Fred Jones Posted September 7, 2005 Share Posted September 7, 2005 Senator wants price gouging protection Committee head wants to know why gas prices are so high while oil companies make record profits. http://money.cnn.com/2005/09/06/news/energy_hearing/index.htm NEW YORK (CNN/Money) - Asking fellow senators to put finger-pointing over Hurricane Katrina's devastation aside, the head of the Senate Energy Committee called Tuesday for a gasoline and oil act to protect citizens from price gouging. "Hurricane Katrina exposed the harsh reality that we have been skating on thin ice when it comes to this country's energy concentration in the Gulf Coast," said Energy Committee chair Senator Pete Domenici, Republican from New Mexico. "Rising gasoline prices this year have been hurting consumers across the nation," he said in opening remarks during the afternoon's committee hearing to discuss the nation's looming energy crisis. Testimony focused specifically on why gasoline prices are so high while oil companies make record profits; with a longterm goal to hammer out policies about price gouging, unfair speculation and what Senator Domenici called "unconscionable profiteering." "The Federal Trade Commission is not specifically subject to the jurisdiction of this Committee, but any oil company that is price gouging will find themselves in those witness chairs where they will be made accountable," said Domenici. The first panel slated to testify included Johnnie Burton, director of the Minerals Management Service, a unit of the Department of the Interior; Guy Caruso with the Energy Information Administration; and Dr. James Overdahl, chief economist with the Commodity Futures Trading Commission. Committee Democrats said they are concerned about Americans struggling with soaring gas prices and high crude prices bankrupting the nation's airlines, while oil companies are making record profits. Some Republicans said U.S. environmental laws are keeping the U.S. from producing additional fuel sources that would lower energy costs. Lisa Murkowski, Republican from Alaska, added that Hurricane Katrina showed the country that it is a vulnerability to keep all of our energy resources in one place. Gas pains versus corporate gains During his testimony before the Congressional panel, Caruso said that the latest weekly average retail price for a gallon of gasoline will be above $3 a gallon due to the impact of Hurricane Katrina on Gulf Coast refineries and pipelines, versus last week's $2.61 per gallon. "We expect gasoline prices to ease off in coming weeks," Caruso added. Moreover, he said that heating oil prices will be, on average, 30 percent higher than they were last year. The CFTC's Overdahl told the Senate committee that, "Consumers of energy products, who are paying these higher prices, deserve to know that energy prices are being set fairly in an open and competitive environment." But Democratic Senator Ron Wyden said the primary reason for sky-high prices is that "the government isn't in the consumer protection business anymore." He added that, given the fact that oil companies are booking record profits, government is allowing corporate profits to take priority over the needs of U.S. citizens. "It is hard to reconcile (massive corporate profits) when we all know the consumer is pushed to the brink," said Dianne Feinstein, Democrat from California. She said she has urged the nation's top seven oil companies to implement voluntary price restraint, adding that the former President George Bush did so and that she hopes the current President Bush would be willing to do the same. Gordon Smith, Republican senator from Oregon, in addressing the question of market manipulation and price gouging, said Americans have faith in the free market system, also fear they are being cheated. He proposed creating a law that sets a benchmark price for gasoline, anything above which would trigger investigation into market manipulation. A windfall profits rebate was proposed by a different senator, whereby oil companies give consumers a break and use their $80 billion in windfall profit to ease fuel costs for the public. "Conservation is the best short-term measure we can take," said Johnnie Burton, echoing comments made by speakers from both sides of the aisle amid the debate over who was responsible for sky-high prices. Link to comment Share on other sites More sharing options...
Johnny Punani2 Posted September 7, 2005 Share Posted September 7, 2005 How about lowering taxes on gas? That would make more of an impact. Link to comment Share on other sites More sharing options...
twa Posted September 7, 2005 Share Posted September 7, 2005 How about lowering taxes on gas? That would make more of an impact. What are you a commie Big Brother needs your money. Seriously they need to investigate gouging ,but price controls will lead to shortages. I hate paying three bucks a gallon ,but it beats waiting a hour or longer in line just to get it. Link to comment Share on other sites More sharing options...
chomerics Posted September 7, 2005 Share Posted September 7, 2005 How about lowering taxes on gas? That would make more of an impact. That's what the "blue state" of Mass is doing. Link to comment Share on other sites More sharing options...
