By Scott Starin 

Second Congressional District Republican candidate

America is at a tipping point, Oil, energy, and food prices have skyrocketed to unprecedented levels, and there seems to be no relief in sight. Americans are hurting. Gas and oil prices have increased over 70% over the last two years and food prices have experienced double-digit inflation over the same time period. Our ability to explore and utilize domestic energy solutions is unnecessarily restricted, hampering our country's prosperity and creating a situation in which we fund countries that are ideologically and environmentally opposed to the values of America.

Congress has restricted our domestic energy production, refinery capacity, and energy sources while mandating corn-based ethanol. These strategies were undertaken with the good intensions of protecting the environment but have created many unintended and unnecessary consequences. If we do not act immediately to change our present course, many Americans will be facing $1,000 heating bills this winter. Many in Congress - as well as the Democrats running for the Colorado's 2nd Congressional District - mistakenly think the way to address these energy problems is to further restrict domestic energy production, increase taxes paid by oil companies or sue the Organization of Petroleum Exporting Countries (OPEC). These actions will only exacerbate the problem and increase the price of gas at the pump. There are, however, reasonable and carefully planned measures we can take to halt the rising cost of fuel and reverse the trend. By using new technologies available today, we can retool our energy policy in a way that is compatible with our environmental concerns and will actually benefit the global environment.

The high cost of gasoline and energy has created many real-world hardships for the average American: Americans are paying more at the pump than ever before, with no end in sight; corn-based ethanol mandates have increased food prices and caused food shortages; the high cost of fuel translates into increased prices of all goods that are trucked to market; hundreds of truckers have gone our of business this year because of the high cost of fuel; the automobile industry is suffering and factories are being closed, with thousands losing their jobs; rising fuel prices are creating economic uncertainty, which causes less spending in general and creates a self-fulfilling prophecy of a downward-spiraling economy; and Ultimately, between rising fuel and food prices Americans have significantly less disposable income, which threatens our overall standard of living.

Our current energy policy restricts domestic energy production of clean coal, oil shale excavation and crude oil reserves. Concerns over wildlife habitat have prevented us from accessing reserves that produce over one million barrels of oil a day. Additionally, while everyone looks forward to solar, wind and alternative energy sources, these energy options have storage capacity limitations and can cost 10 to 20 times the cost of nuclear, natural gas and clean coal technologies per unit of energy. Ceillulosic ethanol, while promising, is not yet feasible for mass production and is highly corrosive, creating barriers for storage, transportation and consumption.

Many in Washington believe oil companies are to blame for high energy prices. To punish the oil companies, some have proposed a "Windfall Profits Tax" or to sue OPEC for price gouging. These actions will only only result in additional costs being passed down to the consumer, or cause some oil companies or exporting countries to take their business elsewhere. Oil companies are making record profits because they must invest record capital to acquire the product. Business Week Magazine reports that Exxon paid 49% of its first quarter gross income on income taxes. The oil industry is one of the most efficient and cost effective industries. According to the Energy Information Administration, a government agency, more than 70% of the cost of gas at the pump is due to the direct cost of crude oil and taxes. The oil companies refine, distribute and market the product with extraordinarily low overhead rates and efficiency.

The price of oil is not determined by oil companies or even OPEC. The price of a barrel of crude oil is determined by speculation on the commodities market. The supply alone is not pressuring the price of oil. Commodities traders speculating on the supply and demand is driving up the cost. If we were to announce today that we will significantly expand our domestic oil production, it would have an immediate and significant effect on the price of a barrel of oil. The Center for Research on Globalization estimates that as much as 60% of today's oil price is speculation. Those who state that drilling in the Arctic National Wildlife Refuge (ANWR) will only reduce the price by 1.8 cents per gallon in the year 2030 do not understand the underlying process and market forces that determine the price at the pump.

I have been involved in developing energy conversion systems for over 25 years. I have worked with the oil exploration industry designing motors and control systems used in directional drilling equipment to increase access to oil reserves from a single drilling source. These enabling technologies significantly reduce the environmental impact and footprint on the surrounding landscape. Most Americans are not aware that Canada supplies more oil to the United States than does any other country. Canada is drilling in the areas similar to ANWR. Indeed, we import 33% of our oil from Canada and Mexico and these countries are drilling in the types of areas that we say we cannot. With the technologies available today, one oil well can reach the reserves that used to take nearly 30 individual wells to access. Additionally, with down-hole sonar technology we can detect any leaks or seepage of the oil or natural gas. We can drill in ANWR and we can do it in an environmentally sensitive manner. Some have adopted a "Not in My Back Yard" mentality to the energy industry, but expanded oil and natural gas exploration would bring many high paying high technology jobs Colorado, along with our ability to assure the energy sources are being developed in a manner compatible with our environmental concerns. I believe we must reassess our role in providing domestic energy solutions.

We must take a holistic, global view of the realities and impact of oil production. Many of the countries exporting oil to the United States are not using the more environmentally sound technologies we use and they are negatively impacting their environments. However, there are eco-friendly nations, such as Norway, the United Kingdom and Finland, who are drilling their natural resources with great environmental success. We should not be fearful to follow their example.

I will be releasing detailed position papers on alternative energy and the environment. These topics are too complex and detailed to expand on in this summary. I am committed to complete and thoughtful solutions toward balancing our current energy demands and environmental concerns. In addition to carefully expanding our oil and natural gas reserves, we must increase focus on alternative, renewable and nuclear technologies to assure our economy, environment and future energy needs are balanced, and not held hostage by oil prices or a reactive environmental policy. Doing so will help us achieve a prosperous and healthy future for our nation and our planet, and provide price relief at the pump. The sooner we make these commitments, the sooner we will see lower gas prices.