To: Road Walker who wrote (102635 ) 10/4/2011 2:23:41 PM From: tejek Respond to I wrote my congresspeople about how gas was out of whack in WA state given what's happened to the price of crude. Cantwell's response is disturbing to the say the least. Either they don't really know what the problem is.....they know its speculation but beyond that they are apparently unable to stop it.........or they don't want to know thanks to the lobbyists. Thank you for contacting me with your concerns about gas prices and speculation in the oil markets. I appreciate hearing from you on this important matter, and sincerely regret the delayed response. As you know, high gas prices have been hurting small businesses, families, and the economic recovery throughout the country. Since Memorial Day 2010, the price of gas has risen 93 cents in Washington State; this means that Washington State drivers will pay $672 million more for gas from Memorial Day to Labor Day 2011, compared to last year. This increase has not only hit the pocketbooks of families and businesses, but has forced many Washingtonians to make lifestyle changes -- including cutting back on deserved vacation travel this summer. Americans continue to be affected by the struggling economy and job market, and deserve to know the source of the rapid increase in gas prices. Energy market experts, oil company executives, and major industrial energy consumers have testified to Congress that the price of oil and gas can no longer be explained or predicted by normal market dynamics or their historic understanding of supply and demand market fundamentals. Numerous experts have concluded that unprecedented jumps in crude oil prices are due in large part to rampant speculation in the energy commodities markets. When I had the opportunity to question Exxon Mobile Chairman and Chief Executive Officer Rex Tillerson at a Senate Finance Committee hearing in May, Mr. Tillerson testified that if oil were based on supply and demand fundamentals, oil should cost between $60 and $70 per barrel. According to the Energy Information Administration, the last time crude oil prices were stable in the $60-$70 range was between June and August of 2009 and the national average price of regular gasoline was $2.50 to $2.70. Therefore, if today's oil markets were based on supply and demand fundamentals, drivers would be paying about a dollar-and-a-half less per gallon, or around $20 less each time they fill up their gas tanks. The lack of substantive and clear answers as to why extreme volatility exists in the oil market clearly displays the need for further action from the entities charged with policing the energy market. Fortunately, we have already taken an important step towards preventing energy price manipulation. The landmark 2007 Energy Bill included language I authored giving the Federal Trade Commission (FTC) new authority to prosecute and impose fines of up to $1 million per day on anyone who uses a "manipulative or deceptive device or contrivance" to distort the crude oil, gasoline, or petroleum distillate markets. In March 2011, I sent a letter urging the FTC to be more proactive and aggressive in enforcing its market manipulation rule. The need to address the lack of oversight and ensure Americans begin to feel relief at the pump is needed now more than ever. I recognize that Washingtonians have already been affected and continue to feel the strain of unstable gas prices. Please be assured I will keep your thoughts in mind as I continue my work in the Senate to bring down the price of gas. Thank you again for contacting me to share your thoughts on this matter. You may also be interested in signing up for periodic updates for Washington State residents. If you are interested in subscribing to this update, please visit my website at http://cantwell.senate.gov . Please do not hesitate to contact me in the future if I can be of further assistance. Sincerely,
