Senator Bingaman and Rising Fuel Costs: Please comment
Though at the end you can see my response, first let me remind you, that I do hold the Senator with great respect. He does much good for our country, and has served us well for many years. Check his voting record to get a snapshot on where he’ll stand up for justice, environment, etc. His energy ties also are clearly delinated there too. I just thought this commentary went just a little off the wall. Perhaps a genuine attempt at doublespeak. The oil industry also is trying their best to invade NM, near watersheds, environmentally fragile areas, etc. A little research reveals many outright lies, but the companies are brash as Custer and will fight manicaly at their hunger to rape the land and carry away the dollars. Read on to get a more “balanced perspective” from the Senator.
Newsletter Update from U.S. Senator Jeff Bingaman - June 24, 2008
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Addressing Rising Fuel Costs
Like many Americans, I am concerned about the rising price of gasoline. In my position as the chairman of the Senate Energy and Natural Resources Committee, I have been working to get a clear picture what actually is going on in oil and gasoline markets, and to find ways to reduce our nation’s reliance on imported oil.
There are many reasons why oil and gasoline prices are at all-time highs. Some of these factors have been building for a long time; others are more recent developments.
Among the more recent factors in pushing up oil and gasoline process is the weakness of our economy and the U.S. dollar. Our national economic policies have been out of touch with reality for most of the last eight years – focused on delivering large tax cuts to a few Americans, paid for with money borrowed overseas. The resulting poor economic growth and spiraling national debt have made the dollar less attractive, compared to other world currencies. As a result, we pay for oil and other world commodities with a weaker currency, which makes our pain at the pump worse.
Another new factor is the oil futures market. Many energy experts have commented on the increase in speculation that has pushed up oil and gas prices around the world. While estimates of this effect vary, it is clear that many aspects of the energy markets are poorly understood.
Finally, there are the traditional fundamental forces of supply and demand. Global energy demand is growing strongly, particularly in economies in countries that heavily subsidize the price of energy to their consumers.
Effective action to address high gasoline prices has to occur on many fronts. I have been working on a variety of steps, both long-term and short-term, that target the root causes of high energy prices.
Last December, Congress took a major step toward reducing our nation’s long-term oil consumption by requiring that vehicles become nearly 50 percent more efficient, putting overall vehicle fuel economy at 35 miles per gallon by 2020. Some experts estimate that this move will reduce our daily consumption by over 1 million barrels per day.
That same law also helped our long-term energy supply by moving us towards replacing billions of gallons of gasoline annually with homegrown biofuels, including second-generation biofuels made from switchgrass and algae.
More recently, Congress enacted legislation to end the White House’s misguided policy to remove oil from the market to fill the Strategic Petroleum Reserve, which is already 97 percent filled. By ending this diversion of oil from the open market this move adds 70,000 barrels of light, sweet crude to the market daily – a modest, but useful step in the right direction.
Because market speculation is an important contributor to the recent spike in the price of oil, I pressed the Commodity Futures Trading Commission — which regulates the oil futures market — to exercise its regulatory authority to ensure that markets are functioning properly. In response to my concerns, the Commission has initiated a new investigation into whether markets are being manipulated. I am strongly pushing for legislation that would give the Commission the authority to step up its role, and help make oil trading more transparent.
Over the longer term, we’ll need to keep encouraging domestic production of oil and gas. Part of that will involve increasing production in areas that are most likely to yield new supplies soon. I have consistently supported increasing onshore production through disseminating advanced technology to domestic oil and gas producers, many of whom are independent producers, and through making sure Federal agencies have the resources necessary to expedite the approval of responsible new production.
We also need to find out why companies have yet to begin producing on the millions of areas already leased – both onshore and off – that are ready for production, but remain idle. Thirty-one million of the 45.5 million acres of public lands that have been leased out are not currently being produced. Likewise, there are 33 million acres in the Outer Continental Shelf that are under lease yet no drilling has begun.
There is no doubt that the high price of gasoline is creating a substantial economic burden on American families. That is why I will continue pressing for long-term and short-term solutions that will allow our country to reduce our dependence on fossil fuels, including promoting alternative, homegrown fuels that will help achieve energy security and economic prosperity.
Your Thoughts*
This is a very good attempt to describe how energy inefficient we are. However, bottom line our own oil cartel backed by an illegal war effort in Iraq, has put the money in the rich oil mongers pockets in unprecendented high profits. This is a calculated massacre well orchestrated and not confronted by any office. We once had anti-trust and racketeering laws that would be enforced in similiar circumstances. We have a COngress too afraid to stand up to the Oil Emperor Bush, or his cronies. It’s also a great ploy to decimate fragile environments, pollute the ocean, and allow the boys to enact their destruction we don’t care malicious fatal attacks. AS a senator long funded by oil and nuclear energy folks, it’s difficult for you to fess up to the policies that subsidze oil companies, nuke plants, and other environmentally minded concerns. And you are a “good” guy. In the short run the planet will evict the human race soon enough because no one has found an effective way to stand up for the right thing or the good of the people. Example, if small poor countries can subsidize consumers costs at the pump, surely the USA could too, if it wanted to. We’d rather export jobs, hire illegal alaiens, and line massive bank accounts of the oil mongers. C- for the govt. no efforts to help American Families.
Sincerely,
Mary MacIntyre
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