Senate leadership on both sides pushes energy for gas price relief

The overwhelming topic at today’s stakeout was energy legislation. The Senate Republican Conference after leaving their weekly policy lunch was very clear about their message: increase supply. They explained through Senate Energy Committee Ranking Member Sen. Pete Domenici (R-MN) a five point plan to reduce crude oil prices by increasing supply. The Republican legislation calls for 2,000 acres of Alaskan plain know as ANWR to be opened for drilling, remove the moratorium on off-shore natural gas drilling and reward the states that abut offshore drilling coasts for doing so, to utilize and stop filling the strategic oil reserve, dedicate money to construct more refineries, and to borrow technology from South Africa to substitute liquid coal for oil. Senator John Ensign (R-NV) said that a principal problem with the price of oil is speculation in the futures market. He said that a strong commitment by the Congress in future investment in building America’s supply would stop speculation and immediately bring oil prices down.

The Republican statements were immediately followed by statements form the Senate Democratic leadership on their energy proposals. The Democrats began with Energy Committee Chairman Sen. Jeff Bingaman (D-NM) who explained the Democratic legislation. He said that they too have provision in the bill to stop filling the strategic oil reserve as well as anti-price gouging provisions. Sen. Schumer (D-NY) said that their bill reevaluates the windfall profits tax on “Big Oil” reestablishing the definition of “windfall” and taxing those profits at 25 percent. Sen. Byron Dorgan (D-ND) said that the Democratic legislation also attempts to regulate margins in the futures market as a solution to the “orgy of speculation” over oil prices. Majority leader Reid said that they are going to “try and take a whack” at “Big Oil” in their bill.