Following a year of record-high gas prices, the rising cost of oil continues to strain the budgets of Mississippi families and businesses.  Growing tensions with Iran have heightened fears of a disruption in global oil supplies – sending prices skyward and underscoring the need for better energy security here at home.

At the center of the commotion is the dispute over Iran’s nuclear program, which has prompted economic sanctions from the United States and European Union.  In response, Iran is using its oil as a political weapon – threatening to withhold supplies and block the strategic Strait of Hormuz at the mouth of the Persian Gulf, through which about 20 percent of the world’s oil passes. 

The situation’s harmful impact on gas prices is reminiscent of the market volatility that followed the Arab Spring protests this time last year.  It also highlights why we cannot sustain an oil market controlled by politically unstable countries.  Instead of reacting to prices, we should be unleashing America’s energy potential.

A Record-Breaking Trend

Many analysts say the pain at the pump is not likely to subside anytime soon.  Some are speculating gas prices could top a record-breaking $5 or more per gallon by the summer.  Last week, the national average hit $3.61 per gallon – more than 40 cents higher than it was a year ago and the highest it has ever been during the month of February.  When President Obama took office, a gallon of gas cost only $1.85.

These high fuel prices can have far-reaching economic effects.  According to the Oil Price Information Service, Americans spent more on gasoline in 2011 than in any other year in the past three decades.  For the average household, about 8.4 percent of the family budget – or $4,155 – went toward filling up at the pump.  This means consumers had less money to spend and invest in their local communities – ultimately hurting economic growth.

Missed Opportunities

The Obama Administration’s flawed energy policies have aggravated the problem.  Rather than utilize America’s abundant resources, the President has slowed the permitting process, blocked leases, and supported higher energy taxes and more regulations at the expense of valuable opportunities for greater domestic energy production. 

The President’s de facto moratorium on drilling in the Gulf of Mexico made it clear that strengthening the country’s energy security is not a White House priority.  The same can be said about his rejection last month of the Keystone XL pipeline.  The 830,000 barrels per day it would transport offers a 7 percent increase to current imports.  Besides lost jobs and investment, not expanding access and delaying production keep Americans vulnerable to spiking gas prices and the dangerous whims of energy providers from volatile regions of the world.

A Legislative Proposal

We are blessed to live in a country with plentiful resources, and we are far from maximizing America’s energy capacity.  An amendment I recently authored would help do this by establishing a production goal for the Obama Administration’s five-year offshore oil and gas leasing plan.  By setting benchmarks for the output of oil and natural gas, we can make measurable progress toward energy independence. 

Today’s high gas prices confirm the urgency of pursuing better energy strategies as demand for oil continues to increase across the globe.  Taking steps now is essential to meeting future needs and providing us a defense against market panics.

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