Here is a column I wrote back in April 2006 for my boss. It was published in numerous trade magazines in May 2006 with his byline.
Act Now or Pay Later
by W. Henson Moore
History is being decided in Congress this month. It will be an interesting opportunity to test the old adage that those who do not learn from history, are destined to repeat it. Congress is debating our current energy crisis—believe it or not, I’m not talking about gasoline prices that seem to be dominating the media. I’m talking about the price of natural gas which is much higher than the price of gasoline. Recent natural gas prices were equivalent to paying $7.50 per gallon for gasoline. It’s seriously hurting the forest products industry.
Natural gas has nothing to do with gasoline; it is a clean, efficient, and formerly inexpensive fuel. Millions use it to heat their homes, schools, churches, and hospitals, and we all rely on it to keep America’s factories and power plants running. But the price of natural gas has climbed steeply in the past six years, far outpacing inflation, and the price is now at least four times its historic average. These unnaturally high prices are hurting manufacturing which relies so heavily on natural gas. Since 2000, the forest products industry has closed 282 mills and permanently lost 189,000 jobs—and high energy prices are often cited as a cause.
So what about Congress? Well, the problem is uniquely one that Congress can completely solve on its own. The reason natural gas prices are so high is that for more than twenty years Congress has been encouraging consumption of natural gas, while at the same time, restricting access to supply. Doesn’t make sense, does it? Well, Congress may be about to fix it by removing some of those restrictions. Senators Domenici (R-NM) and Bingaman (D-NM) have introduced legislation in the U.S. Senate to expand our exploration for natural gas in a small section of the Gulf of Mexico believed to hold enough natural gas to heat 5 million homes for 15 years. In the U.S. House, Representatives Jindal (R-LA) and Peterson (R-PA) have offered their own bills that propose different approaches to increase our natural gas supply. Voting should occur before the end of May, and America badly needs the bills to pass and for the President to sign them.
I mentioned learning from history—well that part does tie back to gasoline prices. Decades ago this country made a general policy decision that even though there was plenty of oil in Alaska and under the ocean off our shores we were not going to go after it in great quantities. We decided to import most of our oil from allies in the Middle East. Well, as you know, some of those allies are now our outright enemies, and none of them feel particularly good about us. And what has happened to us? As we come to require more and more oil, we are increasingly at the mercy of those former allies who can do with the price of oil what they please.
So once again, we find ourselves at a crossroads. We have enough natural gas under our feet and waters to keep America going for a century or more. Will Congress lift the restrictions on supply and allow American companies to go get this American natural gas to heat American homes and keep American factories running, preserving American jobs? Or will they once again say, “no,” and make us look overseas for natural gas? Many countries in the Middle East and Russia have booming natural gas industries, and they would all be more than happy to see us hand our future over to them, just as we did so many years ago with oil.
Congress needs to act now on natural gas or we will all be paying the price later. I encourage you to call your Senators and your Representative in Congress and tell them to put American natural gas to work for America. America’s security and strength depend on it.
647 words
W. Henson Moore is a former Member of Congress from Louisiana and the former Deputy Secretary for Energy. He currently is the President & CEO of the American Forest & Paper Association. He wants you to know you can call the U.S. House of Representatives at (202) 225-3121 and the U.S. Senate at (202) 224-3121.
by W. Henson Moore
History is being decided in Congress this month. It will be an interesting opportunity to test the old adage that those who do not learn from history, are destined to repeat it. Congress is debating our current energy crisis—believe it or not, I’m not talking about gasoline prices that seem to be dominating the media. I’m talking about the price of natural gas which is much higher than the price of gasoline. Recent natural gas prices were equivalent to paying $7.50 per gallon for gasoline. It’s seriously hurting the forest products industry.
Natural gas has nothing to do with gasoline; it is a clean, efficient, and formerly inexpensive fuel. Millions use it to heat their homes, schools, churches, and hospitals, and we all rely on it to keep America’s factories and power plants running. But the price of natural gas has climbed steeply in the past six years, far outpacing inflation, and the price is now at least four times its historic average. These unnaturally high prices are hurting manufacturing which relies so heavily on natural gas. Since 2000, the forest products industry has closed 282 mills and permanently lost 189,000 jobs—and high energy prices are often cited as a cause.
So what about Congress? Well, the problem is uniquely one that Congress can completely solve on its own. The reason natural gas prices are so high is that for more than twenty years Congress has been encouraging consumption of natural gas, while at the same time, restricting access to supply. Doesn’t make sense, does it? Well, Congress may be about to fix it by removing some of those restrictions. Senators Domenici (R-NM) and Bingaman (D-NM) have introduced legislation in the U.S. Senate to expand our exploration for natural gas in a small section of the Gulf of Mexico believed to hold enough natural gas to heat 5 million homes for 15 years. In the U.S. House, Representatives Jindal (R-LA) and Peterson (R-PA) have offered their own bills that propose different approaches to increase our natural gas supply. Voting should occur before the end of May, and America badly needs the bills to pass and for the President to sign them.
I mentioned learning from history—well that part does tie back to gasoline prices. Decades ago this country made a general policy decision that even though there was plenty of oil in Alaska and under the ocean off our shores we were not going to go after it in great quantities. We decided to import most of our oil from allies in the Middle East. Well, as you know, some of those allies are now our outright enemies, and none of them feel particularly good about us. And what has happened to us? As we come to require more and more oil, we are increasingly at the mercy of those former allies who can do with the price of oil what they please.
So once again, we find ourselves at a crossroads. We have enough natural gas under our feet and waters to keep America going for a century or more. Will Congress lift the restrictions on supply and allow American companies to go get this American natural gas to heat American homes and keep American factories running, preserving American jobs? Or will they once again say, “no,” and make us look overseas for natural gas? Many countries in the Middle East and Russia have booming natural gas industries, and they would all be more than happy to see us hand our future over to them, just as we did so many years ago with oil.
Congress needs to act now on natural gas or we will all be paying the price later. I encourage you to call your Senators and your Representative in Congress and tell them to put American natural gas to work for America. America’s security and strength depend on it.
647 words
W. Henson Moore is a former Member of Congress from Louisiana and the former Deputy Secretary for Energy. He currently is the President & CEO of the American Forest & Paper Association. He wants you to know you can call the U.S. House of Representatives at (202) 225-3121 and the U.S. Senate at (202) 224-3121.
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