Sarge Posted September 7, 2005 Share Posted September 7, 2005 How about getting rid of the enviro BS that has made it nearly impossible to build a refinery in 30 years? How about getting rid of the enviro BS that has stopped us from exploring for and drilling for our our oil? How about asking some oil company execs why the price of gas is so high and yet they still pull billions in profit? Link to comment Share on other sites More sharing options...
chomerics Posted September 7, 2005 Share Posted September 7, 2005 How about asking some oil company execs why the price of gas is so high and yet they still pull billions in profit? You're starting to think like a commie democrat Sarge, cut it out :laugh: Link to comment Share on other sites More sharing options...
Sarge Posted September 7, 2005 Share Posted September 7, 2005 You're starting to think like a commie democrat Sarge, cut it out :laugh: Dammit. Here in the last month or so I've been accused of sounding like a commie Dem on overseas job losses and now this :doh: I gotta work on my image Link to comment Share on other sites More sharing options...
Johnny Punani2 Posted September 7, 2005 Share Posted September 7, 2005 How about getting rid of the enviro BS that has made it nearly impossible to build a refinery in 30 years?How about getting rid of the enviro BS that has stopped us from exploring for and drilling for our our oil? How about asking some oil company execs why the price of gas is so high and yet they still pull billions in profit? Speaking of enviro BS, I just heard on the news that the main opponate to increasing the Army Corp of Engineers budget to improve the levees around NO were...you guessed it! The enviromental lobby.... There were worried about the impact the levees might have on the enviroment. Now, NO is a toxic lake and they are pumping that toxic waste into surronding wetlands and lakes. Another great move by the tree huggers....:doh: Link to comment Share on other sites More sharing options...
dreamingwolf Posted September 7, 2005 Share Posted September 7, 2005 Speaking of enviro BS, I just heard on the news that the main opponate to increasing the Army Corp of Engineers budget to improve the levees around NO were...you guessed it! The enviromental lobby....There were worried about the impact the levees might have on the enviroment. Now, NO is a toxic lake and they are pumping that toxic waste into surronding wetlands and lakes. Another great move by the tree huggers....:doh: ::snicker:: as to the the gas price protection, Im all for cheap gas but we must be responsible the market must determine the value. If that forces people to car pool and use mass transit, that is what the market commands. Making gas cheaper than what it is even by cents reduces the profits majorly, and I for one dont want such a precious commodity to be reduced to the investors that are attracted to 7/11 ownership(not that its a bad investment, but they arent exactly the cream of the crop more of just a cash generator). There needs to be a strong profit to make it a well oiled machine, yes pun intended. Also, these behemoths of "greed" that people like to label them, are the same ones doing R&D in new forms of energy. Slash their profits to nothing and that goes away, sure the colleges will work on it but all the minds and money that can be put on it should be put on it. They are such a critical infrastructure I dont mind their profit, just like I dont mind the money doctors or lawyers make. You get what you pay for, people act on their pay check. I always get nervous when people want the government to determine the market worth of services, sure its not a rule of thumb to oppose the government determining worth in the market but Im always skeptical. Also, the government usually is pretty good about preventing gouging. The thing that worrys me is the loons that call fair market value gouging, sometimes you have to curb the publics consumption due to the market. How many people know someone who would drive a quarter mile instead of walking, not to pick up stuff but just to go and have a game of chess or just to bs. We all do and many of us are that person, wether to avoid the elements, cause they can, cause its faster, it can be any number of reasons. before chomo calls me a pinko commie, many conservitives call me a statist and the chomo's call me a jingoist so since both extremes hate me I feel like I can call myself a moderate. I just think theres nothing wrong with the market dictating consumer behavior, if a company charging too much there will always be one charging less and another one charging even less. The only corporate hate on pricing I agree with the left on is the one where companys undercharge to drive out competition, although I would probably say it should happen and consumers should refuse to shop there I know that is an impossible dream so I can agree on that being policed. I agree price gouging is bad, but lets not let politicians buy votes by capping prices which is really the emotion of pieces like this. Ride gouging and the ponys will attach gas prices to it be they gouged or not, china capped their gas price and they nearly stalled where even the refinery employees couldnt get gas to get to work. So when we approach gouging attached with the "wicked" profits of the industry, lets atleast be reasonable about it and not wreck the infrastructure that is so critical to us. Link to comment Share on other sites More sharing options...
