America Must Take the First Step to Move Away from Oil

By Congressman Rick Renzi (AZ-1) As hurricanes Katrina and Rita raged through the southeastern United States last summer, much of America's energy infrastructure based in the Gulf of Mexico was damaged or destroyed causing gas prices to soar. America could see the devastation with our own eyes as our thoughts and prayers went out to the families and loved ones of those displaced or killed by the storms. Now months later, our nation is still faced with rising gas prices, but this time there is no clear cause and effect. This is why I am calling for a new round of Congressional hearings to investigate oil company profits in response to rising oil prices as well as a Federal Trade Commission investigation on the recent gasoline price hikes and the impact of high gasoline prices on the nation's economy. It is time for "Big Oil" to reinvest their profits into alternative and renewable fuel research and production and to specifically convert existing service stations with at least one pump dedicated to alternative fuels instead of providing its executives with retirement packages worth hundreds of millions of dollars and posting an $8.4 billion quarterly profit. We must shift the energy policy debate in America with an increased focus on alternative and renewable fuels and Congress must pass meaningful alternative fuels and incentive programs to help move the U.S. away from dependence on foreign oil. Oil supplies our nation with more than 99% of the fuel we use in our trucks and cars and this leaves America's economy vulnerable to price spikes. If we can produce more ethanol and bio-diesel to help fuel our vehicles, we will create jobs, boost local economies and produce cleaner burning fuels. This will keep dollars here at home where they can have a positive impact on our economy. The nine major oil companies recorded an average 36.4 % increase in profits in 2005 as compared to 2004. Exxon Mobil alone made $36.1 billion last year, an increase of more than 42 percent. If oil companies were to invest their high profits into alternative fuel research it will help America move toward new forms of energy. We will not end our reliance on fossil fuels overnight, but we must invest in the research and development of alternative fuels that will someday help us become energy independent. If oil companies cannot do it on their own, Congress should consider legislation that pushes oil companies to reinvest their profits into alternative and renewable fuel research and production and to specifically convert existing service stations with at least one pump dedicated to alternative fuels. We can look to Brazil for a blueprint on the best way to move towards alternative and renewable energy. In the 1970s, Brazil, along with the rest of the world, was squeezed by the OPEC oil embargo and the high price of oil. At that time Brazil, like America, was dependent on foreign nations for about forty percent of its energy. But unlike America, Brazil made several bold decisions that have allowed it to move towards energy independence. While America's reliance on foreign oil has grown steadily, Brazil's has decreased its reliance because it has embraced alternative and renewable fuels. Brazil took a bold step and decided to use its land to plant millions of acres of sugarcane with the goal of producing enough sugarcane based ethanol to help run Brazil's fleet of automobiles. Fast forward to 2006 and Brazil is on the cutting edge of alternative and renewable fuel research and development. Brazil's streets are now full of flex fuel vehicles that can run on ethanol, gasoline and electricity or sometimes a combination of all three. These flex fuel vehicles have been embraced by the population because they allow consumers to choose which type of fuel they can use, depending on the prices and availability. This forward thinking energy policy has allowed Brazil to break the cycle of dependency on foreign oil and allowed it to become more energy independent. America should follow Brazil's example and plant sugarcane in the southeast where it can thrive. It will not only provide a boost to the local economies in hurricane devastated areas, it will provide homegrown American energy for the nation. But the auto industry must also step up to the plate and provide American consumers with vehicles that can run on these alternative and renewable fuel vehicles. For the past year, I have driven a hybrid vehicle that runs on gas and electricity and the time is right for the auto industry to develop more flex fuel vehicles like the ones in Brazil that can run on alternative fuels like ethanol and electricity. There is no easy fix for high gas prices, but we can take a significant step forward and move towards a future filled with alternative and renewable fuel vehicles that can fill up anywhere in the country. With at least one alternative fuel pump available for consumers at gas pumps nationwide, Americans can choose to drive these cutting edge machines. I am co-sponsoring legislation (HR 4357) in the House to help America take that first step with specific goals that will require ten percent blend of renewable fuels in American gasoline by 2010. If we take positive and proactive steps toward alternative and renewable fuels today, we can ensure a future filled with affordable, clean burning energy tomorrow.