Posted on 08/19/2005 5:06:12 PM PDT by JRP0322
WASHINGTON (Reuters) - U.S. Senate Democrats turned up the heat on the White House on Friday to act in the face of record-high U.S gasoline pump prices.
The same day, the Senate Energy Committee set a September 8 hearing on what's behind the prices, which hit a record $2.55 a gallon this week.
That's about 68 cents higher than just a year ago and the biggest weekly increase on record, which has triggered fears that high energy costs could hurt U.S. economic growth.
Lawmakers admit there is no short-term fix to pain at the pump, but are nervous about political fall-out. Gasoline prices are sure to be a hot topic when Congress returns from its recess next month.
Wal-Mart, the world's biggest retailer, warned this week that high gasoline prices have stunted U.S. consumer spending.
"Today's gasoline prices are taking a severe toll on Americans' pocketbooks," said Republican Sen. Pete Domenici of New Mexico, energy panel chairman. "Consumers are anxious."
The hearing will focus on global oil demand, refinery capacity constraints and the impact of futures market speculation on energy prices, Domenici said.
The panel said it has not set its witnesses.
Meanwhile, Democrats urged the White House to act.
Senate Minority Leader Harry Reid on Friday said the Bush administration should require U.S. oil companies to disclose their fuel pricing policies and production costs.
In a letter to the White House, Reid also said the Federal Trade Commission should investigate instances where a state's retail prices rise 20 percent in any given week "to determine if the price of gasoline is being artificially manipulated."
Past FTC probes into U.S. oil company pricing policies have found no sign of abuse.
"This one has already being done," White House spokesman Trent Duffy said. "The FTC and the Justice Department have been keenly watching for this type of activity for the past two years."
Duffy also said that Democrats' attempts to prevent oil drilling in the Alaska's Arctic National Wildlife Refuge, or ANWR, have kept supplies tight.
"Commonsense steps we've tried to take, like increasing domestic oil production by allowing drilling in a small portion of ANWR, have been blocked by Democrats for years," Duffy said.
Separately, Democratic Sen. Bill Nelson of Florida said the White House should ask oil companies for a voluntary, temporarily freeze on prices that they charge gasoline distributors.
Duffy said that price controls in any form are "terribly toxic to the economy" but added he had not seen the specific proposal.
The American Petroleum Institute, the biggest industry lobbyist, said U.S. oil companies are not benefiting unduly from high energy prices, and said that global crude oil shortages and oil prices near $70 a barrel are to blame.
It costs about $2 a gallon for U.S. refiners to turn crude oil into gasoline before transportation and distribution costs are added, said John Felmy, an API economist.
"When you take all those costs out you're not finding unreasonable profits for everything we have to do to get (gasoline) to consumers," Felmy said. "These requests are just unfortunate."
U.S. consumers use about 9 million barrels of gasoline a day -- about 380 million gallons worth.
Ever penny increase in gasoline prices means that U.S. consumers pay about $1.39 billion extra at the pump each year, according to Senate Energy Committee data.
You'd think the Democrats would finally admit that the gas prices prove that their claim that the Iraqi liberation was "all for cheap oil" was nothing but an asinine lie.
But nooooooooooo...now they want government subsidies for gas!
DemoCraps turn up the heat uon themselves. Who is it that blocks oil drilling in the US ? DemoCraps, that's who. Are they really this stupid ? Yes they are !
I see someone beat me to the post sorry for the double post....
| FINDING DEAL$ ON GA$OLINE: |
OK, but what to do about it, short of price controls?
When they block ANWR it is going to look real good. No one is fooled my friend, the RATS are deslusional.
Don't forget Norm Coleman....
I'm with you, BUT, if they did this, they know they would never be able to reinstantiate the taxes. Once the public got used to the real price of fuel minus the taxes, the public would not tolerate the reintroduction of the government gouging at the pump and that scares the libs to death.
Boy it takes a lot of sand to whine about gas prices when your own party stands in the way of drilling.
Congress should start by declaring an emergency and allowing the drilling of oil in federal waters off California and Florida. The federal government owns the leases and it is perfectly legal to do so. Why should the enviro-nazis and federal judges endanger the welfare of our nation by keeping oil production off of federal territory? We'll be waiting to see how serious the Congress really thinks this is or whether they will simply be posturing for the msm as usual.
"I hate to say it, but i'm glad somene is gettin the message."
One of the stupidest things Kerry did was not bring up high prices during his campaign.
I suppose the down side for him was he would be asked what his plan for lower prices was, and he would be cornered into revealing he had none - just like he had no plans for anything.
I am interested to see what is found out about "speculation" on the price of oil. The dumping of hedge fund dollars into oil futures is new and might be a new factor keeping prices high for a long time.
