By Rod Funderburk and Lewis Gossett
While headlines scream about the rising prices of oil and
gasoline, the dramatic increases in the price of natural gas go
virtually unnoticed. Natural gas is a crucial part of our lives,
whether it is the source of energy for the local factory, an
essential raw material for everyday household goods or the fuel that
heats many of our homes.
In fact, a large part of the American economic engine depends
upon a reliable, abundant, reasonably priced supply of natural gas.
Although this vital commodity is relatively abundant in the United
States, our supply is neither reliable nor reasonably priced.
This dilemma is particularly difficult to swallow when we
consider that much of the growing crisis results from a
self-inflicted wound. That's right. America, the world's largest
economic power, pays the highest natural gas prices in the world and
faces potential supply disruptions; however, we cannot blame foreign
governments or the never-ending crises in the Middle East as the
culprits. Rather, since natural gas is a regional, not global,
commodity, generally used where it is produced, we must look closer
to home for the root of the problem.
Not surprisingly, our government deserves much of the blame. The
Clean Air Act of 1990 encourages the use of cleaner-burning natural
gas, and environmentally conscious industries and private consumers
have made the switch to natural gas in droves, thus increasing
demand. We could meet that demand with known American deposits of
natural gas, but remarkably, current federal policy places a
moratorium on natural gas exploration. Through short-sighted,
uninformed decisions, our government has created an energy crisis
that should never have existed.
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What exactly, though, does the natural gas problem mean to you
personally and to the state of South Carolina in general? Begin with
the increasing cost of heating your home.
Consider also that many of the manufacturing facilities that form
the foundation of our state's economy are heavy users of natural
gas. Increases in this essential production cost will effectively
reduce their already thin operating margins, if not eliminate them
entirely.
Don't expect manufacturers to cope by passing on these increases
to you, the consumer. Global competition is now such that foreign
competitors are already threatening our manufacturing base with
cheap labor, unfair trade practices and little or no government
regulation. Throw in ridiculously high energy costs, and plants will
close.
Energy production isn't the only use for natural gas, though, as
it is an important raw material in the plastics, chemical and
farming industries. Take, for example, plastics, South Carolina's
leading manufacturing sector.
Of late, the plastics business has been relatively good,
particularly in the Greenville-Spartanburg-Anderson area, which
ranks among the nation's top 20 producers of plastics that you see
and use every day. Rising energy costs, however, have created a
serious competitive disadvantage, and more importantly, in plastics
production there is no alternative to natural gas as a raw material.
The result: The plastics sector lost more than $14 billion in
business to foreign countries as a direct result of the tripling of
natural gas prices. That will mean fewer jobs for the Upstate.
It is imperative that we increase the domestic supply of natural
gas. The Outer Continental Shelf contains enough natural gas to heat
100 million homes for 60 years. This abundance of deep-sea natural
gas can be retrieved safely, and with potential offshore platforms
located far out at sea, we wouldn't even see unattractive drilling
platforms in front of us as we visited South Carolina's wonderful
beaches.
New technology means an increase in natural gas supply with very
little risk. As proof, more than 3,000 platforms stood in the path
of 2005's two catastrophic hurricanes, but the U.S. Minerals
Management Service reports that there were no significant spills
from any of these platforms. We can maintain the aesthetics of our
beaches and coastal towns, protect our fisheries and other natural
resources, and still provide the energy you and your employers need.
U.S. Sen. Jim DeMint has been an outspoken leader for energy
independence. DeMint and many from both political parties support
current energy bills that would allow for exploration at many
promising offshore areas. Recently, U.S. Sen. Lindsey Graham
signaled his intent to vote to lift the moratorium on natural gas
exploration. We must encourage all of South Carolina's members of
Congress to favor legislation that will allow access to natural gas
on the Outer Continental Shelf.
It is foolish to continue punishing the American consumer. It is
foolish to needlessly force our businesses to close and our people
to accept a lower standard of living. Fortunately, we have a clear
and obvious opportunity to end a self-inflicted energy crisis. The
time is now. We cannot afford to wait. |