From an energy standpoint, Hurricanes Katrina and Rita delivered
the worst one-two punch America has ever experienced. But it did
not have to be so bad.
The central and western Gulf of Mexico is home to 25 percent of the
nation's domestic oil production, 20 percent of its natural gas and
more than 40 percent of its oil-refining capacity. Even before
hurricane season, all three were barely adequate to meet America's
growing demand.
Then, Katrina and Rita came along, both of which shut down Gulf
energy production almost entirely in the days before and after the
hurricanes swept through. Both also caused enough longer-term
damage that it will take months before things return to normal.
Beyond the impact at the gas pump, higher natural-gas and home
heating-oil costs could make this winter one of the most expensive
ever.
But there is no reason America must depend so heavily for energy on
just one part of the country. Texas and Louisiana are not, as many
assume, the only states with rich oil and natural-gas deposits.
Offshore energy can be found in Alaska, the Pacific, the eastern
Gulf of Mexico and the Atlantic. In addition, there is considerable
untapped onshore potential, including the estimated 10 billion
barrels of oil accessible at a small portion of the Arctic National
Wildlife Refuge (ANWR).
Cumulatively, these other areas could contribute more energy than
those ravaged by Katrina and Rita. And of course, refineries could
be built and/or expanded in a number of areas outside the
hurricane-prone Gulf. Indeed, 18 states, including all of New
England, have no refineries at all.
Boosting energy production would mean lower prices overall and less
vulnerability should a disaster -- natural or manmade -- knock out
any one particular region.
But laws must change for this to happen. Federal restrictions on
exploration and drilling put most offshore and many onshore areas
off-limits, and a host of costly regulations make it far more
difficult to build new refineries or expand existing ones.
Fortunately, some in Congress are trying to change this. One
proposed bill would open up ANWR and let any state that wants oil
and/or natural-gas drilling off its coast to opt out of the federal
restrictions. Other measures would help reduce some of the
regulatory red tape and procedural delays that have hampered
refinery expansions.
The unfortunate coincidence of two major natural disasters striking
at the only location where America hasn't put handcuffs on domestic
energy production should serve as a lesson. Only if Congress takes
steps now to allow more domestic energy supplies across the country
are we likely to enjoy more affordable, less volatile energy prices
in the years ahead.
Ben
Lieberman is Senior Policy Analyst
in The Roe Institute at the Heritage Foundation.
Distributed nationally on the Knight-Ridder Tribune wire