Gas Price Woes; Wicker to the Rescue?

by Matthew Caston
July 1, 2008

Summer time usually means a road trip with the family, but this year summer is just four hot months.  The reason, as we all know, is the exceptionally high gas prices.  The people’s answer to high gas prices is an organization founded by Dustin Coupal and Jason Toews called Gas-Buddy Organization.  The organization has made it its mission to provide a real-time gas price forum that consumers can access to find the least expensive gas in their community.  The Web site boasts that it is proven, tested, and guaranteedӔ to save consumers 19 percent or more at the pumps.  According to gasbuddy.com, the national average for gas in the U.S. currently is $4.10.  The site also offers a map of the U.S. that can be used to pinpoint the exact location of the cheapest gas in their community.  The cheapest gas around Jackson can be found at Raceway on 4615 Clinton Blvd at $3.75 a gallon for regular unleaded gas.

Gasbuddy isn’t enough; with gas prices still on the rise we need a permanent solution.  In comes Mississippi Republican Sen. Roger Wicker with his Gas Price Reduction Act.  The legislation, introduced June 26, is an effort by Senate Republicans to reach out to their Democratic colleaguesӔ and has so far has 42 co-sponsors according to a press release issued June 26.  Its goal is to lower gas prices and reduce our dependence on foreign oil. Wicker said his legislation takes “a multi-pronged approach to quelling gas prices and foreign dependency.  The legislation covers everything from lifting the moratorium on oil shale development in the west (oil shale is a rock that contains large amounts of kerogen that contains hydrocarbons which can be extracted and developed into a usable fule. It may cost a little more to process but oil shale will deffinately rid us of foreign oil) and to expanding research for alternative energy vehicles. 

The legislation sounds pretty good, but Title I reads, ԓ DEEP SEA EXPLORATION IN THE OUTER CONTINENTAL SHELF (OCS).  According to the legislation, exploration of the outer continental shelf would make 14 billion barrels of oil in the Atlantic and Pacific oceans available for production.  The legislation goes on to say that the 14 billion barrels are ԓmore than all U.S. imports from the Persian Gulf countries over the last 15 years.  The legislation also addresses the distribution of funds stating that 50 percent would go to the Federal Treasury, 37.5 percent to states and 12.5 percent to the Land and Water Conservation Fund.

Tilte II focuses on Utah, Colorado, and Wyoming, saying that together they have ԓmore than three times the oil reserves of Saudi Arabia.  According to the legislation there are 800 billion to 2 trillion potentially recoverable barrels of oil in these three states.

Title III, the least detailed of the four, reads:
* We need better batteries to maximize electricity range & use less gas

* Increased R&D for advanced batteries

* Direct Loans for advanced battery manufacturing facilities

* Sense of Senate that the Federal Government should increase its purchases of these vehicles

What in the world is ԓR&D?
Title IV focuses on the Commodity Futures Trading Commission or CFTC.  The CFTC is an independent organization that has been mandated to regulate commodity futures and option markets in the United States.  Under Title IV of the Gas Price Reduction Act the CFTC will receive increased funding and staff.  It also requires the CFTC to gather information on index traders and swap dealers.  Title IV also directs the President’s Work Group on Financial Markets to study the international regulation of commodities markets.

More:

http://www.gasbuddy.com/

http://www.cftc.gov/