Michael Michaud
Cooperation is Required to Address the Energy Crisis
By Representative Mike Michaud
Apr 17, 2008 - 10:43:17 AM

Rep. Michael Michaud represents Maine's 2nd District in the United States Congress.

The bleak news about the economy continues to mount and many of our neighbors are feeling the negative impacts. Many Mainers were unnecessarily cold this winter because of high heating fuel costs.  And many small business owners, especially trucking businesses, are seeing their bottom lines hit hard by high gas and diesel prices. In fact, many are going out of business because of it.

In December, Congress passed and the President signed into law the Energy Independence and Security Act, which will make America more energy independent, respond to the global warming crisis, grow our economy, and lower energy costs. The new law also prohibits oil companies from engaging in market manipulation or providing false information about price in the wholesale petroleum markets by imposing new civil penalties for those who break these rules.

But while passing this bill was certainly a step in the right direction, and something that I strongly supported, many of the new law’s policy adjustments will not be felt immediately - some of the major provisions require incremental change over a number of years, such as fuel economy, building and appliance efficiency standards. And while it is estimated that American families and businesses will save hundreds of billions of dollars over the next 10 to 30 years because of the bill, many of these gains are already being offset by today’s skyrocketing prices and other economic factors in our current downturn.

We can’t wait for this crisis to get worse - we need to act now. The economic effects of the price of fuel cannot be overlooked. Just consider for a moment what is happening:

• Families are paying an all-time record high of $3.39 a gallon on average for regular gasoline - more than double the cost in 2001, and up 51 cents from a year ago.
• Crude oil has topped the record all-time high at $115 per barrel.
• The Big Five oil companies reported record profits in 2007. Exxon Mobil made $40 billion - the largest corporate profit in American history.
• U.S. dependence on foreign oil is at historic levels, with the United States importing 590,000 barrels per day from Saudi Arabia and other OPEC countries, and OPEC accounting for more than one-half of U.S. imports of crude oil.

I know that Mainers are struggling everyday to make ends meet. It is long past time that something is done.

In the face of record prices at the pump, Congress has begun a series of hearings to investigate rising gas prices. Right now, committees throughout Congress are focusing on the burdens on American families and small businesses, looking at how speculation in financial energy markets is contributing to the high price of oil, exploring anti-competitive practices in the oil and gasoline industry, and proposing solutions.

But holding hearings and willing it to happen is far from enough. For starters, the Administration needs to get serious and start cooperating with Congress. We need to work together to pass the much needed reforms that will get this country’s energy policy moving in the right direction. Unfortunately, even though Congress has passed a number of positive, bipartisan measures, the Administration threatens vetoes rather than negotiating solutions - preventing the necessary progress needed to begin to address our fuel crisis.

For example, last month, the House passed legislation to redirect taxpayer subsidies from oil companies already earning record profits to clean renewable energy. The President opposes this plan, working to protect taxpayer subsidies for big oil companies over promoting American energy independence.

Last spring, Congress voted to help stop OPEC from cheating consumers at the pump by authorizing the Justice Department to take legal action against OPEC state-controlled entities that conspire to limit the supply, or fix the price, of oil. This bipartisan bill passed in both the House and Senate, but the Bush Administration has threatened to veto this measure. The President has also threatened to veto a bill that the House and Senate passed that would crack down on price gouging by big oil companies.

American families and businesses are paying a heavy price for the Administration’s unwillingness to act. I am tired of this lack of action and urge the President to work with Congress rather than impeded progress on bills that could help address our energy crisis. Families in Maine and throughout our country can’t afford inaction.