Putting the Past Behind Us: A New Energy Future for America
I do not need to tell you that our nation is staring down the barrel of a huge energy crisis. Anyone who has filled up their gas tank, paid their home energy bill, ridden on an airplane, or bought groceries recently knows that the cost of gasoline and energy are sky-high which has caused the price of other commodities to soar as well. These exorbitant energy prices are taking their toll on American families across our nation. Hardworking Americans in all fifty states are struggling to make ends meet and are crying out for relief.
As we fight to lower energy prices and lay the groundwork for a clean, independent energy future, I can't help but ask -- how did we get here?
Eight years ago, two oilmen took the reins of America's energy policy and have not looked back since. At the start of his first term, our oilman-in-chief, President Bush, stacked his energy task force with officials tied to the oil industry. Then he outsourced the writing of his energy plan to then-Enron CEO Ken Lay, who turned Enron's priorities into our nation's energy policy.
Even before that, Republicans were hard at work protecting big corporations when in 2000 then-Senator Phil Gramm slipped the "Enron-loophole" into an appropriations bill. This little loophole, which allowed everyone to trade in oil futures, was responsible for excessive oil speculation.
Experts have estimated that excessive oil speculation is responsible for adding $20 to $30 to a barrel of crude oil. Moreover, a recently released independent report conducted by Michael Masters of Masters Capital Management and Adam White of White Knight Research & Trading clearly demonstrated that it was not supply and demand driving oil prices up, but instead excessive speculation.
The cozy relationship between Republicans and oil companies was again exemplified by the recent revelation that administration officials at the Interior Department were improperly accepting gifts, using drugs, and engaging in sexual relationships with energy company employees. Yes, the administration is literally in bed with Big Oil.
What is almost more upsetting than this pervasive culture of cronyism is the complete lack of direction radiating from the White House on energy policy. During his 2006 State of the Union address President Bush declared that America was "addicted to oil" and promised to take the lead in breaking this addiction.
As we all know, the only way to break our addiction to fossil fuels is to invest steadily in renewable energy research and development. Even President Reagan understood this when, for example, he requested well over $100 million to fund geothermal energy research during his administration.
Yet in 2007 and 2008, President Bush requested zero funding for geothermal energy, and the Republican Congress in turn provided only $5 million and $20 million, respectively, for this much-needed research. How does this administration expect to wean Americans off of oil when its leaders fail to create a stable investment environment? How can Americans break their addiction when renewable energy researchers and developers cannot be sure that their research will be funded from one year to the next?
Enough is enough. After winning slim majorities in the House and Senate in the 2006 elections after 12 years under Republican control, this new Democratic-led Congress pledged to enact a 21st century energy policy that would lower prices and put our nation squarely on the path towards a clean, independent energy future. We are very proud that we have already passed key initiatives into law, including the enactment of the first new vehicle fuel efficiency standards in 32 years.
This week Democratic leaders in Congress unveiled comprehensive energy legislation that will build on the progress that we have already made and lower costs to consumers and American taxpayers, invest in renewable energy sources to create American jobs, expand domestic energy supply and create greater energy efficiency and conservation. This legislation is what the American people have demanded and what they have been waiting for.
More specifically, this bill addresses America's energy crisis in both the short term and the long term:
By releasing oil from the Strategic Petroleum Reserve, we will immediately lower prices at the pump for American families struggling with high gas costs. We will replace this oil as gas prices stabilize.
Meanwhile, by investing billions of dollars over the long term in renewable energy, energy efficiency, and mass transportation, we will harness innovation and create good-paying American jobs while strengthening our energy security.
By expanding access to offshore oil reserves and encouraging responsible drilling, the bill promotes oil exploration and will lead to increased domestic energy production.
Since the ban of offshore drilling expires at the end of the month and we have no hope of persuading President Bush to sign a new ones, this bill ensures that oil companies will not be able to drill three miles off our coastlines but only at 50 miles out and only with the consent of the coastal state.
By promoting energy efficiency and conservation in buildings, thorough updated building codes and incentives for energy-efficient construction, this bill will lead to reduced energy use and lower utility bills.
Under this bill, we would enact our first national renewable electricity standard, where power companies would be required to generate fifteen percent of their electricity from renewable sources by 2020, reducing air pollution from power plants and helping address the threat of global warming.
As Americans use more public transportation in the face of high gas prices, this bill will help transit agencies deal with the added costs of increased ridership by providing $1.7 billion in grants.
At a time of record-breaking oil company profits, this bill will require oil companies to pay their fair share by repealing tax subsidies they do not need and putting that money into alternatives, and requiring the federal government to collect oil royalties due to the American people.
This comprehensive energy legislation is the result of a serious effort on the part of this Congress to bring down gas prices now and invest in a clean renewable energy future. And it will provide this country with the American-owned energy policy that this Administration has failed to deliver in the past eight years.
I am pleased to announce that the House of Representatives passed this comprehensive energy bill on September 16, 2008 and sent it to the Senate for consideration. While I do not know if Vice President Cheney will let President Bush sign this bill, I do know that House leadership did not have any closed door meetings with energy companies to write it.
