Another Domestic Source

The USGS has found about 3.65 billion barrels of oil under the northern plains, This is 25 times more than they had previously thought existed there. The cited news release was posted in April of this year. Drill here, drill now! Let's go get it. Seriously, I doubt the jack rabbits, pronghorn and sage brush will mind.

This blog is dedicated to reducing the cost of energy for all Americans. There are two ways to fight that fight. One is to confront the unfair pricing tactics of the oil companies, the fuel wholesalers and the retail outlets. The other is to drive the price of the raw constituents of fuels down by increasing the supply side of the equation.

Besides at a price of $100 per barrel, that 3.65 billion barrels of oil represents $365,000,000,000.00 not leaving our economy for the economies of nations that despise us.

And the Duo Becomes a Trio

No sooner do I welcome my friend DI as a contributor here before Heidianne Jackson accepts my invitation to become a contributor as well. Heidianne is another excellent blogger with acute logic and a razor sharp incisive pen. She hails from KC-Mo. That gives us one voice on the West Coast (myself) one voice on the East Coast (DI) and now a strong voice in the middle of the country. Welcome Heidianne!

A New Voice Joins the Fray

I'd like to take this opportunity to welcome a new blogger, Defiant_Infidel as a contributor to this blog. DI is located in Maine. He is a phenomenal blogger whose well considered, well constructed writing has often made me pause and reconsider my opinions. Again, welcome to the fray my friend. I'm excited to see you here and look forward to hearing your point of view.

Now, The Oregon State Department of Justice's Turn

A little research on the internet revealed that the department charged with administering and enforcing gasoline price gouging laws is the State Department of Justice. Perusing their web site, I found the e-mail address of Jan Margosian, a person responsible with reacting to requests from the media. Being a blogger, I consider myself media so therefore I penned Jan an e-mail. Here is that e-mail:

Allow me to introduce myself, I am a blogger and citizen of the state of Oregon who is concerned about inequitable predatory gasoline pricing policies.

Your department's web site contains a form (http://www.doj.state.or.us/hot_topics/gas.shtml) where citizens can report individual gas stations that they believe are engaging in unlawful gasoline price fixing. It is geared toward reporting a single gas station and therefore inadequate. I'd like to report price fixing and predatory pricing practices at every gas station across the state (and nation for that matter). The proof of this price fixing is simple and incontrovertible. The price of oil yesterday (10/15/2008) was about $73.00 per barrel and the average price of gasoline was well over $3.00 per gallon. The last time that oil was about $73.00 a barrel was back on September 7th of 2007. The average national price of gas at that time was $2.75.

As I've already said, I am a blogger and I am engaged in writing a series articles that cover this inequitable pricing practice and our state and federal government's reaction to it. With the fact that we a being gouged at the pumps so simply and incontrovertibly proven, could you tell me and my readers what your department is doing to prosecute those inflicting this predatory practice on the people of this state and therefore end it? Clearly with the economy in such wide-spread distress, the last thing the citizens of this state need is the inflationary effect that these inequitable gasoline prices cause. If your department is not engaged in moving against the perpetrators of this crime can you explain why not?

Thank you in advance for your time responding to my inquiry. I look forward to it.

So let's see what (if any) response I get.

Gas vs Oil Price Comparison

Source

First Reply Received

I've received my first reply from a Congressman. Here is Senator Ron Wyden's response in full:

Thank you for contacting me to share your concerns and frustrations about high gasoline prices in Oregon. I appreciate hearing from you on this important issue.

Like many Americans, I am alarmed by soaring prices at the pump and the financial burden that energy costs are placing on families, individuals, and businesses. The dramatic increase in the price of gasoline and diesel fuel is caused by many factors including deliberate manipulation of world oil supplies by the OPEC oil cartel, the falling value of the U.S. dollar, and by speculation in the financial and commodity trading markets. I understand the burden high gas prices are placing on all Americans and I want you to know I will continue my efforts to provide relief for consumers at the gas pump.

I have been active in congressional efforts address this problem of gas prices in several ways. In the 110th Congress, for example, I supported legislation to temporarily stop filling the Strategic Petroleum Reserve. This legislation, which President Bush signed into law, will increase the supply of oil available to US markets and help drive down prices. Additionally, I have cosponsored or supported several pieces of legislation granting the Commodity Futures Trading Commission (CFTC) more authority to oversee speculative trading of oil, gasoline, and other energy commodities. The first piece closed a loophole created by Enron and other energy traders in 2000 to exempt electronic trading platforms from CFTC regulation. I am also presently working with my Finance Committee colleague, Senator Charles Grassley, to rewrite tax laws and remove incentives for financial investors to speculate in oil and gas trading and drive up prices at the pump.

In the longer term, America must reduce our dependence on oil by enacting higher vehicular fuel economy standards and by developing alternative forms of energy. To this end, I was proud to support energy legislation in 2007 that raised fuel economy standards for the first time in a generation. This landmark legislation will increase fuel economy standards to 35 miles per gallon by 2020 for cars and light trucks. Though I continue to advocate for more rigorous standards, this bill is a critical step and will make a real difference in American gasoline consumption. As a member of the Senate Energy and Natural Resources Committee, please rest assured that I will continue to look for innovative ways to lowering costs at the pump while producing more and cleaner energy domestically. As I do so, I will keep your views in mind.

Again, thank you for keeping me apprised of your interest in this issue. If I may be of further assistance in the future, please do not hesitate to contact me.

It is always good to see that our representatives will, at the very least reply to us, but you will notice that Senator Wyden failed to speak to the central premise of my inquiry. At no point did he address the fact that oil prices don't seem to corrolate to gas prices.

Senator Wyden, I contend that the "deliberate manipulation" is occurring at the American gas pump and not only on the international oil market. I used to work in an office building that overlooked a gas station. I've watched gasoline prices change on an hour by hour basis at that gas station. No fuel truck came to fill the in-ground gas tanks. So the service station owner did not experience any change in costs. Therefore, if the gas station operator paid a certain price for that gas stored in those underground tanks what makes it suddenly worth more? Senator Wyden I ask that you press for real hearings into the gouging of the American consumer by the oil companies. I ask that you do it now and do it relentlessly until those companies understand that we the people will no longer be oppressed at the pump.

We are pissed off and just not going to take it any more!

First Steps

I have taken the first steps. I have e-mailed all of my congresspersons the following e-mail:

Yesterday oil prices declined to $92 per barrel. A little research has indicated that the last time the oil price was that low the average price per gallon of regular gasoline nationwide was $2.699. Gasoline prices now are far higher than that.

Now to the meat of my question, this fact alone indicates that the oil companies are engaging in price gouging. For some reason when the price of oil goes up, the price of gasoline rapidly goes up but when the price of oil descends, it is never matched by a matched decrease in gasoline prices. Will you insist that the oil companies be legally pursued for these unfair, predatory and inequitable business practices?

We will see how and if they respond. If they do respond, I will post their responses here. Now it is your turn. I need you to send a similar message to your congress-persons. If we make enough noise, perhaps they will stop ignoring us.