Weekly Political Roundup — Gas Prices Rise, Senate Panel Rises to Occasion
Posted June 19, 2009 at 8:47 am 
Filed in: Leading the energy debate this week were 2 developments, an unfortunate milestone for gas prices, as well as the fortunate Senate Energy and Natural Resources Committee approval of a serious energy bill. Gas prices have been on the rise for 50 consecutive days — and after last summer’s historically high oil and gas prices, the bar was set sky-high in terms of future shock value – but this big, round number still managed to raise some eyebrows. CNNMoney.com (http://money.cnn.com/2009/06/17/news/economy/gas_prices/) reported:
“Gas prices have risen for 50 days in a row and the pain at the pump is taking a toll on household budgets across the nation. Nationwide, gas prices now average $2.679, motorist group AAA said Wednesday. Prices have risen every day since April 29, when the national average stood at $2.05 a gallon. Drivers in every U.S. state, with the exception of South Carolina, now pay an average of at least $2.50 a gallon. In the Palmetto State, gas averages $2.49 a gallon. The runup in gas prices comes at a time when drivers are already struggling with record high unemployment and an abysmal housing market.”
“The spike in gas prices comes on the back of a surge in the price of crude oil, which is the main ingredient in retail gasoline. The price of oil has more than doubled since late December, climbing from a low of $33.87 a barrel to more than $70 recently. Meanwhile, gas prices have followed a similar trajectory, jumping more than $1 a gallon over the same time period. Oil prices have been driven higher as investors bet the world’s once-robust demand for energy is poised for a rebound. However, many analysts say the recent runup is overdone, and that oil prices at current levels are not justified based on sound economic fundamentals.”
In other news, thanks to the tireless efforts of Sen. Byron Dorgan (D-ND), who shares SAFE’s vision for the path toward energy security, a key Senate panel approved impactful energy legislation. Dorgan was masterful in pressing for expansion of domestic exploration for oil and natural gas, as well as the transition toward an electrified transportation fleet. Greenwire’s (http://www.nytimes.com/gwire/2009/06/17/17greenwire-senate-committee-approves-broad-energy-package-9861.html?pagewanted=print) Ben Geman has the story:
“The Senate Energy and Natural Resources Committee voted 15-8 to approve a sweeping energy bill today after months of work, sending the measure to the Senate floor, where many are vowing to make changes.”
“Chairman Jeff Bingaman (D-N.M.) called the bill a compromise that moves federal energy policy forward. ‘None of us approve of every provision, none of us got everything that we wanted,’ Bingaman said. ‘The end product, I believe, is a solid piece of work. It is one which will help not only to enable us to produce new sources of energy, but to use our energy sources wisely and more efficiently.’ The bill’s major provisions would, among other things, impose a national renewable electricity standard, overhaul federal financing for ‘clean energy’ projects, establish a suite of efficiency measures, mandate new federal electricity-transmission siting power, and allow wider oil and gas leasing in the eastern Gulf of Mexico.”
“Across the Capitol, House Democratic leaders plan to bring their combined energy and climate package to the floor in the coming weeks. It includes a nationwide cap-and-trade system to cut greenhouse gas emissions, along with a renewable power mandate and a suite of other energy measures. Senate Majority Leader Harry Reid (D-Nev.) has said he hopes to bring a combined energy and climate bill to the floor this fall, and Environment and Public Works Chairwoman Barbara Boxer (D-Calif.) says she wants to mark up the climate portions in her committee before lawmakers leave for the monthlong August recess. But a cap-and-trade plan faces significant Senate obstacles, and some lawmakers have called for considering the Senate Energy Committee’s package separately.”
“The committee also approved Sen. Byron Dorgan’s (D-N.D.) amendment aimed at helping deploy the recharging infrastructure that would be needed for widespread use of plug-in electric vehicles, which are seen as a promising way of reducing oil use in the transportation sector.”
This was a hard-earned victory, yet the bill faces major hurdles ahead on the Senate floor. Perhaps rising energy prices will serve to boost the political urgency of passage, yet perhaps America’s capacity for shock at the pump was spoiled by last year’s price shock.
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