What can be done to lower pump prices?
With demand rising, the most important thing to do in the long term is increase supply. And the best way to do that is through greater oil exploration. The problem, though, is that there are significant restrictions to doing so. A lot of attention has been paid to the controversy over the development of ANWR in Alaska. There are environmentally friendly ways to get access to that oil that should be looked at, but that’s only one piece of the puzzle. Right now, 75% of the best locations for onshore oil production, as well as 85% of the coastal waters in the continental U.S., are either off limits or heavily restricted. There’s plenty of interest in developing our domestic oil supply, but these restrictions make it pretty tough. But that’s long term. I’m feeling pain at the pump right now! In the short term, Congress could suspend the federal gas tax, which currently accounts for about $0.18 per gallon of the price you pay at the pump. There are several proposals to do this, but the one
