For Immediate Release:
Friday, September 29, 2005

Winds of Change

WASHINGTON D.C - While Hurricanes Katrina and Rita decimated many areas of the Gulf Coast, their disruption to oil and gas production was felt nationwide.  All across the country, pump prices broke higher than $3 a gallon for regular unleaded and long lines at stations and limited gas supplies conjure up images of the oil crunch of the early 1970's.  Although all Americans have been hit hard by high prices, nowhere is the impact more evident than in rural areas where long driving distances are a way of daily life. 

 

Oklahomans drive long distances to work and many are on fixed incomes.  For many, the cost of filling up their gas tank has become a choice between fuel and paying other bills.  Our local economies are also taking a hit as high prices drive up manufacturing costs and put significant strain on local schools and governments.  Higher gas prices also mean higher fuel costs for trucks and airplanes and that means higher prices for groceries, clothes, and for the everyday items on the family shopping list.

 

Due, in part, to an increasing worldwide demand and limited supply, the cost of gas has risen dramatically all year.  Adding to this, Katrina wrought havoc on our nation's Gulf Coast energy infrastructure - shutting down off-shore oil platforms and crippling refinery capacity.  Off-shore oil rigs that produced hundreds of thousands of barrels each day before Katrina were severely damaged and remain idle. Many of the pipelines that carry fuel from the region are running at half of their capacity.

 

As we work to get our nation’s refinery capacity back up and running, we must root out price gouging and punish unscrupulous people who try to take advantage the circumstances.  To address this problem, I recently called on the U.S. Attorney General and Chairwoman of the Federal Trade Commission to investigate allegations of price gouging along the production and supply chain and expeditiously prosecute offenders.

 

I have also cosponsored The Anti-Price Gouging Act, legislation to make price gouging a federal crime.  While there is currently no federal law specifically governing price gouging, this crucial legislation would make it illegal for suppliers to charge unconscionable prices for fuel during a state of emergency.   

 

To help with prices in the short term, I have also called on the Administration to release additional barrels of oil from the country’s Strategic Petroleum Reserve, a move that would ensure a stable supply for refineries and drive wholesale prices down. 

 

We also need to increase and strengthen our nation’s refinery capacity. As we saw in the wake of the disaster, an unforeseen problem at any one refinery can send shockwaves through the industry, causing shortages and price spikes.  In June, I voted to pass a comprehensive energy package that would have streamlined the process for building new oil refineries.  Those provisions were removed from the final version of the bill, but our crippled refinery infrastructure have led to a renewed interest in this legislation.  The bill also looks to the future, by investing research dollars into alternative energy sources cleaner for our environment and safer for our children. 

 

Unfortunately, there is no easy fix to nation’s energy challenges.  The recent crisis has led to a larger debate about our nation’s energy security and preparedness.  Congress has many options, but it should begin with a more proactive approach to challenges such as refinery capacity, exploration, and renewable alternative energy sources. 

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