By Robert Pore
robert.pore@theindependent.com

With crude oil hitting a record $115 a barrel, Congress has fallen short on developing an energy policy that addresses this country's dependency on foreign oil, said U.S. Rep. Adrian Smith, R-Neb.

"That (energy prices) is affecting our economy more than the housing slowdown and other things because energy issues touch everyone," Smith said. "I realize that we need to achieve energy independence. But when I say energy independence, I think we need all sources of energy."

Smith said America continues to be bogged down on how to achieve energy independence because of distractions about America's energy portfolio that cause the lack of a clear, decisive policy.

"I think we get distracted by too many things when it comes to the energy debate and hopefully we can move on with the expansion of hydro, nuclear, wind, solar power and so many things that I think we fall short on right now," Smith said.

But Smith said moving away from this country's addiction to oil will take time.

"We need to recognize the economic reality that exists because of our oil dependency," he said.

According to the Renewable Fuels Association, worldwide oil production is expected to reach 87 million barrels per day in 2008 with China's oil demand growing by 1 million barrels per day.

But American refineries are utilizing 9 percent less of their capacity compared to last year, according to the Energy Information Administration.

Smith's 3rd Congressional District is the nation's largest ethanol-producing congressional district. He said the continued debate on the rapid growth of the nation's ethanol industry and whether it's the cause of higher food prices is one of those distractions that keep the United States from fully developing a comprehensive energy policy.

"The growing criticisms of biofuels concern me a lot," Smith said. "I think there are some misunderstandings out there."

He said to blame ethanol for rising food costs assumes that this country has an energy policy in place that's working.

"We know that's not the case," Smith said. "To me, it's very obvious that the biggest reason for food costs is energy."

According to the Renewable Fuels Coalition Now, the impact of biofuel production pales in comparison to factors such as the price of oil.

For example, in 1949, the price of corn averaged $1.24 per bushel. Corn futures recently were going for $6.13 per bushel on the commodities market. That's an increase of 394 percent in 59 years.

But when it comes to oil, in 1949, it averaged $2.54 per barrel compared to a recent $113.70 per barrel. That's an increase of 4,376 percent in the same 59 years.

Smith said ethanol plants are becoming more efficient every year, using less water to make ethanol and getting more ethanol from a bushel of corn.

"I think that is good news, and not enough of the critics understand the new developments," he said.