Emerson calls for more oil drilling to reduce gas prices

In 2005, with Congress under Republican control, members passed an energy bill setting the first national mandates for biofuels and offering big tax incentives for petroleum companies to drill for more oil and natural gas.

In 2007, with Congress under Democratic control, members passed an energy bill requiring cars to be 40 percent more efficient by 2020, increasing the mandate for renewable energy by six times and phasing out the cheap but power-hungry incandescent light bulb.

In both cases, the bills were accompanied by statements that the new laws would moderate the rapid run up in fuel and electricity costs.

Now in 2008, with crude oil and gasoline prices up 46 percent since Jan. 1, the push is on again for an energy bill. On Monday, U.S. Rep. Jo Ann Emerson sought to show that she worries about the price of fuel by addressing a group of supporters, business leaders and civic leaders. She called for rapid exploitation of offshore resources, development of oil shale deposits in Western states, investment in coal-to-gas technology and construction of new nuclear power plants.

"Everywhere I go, people say: ‘What are you doing about gas prices?’" Emerson said. "We are hamstrung right now — both sides are being political."

Emerson said there are two roadblocks delaying debate over where and how to develop new energy sources. The first impediment, she said, are "radical environmentalists" determined to block attempts to produce more domestic oil supplies.

The other obstacle, she said, are the political leaders of both parties in Congress who bring rigid stands to the issue and are unwilling to compromise. Emerson, a Republican from Cape Girardeau, said she wants to be part of a bipartisan group working to pass a bill that expands supplies without being bogged down in controversy.

"The majority of us want to do something but leaders of both sides are making it a political issue," Emerson said.

The recently passed 2008 Farm Bill may also provide relief by wringing speculation out of the market, Emerson said. The bill repealed the so-called Enron Loophole that eliminated regulation of a significant portion of the energy futures market. The rules are being written right now, Emerson said. Speculation may be responsible for anywhere from 10 to 30 percent of the current $143 per barrel price of oil.

Energy costs are squeezing profits everywhere, the business leaders said. Jerry Pullen, owner of Pullen Brothers Trucking Co. in Sikeston, Mo., said that while he can pass on many fuel increases, "everything else is going up right along with it."

Pullen even talked vaguely about whether it is worth it to stay in business. "I am about ready to throw my hands up," he said.

And Keith Gregston, president and general manager of Noranda Aluminum in New Madrid, said electricity accounts for one-third of his operating costs. Fuel is huge concern as well, because his company ships 1,000 truckloads of finished products and receives 400 bargeloads of raw materials each month.

"We spend a lot of money for energy," he said.

The bottom line, Emerson said, is to produce more energy to bring prices down. "The reason is we have not had a national energy plan for this country."

rkeller@semissourian.com

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