DPC REPORTS
FACT SHEET | May 9, 2007
Senate Democrats Work to Protect Consumers and Move Toward Energy Independence
As the price of gasoline
passed $3 per gallon this week, Senate Democrats continued to push for policies
that protect consumers in the short run and move
- Requiring reductions in greenhouse gas emissions;
- Diversifying and expanding our use of secure,
efficient, and environmentally friendly energy supplies and technologies;
- Repealing tax giveaways to big energy companies;
- Reducing the burdens on consumers of rising
energy prices; and
- Preventing energy price
gouging, profiteering and market manipulation.
Gasoline prices have passed $3 and are expected to remain high all summer. The summer driving season does not officially begin until Memorial Day weekend, but gasoline prices have already climbed to record levels. The average price nationwide for a gallon of regular gasoline was $3.05 on May 7, 2007, and the average price for the summer is predicted to be $2.95. Gasoline prices in 21 states broke record highs on Monday, May 7. Transportation costs this year are estimated to be more than double the cost in 2001. (Energy Information Administration, Weekly Retail Gasoline Prices and Short Term Energy Outlook; AAA Fuel Gauge Report; EIA, Household Vehicles Energy Use: Latest Data and Trends)
Refineries are running well below full capacity, while refiners reap
profits. Just this week, the Los
Angeles Times reported that gasoline supplies are very low for this time of
year and three major refineries are operating at only 50 percent of
capacity. Refining capacity in the third week of April was 87.8 percent,
compared with an average of above 90 percent in the same period between 1994
and 2005, according to the Energy Information Administration. The supply
crunch created by reduced refinery capacity is contributing to sky-high
gasoline prices. At the same time, refiners are making huge
profits. Refining profits in the first quarter of 2007 increased 36
percent over last year, and the
Oil companies have racked up huge profits and not invested them in
alternatives. The five largest
oil companies reported almost $120 billion in profits in 2006 alone. From
2000 through 2005, they reported over $383 billion in profits. But
according to its own trade association, the American Petroleum Institute, the
Senate Democrats are
working to protect consumers from price gouging and move