Ignatius J. Posted September 7, 2005 Share Posted September 7, 2005 I'm with dreamingwolf on this. Gas is so cheap that it rarely affects our decisions to drive. The fact that an irreplacaeable commodity might have to be budgeted by consumers is not unreasonable, it's unavoidable. Link to comment Share on other sites More sharing options...
Johnny Punani2 Posted September 7, 2005 Share Posted September 7, 2005 I think it's pretty clear to everyone with a brain that the overall cause of the large increases in crude oil, gas, etc over the last year is a manipulation of the energy markets. The same goobers that lost their ass in the dot.com bubble missed the "get rich quick market" and found energy easy to manipulate. Link to comment Share on other sites More sharing options...
dreamingwolf Posted September 7, 2005 Share Posted September 7, 2005 I have a brain and I tend to think the "manipulation" tends to center arround the usage, prices go up arround the added vehicle use durring the vacation times and they go down when people arent driving so much. Throw in some damage from natural events, and you get some high prices. Add again douche bag dictators and terrorists, they f with it some too. The market is the market, they contend with all kinds of issues but one thing they cant be compared to is the dot com people. That was a whole nother can of worms. Link to comment Share on other sites More sharing options...
codeorama Posted September 7, 2005 Share Posted September 7, 2005 Rather than placing a price cap, maybe they should investigate WHO is price gouging and let the public know. Point the finger. For example, go on TV and say, if you pay more than ______, you are getting ripped off. Then many people will possibly avoid the stations/companies that are gouging them. I know in my city, gas is 3.19 almost everywhere, except for these 2 convienience stores that sit side by side. They have a price war going on (and have done it in the past as well). They are down to 2.89 and dropping a penny a day. Link to comment Share on other sites More sharing options...
dreamingwolf Posted September 7, 2005 Share Posted September 7, 2005 I think what the they do is if they find the gouging they fine them, and force them to fair market value The government seems to react to gouging, maybe some areas are real corrupt and it never happends but I seem to see them correct it when it happens. Link to comment Share on other sites More sharing options...
Prosperity Posted September 7, 2005 Share Posted September 7, 2005 First of all gas prices will only get more expensive no law will make oil any less scarce. Secondly according to my Macroeconomics class these "price gauging laws" will forcefully lower the price therefor the supply won't be able to meet the demand and there will be shortages. The best way to alleviate this problem is to voluntarily reduce want if you want to pay less then use less. Link to comment Share on other sites More sharing options...
Prosperity Posted September 7, 2005 Share Posted September 7, 2005 I think what the they do is if they find the gouging they fine them, and force them to fair market valueThe government seems to react to gouging, maybe some areas are real corrupt and it never happends but I seem to see them correct it when it happens. how do you define fair market value? Link to comment Share on other sites More sharing options...
Predicto Posted September 7, 2005 Share Posted September 7, 2005 Speaking of enviro BS, I just heard on the news that the main opponate to increasing the Army Corp of Engineers budget to improve the levees around NO were...you guessed it! The enviromental lobby....There were worried about the impact the levees might have on the enviroment. Now, NO is a toxic lake and they are pumping that toxic waste into surronding wetlands and lakes. Another great move by the tree huggers....:doh: Substantiate this claim please. Link to comment Share on other sites More sharing options...
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