Monday, July 17, 2006

On June 14 via email I asked Senator Durbin of IL this question:

My question is relative to the dependency the United States has on offshore petroleum and natural gas energy resources and the consequences of this dependency. What do you believe needs to be done to avert a possible short term energy crisis and a probable long term energy crisis?

I would like to post your answer on www.usaenergyindependence.com so our visitors may gain insight to where you and other elected officials of both parties stand on this impending crisis. If you choose not to answer we will place you in the column of political leaders who elected not to respond to our question.

Here is his response on July 17.

July 17, 2006

Thank you for contacting me about gasoline prices. I appreciate hearing
from you.

I am deeply troubled about the effect of high gasoline prices on Illinois
residents. As the price of a barrel of oil has skyrocketed beyond $70,
oil companies have charged consumers far more than the companies' costs
for more expensive crude oil and for exploration and development. As a
result, Americans are subsidizing some of the largest annual profits in
the history of U.S. business. This is depleting the savings of consumers
who in many cases are struggling just to pay for food and other
necessities of life.

The increasing oil demand of a rapidly industrializing China and India and
political instability in numerous oil-producing countries are raising the
price of crude. Last year, I called on the President to begin an
investigation into whether oil companies are taking advantage of these
conditions to raise retail prices disproportionately.

We should begin by scrutinizing the mergers among the large oil companies.
These mergers have weakened competition and the accompanying pressure to
lower prices and profits, allowing five enormous oil companies to enjoy
record profits while deflecting the blame for high prices. I have urged
the President to get tough on price gouging, but he has been unwilling to
do so.

A new direction is needed in energy policy. We must cut our oil
consumption and develop promising alternative energy sources. If we
increase the vehicle fuel economy (CAFE) standards required for our
vehicles, we can save up to 100 billion gallons of gasoline by 2015. And
the reduced fuel expenses would keep billions of dollars in American
consumers' wallets each year.

I have long championed the use of ethanol, a domestically produced,
renewable energy source, and I believe it can be a significant part of our
energy policy. Ethanol reduces air pollution, buttresses our national
security by replacing imported crude oil, strengthens the rural economy,
and creates jobs as ethanol production facilities are built and operated.
In a nearly pure form, ethanol can also be an alternative to gasoline for
use in specially-designed E-85 vehicles. In 1987, I was the first member
of Congress to propose that the United States require that its gasoline
supply include 5 billion gallons of ethanol. Since then, the federal
Reformulated Gasoline Program's requirement that ethanol or other fuel
additives be mixed with gasoline in metropolitan areas has led to dramatic
reductions in ground-level ozone levels in Chicago.

Every year, Illinois produces more ethanol than any other state - about
800 million gallons. This generates nearly $6 billion a year in economic
activity for the United States and plays a vital role in the rural economy
of Illinois.

Long-term energy solutions for our nation's homes, businesses, and
vehicles will come from a variety of alternative energy resources.
Scientists and engineers are confronting the obstacles to the development
and commercialization of many promising sources of energy, such as
hydropower, hydrogen, solar, biomass, and geothermal. Congress has
offered major federal incentives for research and development to assist in
jumping these hurdles.

These steps can help America move forward toward a more stable energy
supply and a more secure energy future.

I will keep your thoughts in mind as I continue to work for a more
sensible energy policy. Again, thank you for your message. Please feel
free to keep in touch.


Sincerely,

Richard J. Durbin
United States Senator

RJD/

P.S. If you are ever visiting Washington, please feel free to join Senator
Obama and me at our weekly constituent coffee. When the Senate is in
session, we provide coffee and donuts every Thursday at 8:30 a.m. as we
hear what is on the minds of Illinoisans and respond to your questions.
We would welcome your participation. Please call my D.C. office for more
details.


Keith

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