Like most Iowans, I find myself these days wincing when it comes time to fill up the gas tank. Throughout my five-day road trip to 21 Iowa communities at the end of May, I found gasoline prices hovering at almost $2 per gallon from Oelwein to Atlantic.
A surge in oil prices not only affects the price of a gallon of gas, it can depress overall economic activity. Higher fuel prices inflate the costs of doing business all along the economic chain. Eventually, the spike hits the consumer. Sooner or later, consumers are forced to dig deeper to buy a cup of coffee, an airline ticket or a cart full of groceries.
Prices at the pump are up from $1.20 in early 2002. Although Americans loathe to see gas prices hit two bucks per gallon, it still has not reached an all-time high when adjusted for inflation.
But that doesn’t make motorists, farmers or truckers feel less of a pinch at the pump. In an election year, some want to use the issue to win votes and assign blame. Let’s be honest. The blame rests in large measure on our dependence on foreign crude oil. We import nearly 60 percent to meet America’s needs. Beyond gasoline, crude oil is used to make rubber, plastics, asphalt and synthetic fibers.
As a federal policymaker, I have long advocated increasing America’s energy independence and loosening the stranglehold that the Organization of Petroleum Exporting Countries (OPEC) has on America’s economy.
When the 11-member oil cartel decides to curb production and limit supplies, it can have significant economic consequences for the United States. Just consider OPEC’s decision in April to slash oil production by one million barrels a day. Its decision coincides with increased demand as the U.S. gears up for the busy summer traveling season.
Enough is enough. As an original co-sponsor of NOPEC, No Oil Producing and Exporting Cartels Act, I’m working to allow the federal government to take action against OPEC’s anti-competitive business practices. Our bill would allow the Department of Justice and Federal Trade Commission to bring lawsuits against the 11 oil cartel members for antitrust violations including illegal pricing, production and distribution of petroleum products.
Our bill puts OPEC on notice that Americans won't stand for their unfair business practices. We’re not a puppet whose strings are up for grabs.
Beyond going to the mat against OPEC, the United States also must enact a strong national energy policy that increases domestic energy production, expands renewable fuels, boosts alternative energy and promotes conservation.
Unless we respond to OPEC's anti-competitive actions abroad and increase energy production here at home, we’ll continue to face instability at the fuel pump and leave our economic Achilles’ heel exposed. The Bush administration is intent on lowering prices at the pump. But, Congress must also demonstrate political leadership, if we're going to get the job done.
Unfortunately, America remains vulnerable no thanks to a logjam in Congress. Last November, the U.S. Senate lost an opportunity to enact a national energy strategy aimed at reducing America's dependence on foreign sources for energy. A Democrat-led filibuster spoiled hard-fought efforts to secure America’s energy needs in the 21st century. The Senate fell just two votes shy of breaking the impasse.
The comprehensive energy bill contained my job-creating tax incentives for ethanol, biodiesel, biomass and wind energy. It also included measures to boost domestic production of oil, natural gas and nuclear power, improve our electricity transmission grid and create incentives for energy conservation.
Despite the setback, I continue to lead the push in Washington to lessen America’s vulnerability to foreign oil producers.
As chairman of the tax-writing Finance Committee, I led a successful effort in May to attach my renewable energy tax incentives to the bipartisan Jumpstart Our Business Strength (JOBS) Act approved by the full Senate.
This is good news for Iowa’s economy and the nation’s green energy supplies. Cutting taxes is an effective tool to encourage environmentally responsible ways to produce electricity and fuel. And consumers would get breaks for buying alternative vehicles, including electricity-powered cars and hydrogen fuel-cell cars.
Investing in alternative forms of clean-burning energy is good for the environment, good for national security and energy independence, good for job creation and economic development, and good for taxpayers.
As Iowans tighten their belts to afford climbing gas prices, I will continue my efforts to finalize into law a national energy policy that will put America behind the wheel and OPEC in the back seat. From the feedback I heard in 21 communities across Iowa, my constituents are tired of being taken for a ride.