Petroleum is necessary for fuel, food, and fiber regardless of high cost subsidized alternate fuels.
Americans, who consume 25 percent of the world's daily oil supply, purchased less efficient vehicles after oil prices fell from $30 to $10 per barrel in the 1980s. This led to our dependence on imported oil, nearing 67 percent of demand.
History suggests that America should reduce foreign oil imports by 20 percent, adding 2 million barrels per day to world supply. This is achievable through conservation, alternate fuels, adding to domestic reserve supplies and building refineries away from the current concentration in the gulf area.
We have untapped local supply adequate for reasonable energy independence. Mother Earth is continuously cooking more oil and natural gas.
Independent exploration companies without refineries who drill 80 percent of our wells are working to add to our nation's supplies. Skilled and environmentally sensitive exploration managers benefit from new technologies. They accept the price of oil determined daily by the New York Commodity Exchange.
Benefits of a local supply are national security, reducing balance of trade deficit, large numbers of skilled Americans employ-ed, tens of millions in royalties paid to mineral owners and Michigan Natural Resources Trust Fund annually, and relatively low energy prices.
Thomas Mall, Director, Michigan Oil and Gas Producers Education
July 10, 2007