder for people to get access to that fuel without paying higher prices. It does not make any sense. So if you are going to end up encouraging it, you have got to have a policy that makes it affordable for people.
If I can get back to your environmental point for just a minute. We are relying a lot in the future on the importation of liquified natural gas from other parts of the world. The process to deliquify that and gassify it again is a very problematic environmental question. We are concerned about fisheries that are going to be affected by the heat that is generated by this process in the gulf, in these facilities that are used to gassify the liquified natural gas. We do not have answers to that.
We have people who are objecting to the location of these plants around the country because they worry about this sort of issue. Yet as you point out, there is such an increasing demand in the country for natural gas uses, that means we are going to rely on imported natural gas and suffer the consequences of trying to figure out how to degassify it in a way that does not cause environmental degradation.
If we can produce it ourselves, we would not have that sort of issue. We would have all of the pipelines to distribute from down in Louisiana and the rest of the gulf and other parts of the country. We can move it straight from the point of exploration to the distribution points around the country and solve this whole issue of how we handle the regassification of liquified natural gas for use in this country.
It is very difficult. The ports in the gulf and Texas, Louisiana are trying very hard to work with putting liquified natural gas into a gas form again. But there are many places around the country where this is simply unacceptable technology and, consequently, it means that the supply that is available around the world is still hard to get into this country; but when we do, we do face environmental challenges that we otherwise would not face.
Now, the gentleman makes the point about national security. Our own government estimates that by 2020 half of our energy will be produced by unfriendly and unstable governments. Our reliance on natural gas from these countries is going to get us in the same fix we have been in for all these years with oil. And to go down the roads we are headed in a direction we know does not work for us currently does not make any sense for fuel so valuable for us in the future and where we are placing such reliance on it in the future.
I think for all the reasons we pointed out, for our small businesses, for our own domestic chemical producers, for our own fertilizer producers, for our homeland security concerns, and our national security concerns, and just for the idea that the average consumer needs to have access to energy that is affordable, these just argue very strongly for our working the solution out that has us exploit our own resources and rely on ourselves to bring this vital energy source to our people.
That is absolutely true. Most folks around my way will tell you the best fishing is around these platforms. We look to them as landmarks to get out there and get good fishing in.
I want to give the gentleman the last word on there because it is his bill and it is his passion that has brought it to this point. But I do want to say that we are the only developed nation in the world that has locked up our access to our offshore gas resources. That ought to be a telling point. We have 406 trillion cubic feet of natural gas along the OCS. And currently we produce about 9.5 trillion cubic feet per year, which means we have 50 years at our current usage of natural gas that is locked up just by the fact of our policy having done it. Nobody did it to us. No country forced us to do it. There are not any international treaties or anything that prevents us from doing it. It is our own legislation, our own lack of will to make this decision.
I think it is high time we turned our attention to solving our own problems here at home in this arena. I want to thank the gentleman again for what he has done to bring it to the attention of the country, and I am proud to be associated with the gentleman on this issue.
Mr. Speaker, I thank the gentleman.