Calls for Action to Address Rising Gas Prices and Big Oil Profits 

May 02, 2007

"…everyone is being squeezed." – Rep. Gillibrand

Hudson, N.Y. –  As a new member of Congress, Representative Kirsten Gillibrand has called for real action to address increasing gas prices and continued record profits from the Oil and Gas industry.

In addition, Rep. Gillibrand has called for and supports the investigation by Congress into antitrust behavior by the oil industry, particularly anticompetitive practices by the refining sector.

Rep. Gillibrand is also a cosponsor of the Fuel Economy Reform Act. This bill calls for increases in fuel efficiency standards for automobiles from 27.5 mpg to 35 mpg by 2018. "There hasn’t been an increase in fuel economy standards in almost 20 years. That is unacceptable. Our economic and national security depends on America becoming energy independent in the near future." Gillibrand continued, "Higher fuel efficiency standards will help reduce the costs for consumers and businesses."

Rep. Gillibrand is currently working on the next Farm Bill and pushing increased research funding in biofuels. "New York has the resources to be a leader in clean, alternative energy. I am working with my colleagues in the Agriculture Committee to increase funding in the research and development of these biofuels, which will help reduce our dependence on foreign oil, address concerns about carbon emissions, and give our farmers a share in our energy future."

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"There is not a single person in our community who is isn’t affected by the rise in gas prices," said Gillibrand, a member of the Armed Services and Agriculture Committees. "From parents driving their kids to school, to small businesses delivering their products to stores, to our farmers trucking their milk and produce to market - everyone is being squeezed."

Current gas prices in the Capital District have reached $3.09 per gallon of regular unleaded (AAA Fuel Gauge, 5/18/07). In New York State, the average gallon of regular unleaded has risen 118% from $1.43 in January, 2001 to $3.12 in May, 2007.

Gillibrand added, "The prices keep going up, as do the record profits of the oil executives." In 2002 the major oil companies; BP, ExxonMobil, Shell, Chevron, Conoco showed $34.2 billion dollars in profits. Those numbers have increased exponentially with 2006 profits reaching $124.9 billion dollars.

To address these major profits, Congresswoman Gillibrand was an original cosponsor of the CLEAN Energy Reform Act, which rolled back $14 billion dollars in tax credits for the oil and gas companies and invests the funds in research and development of clean, alternative energy.

Rep. Gillibrand has co-sponsored the Federal Price Gouging Prevention Act saying, "With summer around the corner we need to provide immediate relief to consumers by providing the Federal Trade Commission the authority to investigate and punish anyone who artificially inflates the price of gas."

The penalties received from price gougers would be directed toward the Low-Income Home Energy Assistance Program (LIHEAP), which subsidizes high energy costs and for weatherization programs for low-income houses.