Kirk Brackett
150 Cross Creek Way
Hampton, GA 30228-2085
Dear Friend,
Thank you for contacting me. I appreciate your concerns regarding the rising cost of fuel and proposals to increase domestic oil drilling.

I fully share your concern over the rapidly escalating fuel prices. Our current domestic energy supply cannot meet the needs of consumers. While the domestic supply has not reached the critically short levels we experienced in the 1970's in the United States, the current domestic energy output must increase to meet the current and future demands of consumers.

I have become a leader in the U.S. House of Representatives to call for increased domestic oil production. In fact, I have authored a petition in the U.S. House of Representatives that states, "I will vote to increase U.S. oil production to lower gas prices for Americans," and have worked to encourage my colleagues in Congress to support increased production. There are currently more than 190 Members of Congress who have signed the Westmoreland Petition and support reducing our reliance on foreign oil.

As I am sure you are aware, the process of refining gasoline from crude oil is a complicated procedure. A barrel of crude oil contains 42 gallons, and its contents create 19.6 gallons of gasoline, 10 gallons of diesel and heating fuels, 4 gallons of jet fuel, 1.7 gallons of heavy fuel oil, 1.7 gallons of liquefied petroleum gas (LPG), and the remaining 5 gallons is used for other petroleum based products. Obviously, creating all of these products from a single barrel is an arduous task, and an expensive one.

Currently, there is a debate over the cost of fuel contrasted with the profits of oil companies. I think it is important to fully understand exactly where your hard-earned dollars go when you fill your tank. The cost to produce and deliver gasoline to consumers includes the cost of crude oil to refiners, refinery processing costs, marketing and distribution costs, and finally the retail station costs and taxes. Prices paid by consumers at the pump reflect these costs, as well as the profits (and sometimes losses) of refiners, marketers, distributors, and retail station owners. These components are broken down in this manner: crude oil accounts for 47% of the cost for a gallon of gas, federal and state taxes account for 23% of the cost, refining costs and profits comprise 18%, and distribution and marketing costs make up the remaining 12%.

These facts and figures help explain the process for creating gasoline, but they do not explain why the cost of gasoline has escalated so rapidly. One of the largest factors of the price increase is of the principle of supply and demand. Since 2000, the daily consumption of gasoline has increased by roughly 700,000 barrels per day, which brings use to just under 9.2 million barrels per day. While this demand has continued to increase, domestic refining capacity has declined. This has occurred both in the number of refineries (from 324 in 1981 to 153 in 2002) and in total capacity (from 18.62 million barrels per day in 1981 to 16.78 in 2002). Due to the lack of capacity, the refining industry has operated with lower inventories of both crude oil and gasoline in order to cut costs. The unintended consequence of this is reduced ability to meet unanticipated demand, which leads to greater price pressure.

Regional air quality standards have fragmented the gasoline markets, leading to numerous formulations to meet these varying standards. As of now, there are 18 different fuel types and roughly 45 different fuel blends (known as boutique fuels) nationwide, once the various octane levels are factored in. The growing number of boutique fuels is due to compliance with the 1990 Clean Air Act Amendments. I am completely opposed to the convoluted nature of this process. Further, oil refineries have had increased costs in the past year to comply with new federal regulations designed to limit sulfur content and to switch from the fuel additive MTBE to ethanol.

The recent problems at the pump show why this nation needs to reduce its dependency on foreign oil by thinking about the future, not just today. During my time in Congress, I have worked to do just that. I fully support further development of alternative fuels, such as ethanol and biodiesel. Another option that is being discussed is exploration of the Arctic National Wildlife Refuge (ANWR). Studies by the U.S. Geological Survey estimate that very limited drilling in the ANWR in the state of Alaska could yield up to 16 billion barrels of oil, an amount roughly equal to 30 years of oil imports from Saudi Arabia. I expect that the debate of this issue is far from over, and I will continue to voice my support for further exploration in the ANWR area.

I also believe we should explore for oil in the Outer Continental Shelf (OCS). There is currently a Congressional and Executive moratorium on drilling in the OCS. President George W. Bush has stated that we should remove these moratoriums, and I support this action. The unfortunate fact is that we do not know how much oil is in the OCS because we are not even allowed to explore this area. However, the U.S. Minerals Management Service (MMS) estimates there is 86 billion barrels of oil in deep water OCS. These areas must be explored if America is to become energy independent, as the United States is the only developed nation in the world that forbids safe energy production on its OCS.