Not surprisingly, Republicans have brought forth their own bill that subscribes to the same Bush-Cheney energy policies written by and for big oil companies and corporations. Under their plan, Big Oil gets more land, more oil, more taxpayer dollars, and all the record profits, while American families get stuck paying record prices at the pump.
However, there is no need to fear. After years and years of Republican control over our government, the Democrats have come to town to put the brakes on the Republican record of failure and to pick up the pieces. We are proud of the progress that has been made and plan to go even further by bringing forth additional legislation to deal with excessive oil speculation soon. Let us hope that President Bush and the Republican Party allow us to finish the job.
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The crisis in energy is the failure to act. The technology exits for zero-carbon energy from wind and solar. In fact several Europenan countries are well above 50% renwable. We can do it too. NOW!
In a plan I call "WINDfall for America" a 3 cents-per-kWh on all electrcity would generate $10 billion-per-month (yes, PER MONTH!) which could easily pay for the infrastructure needed to convert all residential, commercial and transportation energy use to electricity.
After that, the same 3 cents-per-kWh would generate about $900 billion per year to be used to offset costs for other peolpes needs (SS, healtcare, etc).
If you don't believe me run the numbers vaialble from the American Information Administration.
BUT ... also consider this. The 3 cents-per-kWh is an INVESTMENT by "We the People" NOT a DONATION! That means "We the People" reap the benefits of of our investment, and "We the People" decide how the pay-off will be spent.
Why don't we stop calling it an energy crisis? It's not. The world is producing more energy than ever before. What this simply is is a waste crisis. Americans are more wasteful than ever before.
Stop the waste and the problem goes away. Don't stop wasting and no bill, no matter how clever will pull this one out of the fire.
Yup and don't forget Cheney's part in all of the last 8 years. As another previous comment alluded to.
We need long-term tax breaks for investing in renewables. the current policy of letting them expire each year makes it impossible to do any long-term planning and investing by manufacturers or consumers.
Rep Slaughter,
Thanks for taking the time to address this serious issue facing us.
However, I must question how serious we are taking this. Take away the pandering aspects of energy policy, e.g. ethanol, and take away the pie in the sky, e.g. the hydrogen economy, and we are left with some reasonable possibilities and some expensive alternatives.
Yes, conservation and efficiency will be the best first step where policy gets a good bang-for-the-buck and immediate results and it will be a good foundation for long term solutions that are going to cost us.
Let’s be specific:
Where it comes to transportation, put more into our rotting rail system, not less. Again, Europe is showing us the way. Quit subsidizing ethanol, Big Oil, (and arguably) the airline industry and put those monies into Rail. Penalize single commuters- encourage car pooling and public transportation.
Expand home efficiency credits or even make direct payments to home-owners and commercial building owners to upgrade insulation and appliances.
So there is the initial “easy” part for conservation and efficiency.
Keep in mind or inform yourselves (Congress) that the long term doesn’t have a lot of time left. Oil producing nations are exporting less oil each year for many reasons. Mexico will stop exporting by 2011 due to their own use and precipitous declines in oil field production.
Lastly, ignore bipartisanship, as it will delay what needs to be done and water your efforts down.
Good Luck to us all!
Right on target, Rep. Slaughter! While the headlines have focused on Economygate, Deregulationgate, Grammgate, and Palingate, the Obama campaign has been slow to set sights on Energygate and Transitgate.
The Dem-led energy bill is a laudable step - especially as it emphasizes public transportation. This country's biggest energy and transportation need is for more public transportation - especially ELECTRIC, which is more efficient and versatile, as diesel prices skyrocket.
But how many voters are aware that John McCain has been the most ferocious OPPONENT of Amtrak in the Senate? That's he's promoted oil-dependent highway travel and airlines? And that he's fought major rail transit projects such as those in Minneapolis and Phoenix? See:
John McCain's long hostility to rail public transport may now be liability
http://www.lightrailnow.org/news/n_newslog2008q3.htm#USA_20080711
McCain worse than Bush on Amtrak and transport policy
http://trains4america.wordpress.com/2008/02/07/mccain-worse-than-bush-on-amtrak-and-transport-policy/
John McCain and his agenda on Amtrak
http://www.boston.com/lifestyle/green/greenblog/2008/07/john_mccain_and_his_agenda_on.html
"he outsourced the writing of his energy plan to then-Enron CEO Ken Lay, who turned Enron's priorities into our nation's energy policy"
That is totally not true. Enron was a Natural Gas company, was invested heavily in wind power, and had statiioned themselves to allow carbon trading had Kyoto been ratified.
The reason why Enron went bust is BECAUSE of the current energy policy. Had we switched to Wind and Gas, as Al Gore and T Boone Pickens currently advocate, they would be thriving today.
We didn't get here in 8 years. Back in 1980 the American people were given a choice: Either go stay with Grampa Jimmy who would make us eat our vegetables and get to bed at a reasonable hour or spend the summer with Uncle Ronnie, eating ice cream and spending all day at the carnival for free!
