From the desk of Congressman Ehlers:
The price of gasoline has risen dramatically in West Michigan over the last month. It shot past $3.50 per gallon this week, and in some parts of my district it is as high as $3.70. I have a number of suggestions to alleviate the burden we are experiencing at the pump. This week, I wrote a letter to Speaker Pelosi, President Bush, and Congressional leaders outlining some of those ideas, which I would like to share with you.
A major factor contributing to the price we pay for gasoline and diesel fuel in the United States is global demand for oil. Oil is traded for well over $100 per barrel today, and reducing demand will help reduce the price. As you can see in this graph from the U.S. Energy Information Administration, the price of gas is greatly affected by the cost of crude oil. With this in mind, there are a few things we can do to reduce the price of fuel.
First, I propose we consider suspending petroleum acquisition for the Strategic Petroleum Reserve. The reserve is filled to 96 percent of its capacity, and while the stockpile plays an important role in protecting the United States from oil supply disruptions, we can help reduce the demand for oil by suspending acquisitions, thus impacting the price we pay for gas.
Second, I am urging the Bush Administration to streamline the permitting process for building or expanding oil refineries in the United States without waiving environmental laws. It has been 30 years since a new refinery has been built in the United States, and adding capacity could improve the supply of fuel in the U.S. market, which would help lower prices.
Also, I would like there to be more transparency from oil-producing countries. Private oil companies are required to be transparent in their business dealings, but the majority of the world’s oil comes from nationalized oil companies controlled by foreign governments. The United States should consider working more closely with those countries so that information about production and oil reserves would be more reliable.
Finally, while it is difficult to change, the low value of the U.S. dollar is having a negative impact on how much we pay for fuel. If the dollar had the same value as it did one decade ago, it would drive down the cost of oil dramatically. The weak dollar makes it much more costly for the United States to import oil, which makes our fuel more expensive. Despite this, I do not think it is appropriate for the United States to drill for oil in protected areas. The risk of destroying our environmental assets is not worth the potential benefit.
None of this will happen overnight, but there are some things that you can do right now to make your vehicle go farther on a tank of fuel. Inflating your tires to at least the maximum pressure specified on the sidewall of the tire, driving less aggressively, keeping your car well-tuned, and carpooling can do a great deal to increase your gas mileage and reduce the financial burden of today’s high fuel prices.
More information on increasing your vehicle’s fuel efficiency can be found at http://www.fueleconomy.gov/.
I have been a strong advocate for improving public transportation in West Michigan. I am helping local officials at The Rapid establish a bus rapid transit system. Nationwide projects such as this, which is currently under development, can help drive down the price of fuel for everyone in our area.
I am well aware that fuel prices are putting an incredible burden on people who rely on a vehicle to get to work, take their children to school or day-care, and perform other necessary tasks. Gasoline and diesel fuel prices are crippling local businesses where transportation is an integral part of their livelihood. I rely on my car, and I am feeling this pain as well. I will continue to work hard in Congress on this issue so that we may all find some relief at the pump.
Best wishes,
Vernon J. Ehlers
Thanks Vern!
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