Congress needs to look to future for oil-price relief
Thursday, April 3, 2008 6:26 AM PDT
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E-mail this articleCongressional concern for the plight of American motorists at the pump was in full display Tuesday, as members of the House Select Committee on Energy Independence and Global Warming took turns beating up on representatives of Big Oil. Executives of the nation’s five biggest oil companies were hammered repeatedly for the large profits generated by record oil prices. Some panel members implied that the companies had somehow orchestrated the spike in energy costs. “On April Fool’s Day,” said Rep. Edward Markey, D-Mass., “the biggest joke of all is being played on American families by Big Oil.”
The rough treatment came as no surprise. As November elections draw nearer, political anxieties are rising as fast than the price of a gallon of gas. Members are frustrated over their inability to stop the upward march of energy costs. That’s producing a lot of angry sound bites, but nothing that promises any relief at the pump.
We’ve witnessed this sort of congressional venting over soaring fuel prices before — in 2005, when the price of gas first topped $3 per gallon, and again in 2006 and 2007. Some among us remember long lines at gas stations following the 1973 oil crisis, when gas was only 51.1 cents per gallon. Look at France, where gas cost $9.42 per gallon.
Lawmakers have nothing in their legislative arsenal that could quickly bring down gas prices. So they react to rapid increases in retail fuel costs by calling oil company executives on the carpet and issuing not-so-subtle suggestions of price-gouging and market manipulation.
Members of Congress would do better to give serious thought to developing a smart national energy policy than engage in these periodic attempts to hold Big Oil to account for market conditions that they cannot control. The conspiracy theories about greedy producers, wholesalers and retailers manipulating fuel prices have been debunked again and again. Washington state officials and the Automobile Association of America investigated the 2005 spike in gas prices and concluded that Washington consumers were not victims of price-gouging or any other wrongdoing. Another state probe into high gas prices last year produced the same conclusion.
The high cost of crude oil — now more than $100 per barrel — is a product of high worldwide demand. Global demand for oil is rising faster than it can be taken out of the ground. Oil companies are making record profits because oil is selling at record highs. Speeding up the exploration, drilling and production is a doubtful short-term remedy and no solution for the long term. This is a finite resource, which will only become more costly over the long haul.
Congress needs to look to the long-term. Members should be developing policies that encourage conservation and the development of alternative energy sources. Giving oil executives these periodic tongue lashings may be good political theater, but they serve no purpose.
You forget the devalued dollar. wrote on Apr 3, 2008 9:50 AM:
gatoraid wrote on Apr 3, 2008 2:48 PM:
bull____! wrote on Apr 3, 2008 11:48 PM:
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