At a press conference today, Congressman Patrick McHenry and representatives from local businesses discussed the causes of rising gas prices, their impact on the local economy, and ways to address the problem.

"The cost of gas is pushing family budgets to the brink and threatening the viability of local employers.  Congress can and must take action now to lower prices and rapidly move us toward energy independence," McHenry stated.

Congressman McHenry began by discussing the nature of rising gas prices.  In 2007, global oil production fell by 126,000 barrels a day while oil consumption grew by one million barrels a day. 

The increase in global demand for energy is driven largely by the rising middle class in India and China.  By 2020, China will match the current U.S. oil consumption rate of 20 million barrels per day and by 2030, it will double current U.S. oil consumption.  This trend forecasts high gas prices for Americans unless action is taken.

Congressman McHenry was joined by Paul Thompson, Founder and CEO of Transportation Insight, a transportation and freight management consulting company based in Hickory, Jeff Hale of The Hickory Printing Group, and Kerry Lattimore from Von Drehle Corporation.

Mr. Hale and Mr. Lattimore spoke about the increased cost of doing business as a result of higher gas prices.  Mr. Thompson discussed strategies they are employing to help local businesses become more efficient and cost-effective with their transportation needs

Congressman McHenry then offered a two-front strategy to reduce gas prices and make America energy independent.

“First, we must stop pretending that the United States lacks the resources to become energy independent.  The American people have a right to see America’s abundant energy resources used to help lower gas prices.  At over $4 a gallon, the time to act is now,” Congressman McHenry declared.

There are an estimated 18 billion barrels of recoverable oil in Alaska, the equivalent of 30 years of Middle East imports.  Along the Outer Continental Shelf, there are an estimated 86 billion barrels of recoverable oil.  In all, the United States possesses enough crude oil to power 65 million cars for 60 years.

A July 3, 2008 public opinion survey conducted by CNN found that 73% of Americans now support offshore drilling for oil and natural gas.

In addition to high gas prices, Congress’ refusal to allow the environmentally-safe exploration and production of energy resources is costing this country lost jobs and lost tax revenue.

McHenry also discussed the use of oil shale and increased refining capacity to address the problems of supply in the energy market.  The Rocky Mountain West is home to the world’s largest oil shale deposits, an estimated 800 billion barrels, which is three times larger than the proven oil reserves of Saudi Arabia. 

However, last December, Congressional Democrats included a provision in an energy bill that prevented the Department of Interior from issuing leases for the production of oil shale.

“The American people are going to be furious when they learn that American energy independence has been sitting under our noses this whole time,” Congressman McHenry stated.

McHenry’s second strategy for American energy independence is the development of alternative energy sources. 

Congressman McHenry is the author of the Independence Prize Act, which would award up to $1 billion to any U.S.-based private enterprise that develops workable products or technologies that help break our dependence on foreign oil, such as alternative fuels and efficiency improvements to engines.  The idea is heralded as a 21st Century Manhattan Project.

Lastly, technological advances have made the use of nuclear power safe, environmentally-friendly, and cost-effective.  Congressman McHenry has consistently supported streamlining the regulatory and permitting process for nuclear power.

 
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