Washington, D.C. – Senate Energy & Natural Resources Chairman Pete V. Domenici and his committee colleagues today heard testimony from government, industry and consumer groups regarding gasoline prices and factors contributing to current high prices such as global oil demand, constraints on refinery capacity, and speculation in the futures market.  The hearing also provided a status report on the effects inflicted by Hurricane Katrina on the oil and gasoline infrastructure. 

Chairman Domenici’s statement:

“Senator Bingaman and I announced this hearing two weeks before the hurricane.  Rising gasoline prices this year have been hurting consumers across the nation.  Hurricane Katrina exposed the harsh reality that we have been skating on thin ice when it comes to the concentration of energy infrastructure and production on the Gulf Coast. 

“The Senate owes it to the American people to address the challenge of spiraling gasoline prices and the contributing factors.  Our job is to make sure that price gouging, unfair speculation and unconscionable profiteering do not take place, and that they especially do not take place as a result of the Hurricane.

“On July 29th, 74 Senators came together to endorse the Energy Policy Act of 2005 because they knew that we need a road map for the energy future of our country.  I am very proud of the Energy Policy Act of 2005.  A number of good and important policy goals were achieved there, but some of the harder choices were not part of that bill.  I had to find a balance of ideas that achieved a political consensus to pass the bill.  No consensus would have meant no bill. 

The things that were not politically possible two months ago are still before us and require an answer.  We can either ignore them or we can act.  I say we act.

“Political obstacles cannot stop us from addressing the hard issues that will secure our energy infrastructure.  I believe there are several goals that can be accomplished with proper bipartisan discussion. Some goals we should address in the immediate future are:

•           Encouraging citizens to conserve,

•           Increasing CAFE standards,

•           Developing more domestic supplies like the Outer Continental Shelf,

•           Increasing Refinery Capacity, and

•           Eliminating the Proliferation of Boutique Fuels.

“Hurricane Katrina has reminded us that we cannot overlook these goals.  Some of these goals are hard steps to take. I realize that, but we must take them in order to curb the rising price of oil and gasoline.  I look forward to working with my Senate colleagues to address the energy challenges that continue to face our nation in this time of deep tragedy.”