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With the unrest in the Middle East and domestic energy policy decisions affecting global energy markets and domestic gas prices, Americans are once again calling for a strong U.S. energy policy to reign in the high gas prices, which are eating up more of their monthly budgets and increasing the costs of other consumer goods.

The recent events in Egypt, Libya and the Arabian Peninsula have cast a shadow over Middle Eastern oil production given the vulnerability of those supplies to terrorism and military activities in the region. Similarly, the shutdown of exploration and production in the Gulf of Mexico by the Obama administration over the last year will reduce domestic oil production by 13 percent in 2011. Taken together, these events have led to a surge in worldwide oil prices. In fact, since February 2011, oil prices have increased about $20 to more than $105 a barrel, which already is having a huge impact on energy consumers across the United States.

According to the U.S. Energy Information Administration, higher oil prices translate into the average U.S. household spending about $700 more in gasoline than it spent in 2010. And, according to Cameron Hanover – a firm specializing in the management of energy price risk – a one-penny increase in the price of gasoline will cost consumers an additional $4 million per day – which equals $1.4 billion over an entire year. Given the current situation, it should come as no surprise that nine out of 10 Americans are concerned about rising gas prices.

During these tumultuous times, Americans are once again reminded that producing our plentiful domestic energy resources is one of the best tools we have to strengthen our economy and to protect it from damaging oil price spikes. With worldwide energy demand expected to rise by 49 percent over the next two decades, now more than ever, Americans are clamoring for a thoughtful, balanced U.S. energy policy that properly and effectively uses our abundant natural resources.

While no one can disagree with President Barack Obama about the need to reduce U.S. reliance on overseas oil imports so that America’s energy future isn’t left to the fate of foreign leaders, we are concerned that his plan for getting there is not ready for prime time, especially when it involves assuring Brazil that the United States will support its offshore drilling program and is willing to be its best customer. Rather than pushing domestic policies that will ensure increased dependence on overseas oil – such as shutting down exploration and production in the Gulf of Mexico, increasing taxes on domestic energy production and keeping the massive energy reserves in Alaska and the Southeast Atlantic under lock and key – we believe that it is time for this administration to increase U.S. energy independence by developing a coherent energy policy with a defined regulatory process.

By leveraging the United States’ abundant energy resources and promoting a reasonable approach that supports the use of all sources of American energy, the United States can meet its energy needs and control its energy destiny – all while creating jobs, strengthening energy security and paying down deficits with increased government revenues. 

A recent report from the Congressional Research Service estimated that U.S. combined recoverable oil, natural gas and coal resources total 1.3 trillion barrels of oil equivalent – the largest in the world and more than Saudi Arabia, China and Iran combined. Additionally, the U.S. Department of Interior estimates that there are currently 85.9 billion barrels of oil and 420 trillion cubic feet of natural gas available in federal offshore areas – enough oil to produce gasoline to run 192 million cars and heat 78 million homes for 15 years.

Offshore Alaska alone could ultimately provide more oil and natural gas than the Gulf of Mexico has over the past 50 years. Indeed, a recent study found that by developing Alaska’s offshore oil and gas supplies, more than 54,000 new American jobs could be created nationally, as well as $145 billion in new payroll and $193 billion in new deficit-reducing government revenue that would benefit the U.S. economy. In addition to supplying the lower 48 states with a huge source of economic opportunity through energy supplies, revenues and jobs for generations to come, these resources also will benefit Americans across the United States.

From federal lands that could contain an estimated 31 billion barrels of oil and 231 trillion cubic feet of natural gas to shale gas plays that could supply at least enough natural gas to supply the nation for the next hundred years, it’s clear that the United States has a tremendous capacity of resources available. Combined with growing wind and solar options throughout the country, American oil and gas can work just as well as that from the Middle East.

With news like this, you would think that policymakers would line up in support of the thoughtful utilization of our nation’s abundant resources by exploring innovative ways to leverage America’s vast and diverse energy supplies. Unfortunately, the Obama administration has continued down the path of keeping America’s abundant domestic energy resources under lock and key by restricting access, erecting regulatory obstacles and holding up viable permits – causing higher fuel prices, the loss of good-paying jobs, reduced government revenues and a weaker economy.

Given the enormous impact that energy policy has on the U.S. economy and national security, it is time to set forth a clear and reasonable path that will promote all American energy resources. With pressure and uncertainty building in the Middle East, and analysts estimating that gas pump prices may reach $5 per gallon by this summer, it’s time for U.S. leaders to get serious about the impacts of high transportation fuels on the economy, as well as the need for U.S. energy independence.

David Holt is the president of the Houston-based Consumer Energy Alliance. For more information, visit www.consumerenergyalliance.org.