PARAGON
05-28-2006, 02:29 PM
Schwarz: Place energy fate in our own hands
Off-shore drilling, alternative sources are ways to go
From farming to the automotive industry to our high-tech corridors, Michigan residents work in sectors where energy and jobs are closely intertwined. Thus, we are more susceptible to adverse outcomes when energy prices skyrocket.
The increase in gas prices has again forced us to examine our national energy policy. Short-term propositions, such as opening up the Arctic National Wildlife Refuge to drilling, do little to change the current landscape and inhibit the long-term development of alternative sources of energy. Furthermore, contrary to popular claims, opening the refuge would have no impact on current gas prices.
A better alternative is promoting energy independence and economic security. The continued development of alternative sources of energy, such as bio-diesels and ethanol, building new refineries, and expanding old ones and lifting the decades-old moratorium on drilling in costal waters are all integral parts of a comprehensive energy plan.
From now through 2025, total energy consumption in the U.S. is expected to increase more rapidly than domestic energy supply. Relying on short-term solutions to fill the inevitable gap between supply and demand will require us to import even more energy from countries in unstable regions of the world.
Furthermore, a continued failure to balance our domestic energy needs with the growing demands of other nations, China and India are good examples, will further imperil our economic security.
Cuba has contracted with China, India, and other nations to drill in Cuban territorial waters in the Florida Straits. Yet, due to a congressional ban put in place in the 1980s, we are not permitted to access the 115 billion barrels of oil and 633 trillion cubic feet of natural gas currently contained on the U.S. continental shelf.
It is due, in part, to these limitations that Hurricanes Katrina and Rita were able to disrupt 25 percent of the nation's oil production and 20 percent of our natural gas production. By expanding offshore drilling beyond the central and western Gulf, Americans would not only have greater energy supplies and lower prices overall, but also less price volatility should a natural disaster hit any one region.
But this isn't the sole solution to the challenge. Long-term solutions require us to reduce our dependency on oil and promote diversification in sources of energy. The House Resources Committee recently estimated that developing clean, liquid fuel from coal through a process called liquefaction could produce up to 2.6 million barrels of fuel per day within 20 years and meet 10 percent of projected U.S. oil demand.
Diversity in sources of energy benefits Michigan-grown, renewable clean-burning bio-fuels, such as ethanol and soy bio-diesel. A recent study by Policy Matters and the Apollo Alliance indicates Michigan could create an additional $7.7 billion of economic activity and more than 119,000 new jobs by growing its economy through the renewable energy sector.
We need to craft a policy that balances supply and demand, ensures reliable and affordable supplies of energy for the future, and provides responsible stewardship of our nation's resources.
Off-shore drilling, alternative sources are ways to go
From farming to the automotive industry to our high-tech corridors, Michigan residents work in sectors where energy and jobs are closely intertwined. Thus, we are more susceptible to adverse outcomes when energy prices skyrocket.
The increase in gas prices has again forced us to examine our national energy policy. Short-term propositions, such as opening up the Arctic National Wildlife Refuge to drilling, do little to change the current landscape and inhibit the long-term development of alternative sources of energy. Furthermore, contrary to popular claims, opening the refuge would have no impact on current gas prices.
A better alternative is promoting energy independence and economic security. The continued development of alternative sources of energy, such as bio-diesels and ethanol, building new refineries, and expanding old ones and lifting the decades-old moratorium on drilling in costal waters are all integral parts of a comprehensive energy plan.
From now through 2025, total energy consumption in the U.S. is expected to increase more rapidly than domestic energy supply. Relying on short-term solutions to fill the inevitable gap between supply and demand will require us to import even more energy from countries in unstable regions of the world.
Furthermore, a continued failure to balance our domestic energy needs with the growing demands of other nations, China and India are good examples, will further imperil our economic security.
Cuba has contracted with China, India, and other nations to drill in Cuban territorial waters in the Florida Straits. Yet, due to a congressional ban put in place in the 1980s, we are not permitted to access the 115 billion barrels of oil and 633 trillion cubic feet of natural gas currently contained on the U.S. continental shelf.
It is due, in part, to these limitations that Hurricanes Katrina and Rita were able to disrupt 25 percent of the nation's oil production and 20 percent of our natural gas production. By expanding offshore drilling beyond the central and western Gulf, Americans would not only have greater energy supplies and lower prices overall, but also less price volatility should a natural disaster hit any one region.
But this isn't the sole solution to the challenge. Long-term solutions require us to reduce our dependency on oil and promote diversification in sources of energy. The House Resources Committee recently estimated that developing clean, liquid fuel from coal through a process called liquefaction could produce up to 2.6 million barrels of fuel per day within 20 years and meet 10 percent of projected U.S. oil demand.
Diversity in sources of energy benefits Michigan-grown, renewable clean-burning bio-fuels, such as ethanol and soy bio-diesel. A recent study by Policy Matters and the Apollo Alliance indicates Michigan could create an additional $7.7 billion of economic activity and more than 119,000 new jobs by growing its economy through the renewable energy sector.
We need to craft a policy that balances supply and demand, ensures reliable and affordable supplies of energy for the future, and provides responsible stewardship of our nation's resources.