Using a Sinclair service station as a backdrop, U.S. Sen. Orrin Hatch unveiled a bill Thursday aimed at increasing domestic oil production while reducing gas prices at the pump. Posted on 05/06/2005 11:43:04 PM PDT by M. Espinola
Using a Sinclair service station as a backdrop, U.S. Sen. Orrin Hatch unveiled a bill Thursday aimed at increasing domestic oil production while reducing gas prices at the pump.
"Whether you're a mother driving your daughter to ballet, a farmer working the soil on your tractor, a small business that makes deliveries or one that relies on deliveries, or even a senator making a long commute every day, we have all been feeling the sting of high gas prices," Hatch, R-Utah, said during a news conference.
Hatch plans to introduce his bill, titled "Gas Price Reduction Through Increased Refining Capacity Act of 2005," in the Senate Monday.
He also hopes to include the legislation in the Senate's tax energy package that will be considered by lawmakers.
The bill is part of a three-pronged approach from Hatch to address energy issues.
Last week in the Senate, he introduced the "Clear Act", which is a bill that would provide tax incentives for the purchase of alternative and hybrid motor vehicles as well as for new alternative fuel infrastructure and the retail sale of alternative fuels.
He plans to sponsor within the next couple of weeks, a separate bill to develop tar sands and oil shale reserves in Utah, Colorado and Wyoming. There is as much recoverable oil in those reserves as there is in the Middle East, Hatch said.
The development of tar sands and oil shale reserves in Utah isn't a hot topic with environmental groups because it hasn't proven to be a financially viable energy alternative, said Heidi McIntosh, conservation director for the Southern Utah Wilderness Alliance.
Financial incentives are at the heart of Hatch's bill to increase oil refinery capacities. The bill would adjust the depreciation schedule for new refining equipment from 10 years to five years to make refineries consistent with other U.S. manufacturers.
For refiners who commit to starting construction on new refining equipment before 2007 and have new facilities built by 2011, the bill would allow a complete tax write-off for new equipment in the first year.
Oil refinery capacities measured in 1,000 barrels per day
"This is a powerful incentive, and I believe it will capture the attention of decision-makers in the refining industry," Hatch said.
No new refineries have been built in the United States since the early 1970s, and about 200 have closed since then, Hatch said.
"Our powerful nation is left with only 149 overworked refineries," he said. "As a result, we now meet the gap in demand by importing more and more oil products that have already been refined, which makes us all the more dependent on foreign countries,"
Bob Slaughter, president of the National Petrochemical & Refiners Association, described Hatch's proposal to offer tax incentives to increase refinery capacity as a positive and equitable way to address the nation's energy issues.
Although the demand for petroleum is high, many oil companies in the United States are reluctant to finance projects to expand refinery capacities without incentives, such as the tax break proposed by Hatch, because of huge capital costs and marginal financial returns on the investment, said Slaughter.
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Huge environmental costs. The sleeping public hasd allowed the Sierra club and others of their radical ilk to sway energy policy for decades.
C'mon and wake up! We have'nt built new refineries in 20+ years. When the dollar hits the pocket book of the soccer
mom then the cost and shortage of oil matter.
Hatch needs our support, bless him. The old media has ignored this issue. The new media and bloggers have the opportunity to educate citizens in a realistic and balanced manner.
Hatch is a whore, but I think he's right on this issue.
You're a coward, Heidi. If you want to make a threat, make it sound like a threat.
(Denny Crane: "Sometimes you can only look for answers from God and failing that... and Fox News".)
The left wants to force all of us into teeny tiny hybrids whether we like it or not.
I agree ChiMark. Well said!
Yeah, and all the while they'll still be those that ride in limo's and drive SUV's...........mainly politicians that would have us drive those hybrids you speak of.
We were told by those in the industry that there are some 97 different blends when there should really be only 2 or 3. It makes it impossible for refineries to help each other out when there are local shortages.
We also need higher octane as well. Years ago Sunoco had 103 octane, it was like jet fuel! :)
Unless refineries produce near lab-grade tri-iso pentane as gasoline (absolutely out-of-the-question prohibitive) high octane has gone the way of the tetra-ethyl lead additive. That stuff was so powerful that refineries could produce almost any octane product from any crude.
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