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Who Wants a Refinery in Their Backyard?
6/28/2008

Joe Pitts is the leading sponsor of HR 2279, a bill that promotes the construction of oil refineries on at least three decommissioned military bases. The bill has not moved from committee because the majority and Republican and Democratic Congress men and women question the validity of Pitts’ assumption that oil would be available for refining.

According to Pitts, the bill is intended to expedite the expansion the country’s oil refining capacity. However, it is indisputable that the supply of imported oil is shrinking and the ability to develop new producing oil fields along America’s coastlines is in doubt.

Big oil has owned the right to drill along the 20% of the Gulf coastline for thirty years and has not done so because of the excessive cost of production and the lack of evidence that enough reserves are present to make drilling worthwhile.

Pitts’ assumption that gas prices can be suppressed by increasing America’s output of oil is wrong. Currently, the U.S. consumes 20 million barrels of oil a day of which we produce 5 million barrels. Best estimates of expanding coastal drilling indicate that we could produce only an addition 1 million barrels a day.

Currently, the nation’s refineries are operating at 90 to 95 percent of capacity which is very efficient. Industry analysts contend that it is much more cost-effective to expand additional refining facilities than to build new ones, especially when it is the intent of Congress to decrease the nation’s use of petroleum products.

Further, Pitts’ new refineries will take a decade to bring on-line and by the time they are ready to produce gasoline, they may be obsolete. Pitts’ bill cannot impact the price of gasoline in the short term and his assumption that Americans will continue to rely on a price-volatile, pollution generating fuel for transportation and electricity generation is absurd.

According to the New York Times, “Most oil companies support the Republican position and are particularly eager for access to the eastern gulf, noting that the water in some parts of it is shallow and drilling would be easy.”

Contributors to Joe Pitts’ re-election campaigns include large contributions from big oil. Joe Pitts has voted in lock-step with the oil-profiteering administration of Bush and Cheney. At the same time he has ignored the needs of diversifying our energy resources and has voted against alternative energy incentives.

With this bill, Pitts has made it perfectly clear again who he thinks his constituency is – big oil – and not his constituents who are paying daily for his mistakes.

 

Paid for by Slater for Congress. Susan Quigley, Treasurer, P.O. Box 3211, West Chester, PA 19381 - 717-207-9330
contact@slaterforcongress.com