We went to the carnival and never looked back.
Here's a new slogan about the Republicans in power: All Ego, No Pride.
(Obama camp, feel free to use that)
Was that Slaughter on Rachel Maddow's show the other day? She seemed to know her stuff.
Hate to break it to everyone, but as long as it is cost effective to ship raw materials to China, have China crank out plastic dog poop, and then ship it back to America, fuel is cheap. At four, five, six bucks a gallon, it's still cheap. When 97% of the crap in Wal-Mart and Home Depot comes from China, then gas and diesel are cheap. That is the tipping point — not the price at the pump.
The solution is to separate those two equations. Put something else in the car's tank. Because as long as ocean and air transport are burning the same thing that we're getting at the pump, we're going to have this problem.
Drilling for more oil does nothing when our refineries are maxed out. We're using 98% of our refinery capacity, which is basically 100% when you factor in maintenance requirements. All of you folks who are chanting "drill, drill, drill" and who are not investing in new refineries are shooting yourself in the foot.
Refinery capacity:
http://www.eia.doe.gov/pub/oil_gas/petroleum/data_publications/refinery_capacity_data/current/refcap08.pdf
"Drill Baby Driil"...... the New Mantra for Morons!
"If the gloves don't fit..You must acquit"....well, birdbrains need something they can understand..but in both cases they are flat out Wrong. Even T boone Pickens knows that. And He IS an "Oilman".
It is time for a paradigm shift for this country and the world, to Smart energy, not energy from the 1900's. It is also the perfect answer to the awful economic situation we are in right now. The US Can be the world leader again in New Energy Technology ...That is the the Next Economic and Business wave of the World..
Ok who's went on Vacation during the gas crisis...the Dems
Who wants to only hear about Natural Gas - Nancy Pelosi (BTW she just invested $200,00 in Natural Gas stocks HMMMMM)
You say Reagan even knew of the problem well Clinton was in office for 8 years how much did he accomplish getting us of Oil?...Nothing
And the GOP'ers stayed in DC during the vacation?
The funniest (or saddest) thing I ever heard was John McCain, member of the Senate, talking to a group in California and telling them that Congress needed to get back to work. The senator blaming the senate... that's rich.
How do you say that with a straight face?
I'm waiting for a Nixon or FDR joke... that's the only game most of you can play. "Oh yeah, well what did your guy do?" Who cares? It's 2008 — I want to hear what the two guys running for president are saying they'll do.
You folks who play the us vs. them game are the biggest part of the problem.
"Eight years ago, two oilmen took the reins of America's energy "
ehh wha?
Carter Doctrine?
http://en.wikipedia.org/wiki/Carter_Doctrine
G.W.B.,. .C.h.e.n.e.y.,. .R.i.c.e. .e.t. .a.l.i.i. .w.e.r.e. .t.h.e. .o.n.e.s.. .w.h.o. .m.a.d.e. .t.h.e. W..H .a. .b.r.a.n.c.h. .o.f. .t.h.e. .o.i.l. .i.n.d.u.s.t.r.y..
I'm referring to the history in this country of building unsustainable infrastructure, which does go back to the 50s, 20 yrs before the Carter Doctrine.
Frankly, I hate the Bush-Cheney regime, but their arrogance was nurtured and their twisted ideas hardened starting in the Nixon administration.
Do your homework, this problem didn't pop up 8 years ago. The systemic rot may go back as far as FDR's meeting with the Saudi King in 1945 in order to secure what was (arrogantly) assumed to be a cheap and easy supply of oil.
This is worth repeating:
Experts have estimated that excessive oil speculation (resulting from Republican Phil Gramm's "Enron-loophole") is responsible for adding $20 to $30 to a barrel of crude oil. Moreover, a recently released independent report conducted by Michael Masters of Masters Capital Management and Adam White of White Knight Research & Trading clearly demonstrated that it was not supply and demand driving oil prices up, but instead excessive speculation. "
We don't need more drilling, we need less speculation. It shouldn't surpise anyone that Phil Gramm is John McCains favorite economic adviser.
Yes and Gramm is responsible for the deregulation that we are watching today. No oversight no honesty. It's "Fleece the Populous" on parade!
We NEED TO FIGHT FOR THE FUTURE SURVIVAL OF OUR SPECIES ON THIS PLANET. I hope the price at the pump climbs so high NO ONE WANTS TO DRIVE UNLESS THEY ABSOLUTELY HAVE TO. To hell with making it all better for Americans to waste and pollute. FIGHT FOR CHANGE IN THE WAY WE POWER OUR LIVES. IT SHOULD HAVE BEEN STARTED DECADES AGO. IT WASN'T. NOW WE ALL HAVE TO PAY THE PIPER FOR OUR LACK OF VISION.
alt energy becomes viable with high oil prices or huge gov't subsidies to make up the difference. funny how alt energy wasn't on the table when oil was selling for 10 bucks/barrel just ten years ago. where were you then?
Oh that is right, when there was NO BUDGET DEFICIT and we were starting to pay down the Reagan Bush DEBT....
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