Russian Energy Supply Conflict: Domestic Resources Key To U.S. Energy Security

Russian Energy Supply Conflict: Further Evidence Domestic Resources Key To U.S. Energy Security
IER urges Congress to focus on America’s oil and natural gas resources in both energy and economic policies
Institute for Energy Research, Wednesday, January 7, 2009

WASHINGTON, D.C. —As the Senate Energy and Natural Resources Committee prepares to hold its first hearing on energy security tomorrow, Institute for Energy Research (IER) Senior Vice President for Policy Daniel Kish is reminding lawmakers that the answer to both our economic recovery and energy future lies in our nation’s vast domestic natural resources.

Russia’s sudden decision to shut off natural gas supply to neighboring Ukraine last week further reinforces the need to reduce U.S. reliance on unstable foreign regimes for oil and natural gas imports. As such, any effort by the 111th Congress to increase energy production at home would reduce America’s reliance on imported oil while simultaneously creating jobs, generating tax revenue, and providing a major boost to the national economy.

“With Congress beginning to map out an agenda to address our nation’s energy security, our lawmakers should consider the havoc wreaked last week by Russia’s abrupt decision to shut off the supply of natural gas to the Ukraine,” says Kish. “This rash action imperiled almost 20 percent of central Europe’s gas supplies — which must first pass through the Ukraine.

“As this overseas energy supply conflict illustrates, any plan to improve America’s energy security must involve reducing U.S. reliance on imports from unstable foreign regimes like Russia. While Europe may be forced to rely on Russia and other imported energy, the US has no excuse. North America is chock full of natural gas, conventional and unconventional oil and coal that can be cleanly converted to energy. With less than 4% of our governments’ lands leased for energy, Congress should be asking if we can afford to say ‘Nyet’ to domestic energy production. And that’s not the only reason Capitol Hill should act to expand access to our energy supplies here at home.

“Amid a faltering economy and rising unemployment rates, ‘job security’ has joined ‘energy security’ as one of many Americans’ top priorities.Fortunately, our domestic natural resources hold answers to the current recession too. Recent research shows that developing America’s oil and gas resources will create jobs, stimulate the economy, and generate massive revenues for taxpayers.

“Policies that encourage greater exploration and development of our nation’s vast energy resources will ensure that Americans are able to take control of their energy and financial future.”