Noticeably Bush admin has not been explaining the reasons for the oil price increase to the public.
my big concern is that people let this one thing affect thier view at the polls.
I dare any pol to vote no on ANWR.
You are right, and also that they are the ones responsible. They are the ones preventing us from drilling, and they are the ones passing all the emissions standards which drive of the price due to cost of refining.........47 different gasolines!!!!!! Not to mention the incresed cost of distributing it. They are the ones taxing the crap out of gas in states, above and beyond the price of gas!! Heck, just eliminate, even if temporarily, the state taxes on gas, and it would be a heck of a lot cheaper!! Then get the Governors together, and cone up with a uniform emissions standard!
Yea, it is going to effect the polls, Bush has been trying to open up ANWR since he was elected. Like I said, the only one you fool is yourself.
Me, too. And not knowing what next week or even tomorrow will bring, it's getting to be a real concern.
So, are they for drilling in ANWAR or anywhere yet?
No, they aren't.
I'm shocked, shocked to find grandstanding here.
Congress should start by declaring an emergency and allowing the drilling of oil in federal waters off California and Florida. The federal government owns the leases and it is perfectly legal to do so. Why should the enviro-nazis and federal judges endanger the welfare of our nation by keeping oil production off of federal territory? We'll be waiting to see how serious the Congress really thinks this is or whether they will simply be posturing for the msm as usual.
Stop me if you have heard this. A temporarary 50 cent a gallon federal tax. Higher prices=lower prices, right? OK, how about extending daylight savings.........
Oh, why stop there, lets go directly to ration cards !!
I'm sure you were in jest, but even price controls do not make more gas nor do they make it cheaper for long. When you won't pay the going price, you won't be going anywhere.
The only solution is to open ANWAR and revrese tha Judges ruling about drilling off of Califronia.
The RATS have completely lost their minds. We all know where the blame lies and it is in the RAT partry.
I know it would take years to get drills in place and start pumping but I would be the minute it was a definite go, prices would start to fall.
They could be even more complete by including all the taxes and the cost of the special blends. Full disclosure, and right on the pump, updated with every fuel delivery. The cost of maintaining the disclosure report itself should also be on the disclosure statement since that will add to the price.
And who blocks the building of new refineries and nuclear power generating plants, and coal based energy production.
Don't forget wind farms off Nantucket. Kerry and Kennedy should especially approve that.
I read sometime ago that the Saudi Arabian economy was up 60%. The wealth of the Western Nations is going to the oil countries, and they will probably use the money to kill us all. Look what bin Laden alone is doing.
Kind of curious why supposed "Free Republic" posters are always looking to the Government to hold their hand anytime anything bothers them? I guess some "conservatives" only believe in smaller Government for other OTHER people.
The real solution is to vote in Republican majorities in the House and Senate, and elect a Republican President.
Then it won't matter what the Democrats think!
Sure, but we're not as schizoid as the Democrats.
They don't want any exploration, they don't want any new drilling, they've made it impossible to build new refineries and they haven't changed their minds, they use oil and gas, they are hypocritical A-holes and it really made me mad that there wasn't a number to press for FU.
Well, Norm did. After the President all but guaranteed his election.
Norm voted with Mark Dayton, against President Bush.
Kind of curious why supposed "Free Republic" posters are always looking to the Government to hold their hand anytime anything bothers them? I guess some "conservatives" only believe in smaller Government for other OTHER people
Exactly what I think of every time some guvmint dummy says we need lower prices.
That would require Federal action, which causes further Federal intrusion into our lives. But, if that's what the people want, that's what FedGov will reluctantly do.
Well, are they serious about energy independence or is it just one more phony issue for them?
I saw something the other day about the potential for $5.00 a gallon in the not so distant future. Rising demand and no expansion of refinery capacity aren't short term problems that can be solved. Throw in the prospect of a terrorist attack on oil fields and it gets ugly quickly.
I agree with drilling in ANWR. I just think the Dems will use the gas prices to further thier cause against the current Admin. No one from the MSM will even ask any of them about why they voted against ANWR
I could care less about Coleman, he is not my rep and if he continues to vote like that he will have a short career.
It's not just the DemRATs. The energy bill that was recently signed by President Bush (and passed by Republican-majority houses of Congress) contains a provision prohibiting drilling in the Great Lakes. Furthermore, Dingbat Republican Senator Liberal Dole of North Carolina does not want offshore drilling in her state.
The media doesn't have to ask questions, do you think people are idiots and don't know where the blame lies ? The MSM is just about powerless anymore, most people get their news from other sources. It's over for the RATS and the MSM and they just don't know it yet.
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