Grassley Q&A: Gas Prices


  

Q: What can be done about high gas prices?

A:  America’s energy policy needs to be a three-pronged approach.  First, we need to develop traditional oil and gas resources in America. Second, we need to continue to push for more development, production and use of alternative renewable fuels. Third, we need to conserve energy both as a nation and as individuals.

 

Q: Why is drilling important? 

A:  Tapping domestic sources of oil needs to be part of the short-term solution. It’s not the total solution because God only made so much fossil fuel. It only makes sense to tap America’s natural resources instead of shipping so much U.S. money overseas, in many cases to countries that help train terrorists intent on destroying America. In addition, increasing the supply of oil will help reduce the price. That’s economics 101.

 

Q: Why are renewable energy sources important?

A: Renewable energy sources are part of the short-term and long-term answer. Renewable energy sources today include wind, biomass, biodiesel, ethanol and solar. Technology continues to make each of these alternatives more viable and effective. A second generation of ethanol is emerging that will be able to use switchgrass, woodchips and other plant materials to produce ethanol. Renewable energy sources, especially corn-based ethanol, have taken hits from organizations like the Grocery Manufacturers Association which is spending big money on a D.C.-hatched smear campaign. The Grocery Manufacturers Association needed an excuse for higher food prices – which really come from higher energy costs - and they are trying to make ethanol the scapegoat. This is intellectually dishonest and factually wrong. An Iowa State University study found that gasoline would be 30 to 40 cents higher per gallon if not for ethanol.  A Texas A&M study concluded that the biggest driving force behind the higher food costs is higher energy costs. Bottom line, the increase in food prices is because of fuel prices. Without ethanol, fuel prices and, in turn, food prices would be even higher than they are today, and energy prices would be higher than they are today. The Grocery Manufacturers Association claims it supports the second generation of ethanol, but the only problem is that the next generation won’t be produced if the first generation is undermined by a short-sighted attempt to create a scapegoat for higher prices for groceries. It doesn’t make sense to scrap the three decades of forward-looking work in technology and policy making that’s gone on to foster today’s renewable energy industry.

 

Q: What about energy conservation? 

A:  Conservation is important because decreasing demand also drives prices down. Every single individual can make a difference with our actions by driving less, carpooling and buying vehicles that get better gas mileage. The federal government needs to conserve and provide leadership with its own example. I’ve spoken out against SUVs and chauffer-driven town cars idling outside the Capitol and other official buildings in Washington. One person at a time, we can all do more to make America more energy independent.