Another alternative the U.S. Congress should explore is the use of oil shale. Many energy experts refer to the United States as the Saudi Arabia of oil shale, since we have such a large supply of this natural resource. According to the Department of Energy, America is endowed with more than 2 trillion barrels of oil. To put this figure in perspective, the world has used 1 trillion barrels of oil since the first oil well was successfully drilled in Pennsylvania in 1859.

The last U.S. oil refinery was built in 1976 in Garyville, Louisiana. It is completely unacceptable that this nation has been without the construction of a new refinery for over thirty years. By 2010, the U.S. refining industry will have invested upwards of $20 billion to comply with new clean fuel regulations. This is another clear example of the federal government placing excessive burden on private business. I fully support amending the regulatory restrictions placed on those who are providing the fuel that this nation depends on.

As gas prices continue to escalate, it is very important that new refinery construction gets under way as soon as possible. By increasing production, easing the regulations on fuel types, and developing renewable fuel sources, it will be easier to lower the cost of gasoline. However, we all must keep in mind that this issue is truly based on the principles of supply and demand. It is up to each one of us to make responsible decisions when it comes to energy consumption. The less gasoline this nation consumes, the more gasoline our nation will have, and that will mean lower prices at the filling station.

I appreciate you taking the time to let me know your opinions. Hearing the views of all Georgians gives me the opportunity to better understand how important issues could impact the people of Georgia and the future interests of the nation. In that regard your views are most helpful.

For more information about legislation before Congress, I invite you to visit my website at http://www.house.gov/westmoreland, and to receive my monthly newsletter, you can sign up on my website at http://westmoreland.house.gov/Forms/EmailSignup/.

Sincerely,
Lynn A Westmoreland
Member of Congress
P.S. Please do not reply to this email, this is an unattended mailbox. Due to the large number of constituent emails received each day, all electronic constituent comments must be entered through my official website. Replies to this email address will not receive a response.

Saxby Chambliss
Tue, Jul 29, 2008 at 9:42 AM
To: kirk.brackett@gmail.com

Dear Mr. Brackett :

Thank you f or contacting me regarding our n ation's energy policy . I appreciate hearing from you.

I share your concerns about the negative impacts that the rising energy prices are having on Georgia 's families. This is the number one issue facing Georgians today, and it is having a significant effect on family budgets and small businesses. This crisis cannot be solved by any single solution. Instead, Congress must develop a comprehensive energy policy to secure our energy future.

The key areas of a responsible energy policy that will reduce gas prices, lessen our dependence on foreign oil, and strengthen our economy include: increasing our domestic energy production, improving energy efficiency through technology, increasing conservation, diversifying our nation's energy supply through the use of renewable fuel sources, and ensuring transparency in our futures markets.

I have and will continue to support additional oil exploration and increased refining capacity here in the United States . It is important that we utilize the resources here in this country whether that includes oil in Alaska , the Outer Continental Shelf, or any of our oil sands or shales.

As our demand for electricity, fuels, and other forms of energy increases, we must continue to develop more energy efficient technologies. It is these science and technology based innovations that will enable us to meet our energy needs in environmentally responsible ways.

Conservation is also a very important part of any solution. The United States continues to be the largest consumer of energy in the world. If we are to meet our energy demands in a sustainable way, reduced consumption is imperative.

Investing in renewable energy technologi es is an essential part of our n ation's energy future, because this investment will lead to cleaner, more affordable, domestically-produced energy.

Finally, I am concerned about any role that speculation is having in unduly inflating the price of oil. It is important that we develop solutions that will make commodity markets more transparent and help facilitate regulators in their oversight of futures markets.

Recently, I formed a bipartisan energy working group with Republican and Democratic Senators to craft legislation to address our current energy crisis. We are coming together because we all believe this issue is too important to fall victim to political games. I will continue to work to address this issue. If we put as much effort into finding a solution to the energy crisis as we do in blaming one political party or another, we could have done something by now.

I look forward to continuing to work with my colleagues in a bipartisan manner to address this critical issue. As the Senate moves forward, I will review energy legislation in accordance with these principles, and I will keep your comments in mind.

If you would like to receive timely email alerts regarding the latest congressional actions and my weekly e-newsletter, please sign up via my web site at: www.chambliss.senate.gov . Please let me know whenever I may be of assistance.