Senator Cochran addresses Senate on high gas prices
June 13, 2008
Senator Cochran spoke on the Senate floor yesterday regarding rising gas prices.
The full text of Senator Cochran’s remarks are below:
“Madam President, The high cost of gasoline has had a crippling effect of the economy of my state of Mississippi. The people in my state, where earnings are below the national average, are simply not able to keep up with the rising cost of living.
High gasoline prices not only increase the cost of going to work, they also result in increased costs of food and other consumables. As a constituent who called my office yesterday said, “I can stand the high price of gas, but my utility bills have stretched me to the breaking point.” The Daily Journal, a newspaper in Northeast Mississippi quoted another constituent, Jennifer Skinner of Tupelo as saying, “working class people can barely make it. I’m a single mom with three kids.”
Madam President we’ve been very fortunate that our farmers have been getting record prices for corn, soybeans and wheat, and other commodities as well over the last two years. And while the value of these commodities are high, energy costs have caused the inputs for farm operations to rise significantly. This has affected cost of fertilizer, pesticides, electricity, and the diesel fuel that farmers used. As a result farmers who have worked so hard to produce food at a lower coast to the consumer than any other country are not able to sustain their farming operations. These high prices and high costs have created a cycle of higher food costs that have been added to the burden of my constituents.
Crude oil prices are, of course, linked to supply and demand. While there are many other compounding factors, such as a weakened dollar, we must remember at the root of the problem is the increased worldwide demand for energy. According to the Federal Highway Administration, Americans drove 12 billion fewer miles in the first-quarter of this year compared with the same period last year. Americans are driving less due to increased costs. However, the decreased demand for energy in America has had little effect on the increased worldwide demand.
We know that demands for oil will continue to escalate as more developing countries use crude oil. According to the International Energy Agency, between now and 2030 China and India will account for 70% of all new demand for oil. The Congress and the Administration must consider now how much future demands will increase in the coming years. While there are steps I believe the Congress can take to help cope with higher prices in the short term, our future demands for energy independence will require us to move to new sources of fuel.
Americans are looking to their leaders for answers. They want to know what the Congress can do to help them through these hard times. As we consider energy policies that will ease the burdens of higher costs for our constituents and their struggling businesses, we should not impose policies that create higher tax burdens on costs for energy companies. Higher taxes will not lead to lower prices, but will only serve to increase the expenses of doing business that will be passed on to the consumers. Our economy relies heavily on transportation and a policy that doesn’t provide real long-term reforms to the way our country acquires and uses energy will not provide Americans with a better deal or a stronger economy.
While we search for better energy sources, we must remember that until developing technologies are able to create affordable and efficient fuels, the short-term supply and demand problems will still exist. Some senators have called for increased exploration in drilling. Though I’m always mindful of protecting our environment, I think we need to be reminded that advancements in drilling technology over the last several years mean we are much better able to protect our valuable natural resources as we explore for new energy.
In addition to acquiring more crude oil within the United States and off its shore, we should do all we can to promote the exploration and use of oil shale. We’ve heard the distinguished Senator from New Mexico talk about his views, which include the use of oil shale. It is already used extensively in many other countries, and according to the Congressional Research Service, they is potentially the equivalent of 1.8 trillion barrels of oil to be found in America alone. It is my hope that the Congress, the Administration, and private industry will come together, with those who are concerned about environmental consequences and impacts, deal with those challenges in a thoughtful and effective way, and proceed with exploration and extraction of oil shale. The Energy Policy Act of 2005 identified oil shale as a very important resource that should be developed. While progress in the development of this important resource has occurred, we should do more to make oil shale resources as a motor fuel into a reality.
Peter J. Robinson, Vice Chairman of Chevron Corporation, recently testified before the House Select Committee on Energy Independence and Global Warming. He said,
“the search for the next source of oil, whether it be oil or next generation fuels from renewable sources, takes enormous capital, specialized expertise and the organizational capability that characterizes Chevron. Transforming raw materials into usable energy products and delivering them to markets on six continents takes substantial financial strength, advanced technology, and human energy.”
I think Mr. Robinson is correct when he says we face a huge undertaking in determining the next source of fuel, but I also believe that the Congress should not be in the business of trying to pick a winner for the next form of energy. We should be doing what we can to promote all forms of alternative energies that show promise through appropriated research dollars, grants, and public-private partnerships.
In Mississippi we are prepared to play a major role in the development of new energy. Our farmers have the knowledge and expertise to create renewable feed stocks such as corn, soybeans, timber, grasses, animal fats, and even wastewater. The University of Southern Mississippi, for example, is engaged in research to create more efficient and lower-cost fuel cell membranes. The University of Mississippi is using termite research in an innovative approach to cellulosic energy research. In addition to searching alternative fuels, that include wastewater, timber and other feed stocks, Mississippi State University students were winners of a 2008 Challenge X competition. This competition is a partnership between the Department of Energy and General Motors. It challenges university students to create vehicles that are more fuel efficient and produce lower emissions.
I’m really proud of my state’s commitment and contribution to creating a better energy future, and I hope we can continue to work hard to make the ideas and efforts of these students and university researchers, and our entire population in our state who are involved in this challenge, a reality.”
-U.S. Senator Thad Cochran
Tags: High Gas Prices
