Bingaman on Gasoline, Oil Price Outlook
May 15, 2007
01:24 PM
“Thank you all for joining us today to discuss the outlook for gasoline and oil prices, supply and demand for this summer’s driving season.
“I have called this hearing because I am concerned, as I believe my fellow Committee Members are concerned, that gasoline prices are at historic highs. Yesterday the Energy Information Administration posted the highest ever price for gasoline, at a nationwide average of $3.10 per gallon. This is the third summer in a row that we are having this discussion about why prices are at record levels.
“We are pleased to have before us a panel of experts who we expect to explain to us how we find ourselves at this point yet again, and what we should expect for the remainder of the summer.
“The U.S. economy remains vulnerable to oil and gasoline supply disruptions, and associated price increases. This Committee is working to address this vulnerability by reporting the Energy Savings Act, which will reduce our oil dependence by increasing our use of homegrown biofuels. As we diversify our transportation fuels, we will become less vulnerable to oil prices.
“I note that our discussions today will focus on the market fundamentals of supply and demand, and on the state of the U.S. and global refining industry. Other very important aspects of this topic, such as gasoline pricing and potential price gouging, will be discussed in the Commerce Committee, which has jurisdiction over such issues. We will focus on topics that are under the jurisdiction of this Committee, including Saudi Arabian oil production levels, recurring geopolitical problems in important producing countries like Nigeria, higher than expected demand for oil and oil products, and recurring refinery problems. All these factors have worked together to make oil and gasoline prices uncomfortably high.
“I thank our panel of experts for their participation today. It is always a pleasure to welcome Guy Caruso, Administrator of the Energy Information Administration. We look forward to hearing from Mr. Kevin Lindemer, who leads the energy analysis of Global Insight. We are also pleased to have with us Mr. Paul Sankey, who heads up Deutsche Bank’s oil research. Finally, we are happy to have Triple A, who can speak on behalf of our nation’s oil and gasoline consumers.”
# # #
