|
Green Bay, WI-- Congressman Steve Kagen, M.D. is striving in both Northeast Wisconsin and Washington, D.C. to enact common sense solutions to rising gas prices. Kagen brought together community and industry leaders today to talk about the crippling effects of the price of gas and some plans for relief. Joining the Congressman were Michael Koel, Vice President of Supply & Trading for the Petroleum Operations Division of U.S. Oil Co., Inc. and Harold Grimes, Owner of Grimes Trucking.
“I am working hard to find a way forward. Together we will begin to ease prices and end our addiction to foreign sources of oil,” said Kagen. Drilling for new oil, investing in renewable energy and conservation will work in the long term, but in the short term we must prevent manipulation of oil supplies and prices.”
Congressman Kagen has been listening to the comments and concerns from families in Wisconsin and local business owners in the energy industry and he outlined his thoughts on how we can provide relief from rising gas prices at today’s meeting.
1. Drill for new oil here in America. We must increase domestic energy supplies, and yet oil companies are drilling on only 12 of the 68 million acres the government leased to them, even though over 100 billion barrels of oil lie beneath these lands. American oil companies should be encouraged to drill for new oil or turn these valuable rights over to someone else who will. Simply put, they should use it or lose it.
2. Invest in every source of renewable energy while promoting energy conservation and efficiency.
3. Prevent manipulation of oil prices in our free markets. It takes years to explore, drill, refine and deliver the fuel we need. But we need lower prices now – not next year. Recently, sworn testimony during congressional hearings indicated that oil price manipulation is real, and that by designing more effective oversight in the oil markets, prices for gasoline could drop by $2.00 per gallon.
“U.S. Oil faces many difficulties today. We don’t have the money it takes to fill up tanks at these prices. We have over doubled our credit line at the bank,” said Michael Koel, Vice President at U.S. Oil Co., Inc. “We fully support Congressman Kagen. We believe in drilling for new oil and conservation. Renewable fuels are also very important."
Harold Grimes, Owner of Grimes Trucking said, “We haul food for all of the Midwest. As a small business, our fuel bills have gone up over 40% since January. Our costs are escalating not daily, but hourly. This is not a problem that just jumped at us. This problem has been with us since 1973. I do not blame Congressman Kagen.”
Last week, Kagen voted for two pieces of legislation and cosponsored another to lower prices at the pump. Kagen voted for the Responsible Federal Oil and Gas Lease Act, also known as “use it or lose it”, which would bar companies from obtaining any additional federal leases for drilling unless they are producing oil and gas from the leases they already hold or are about to do so. Kagen also voted for the Energy Markets Emergency Act, which would direct the Commodities Future Trading Commission to investigate conditions in energy futures markets to eliminate excessive speculation and price distortions. Kagen co-sponsored the Consumer Oil Price Protection Act, which would prevent excessive speculation in oil markets by limiting participation to those who are actually are able to produce, manufacture or take possession of the oil they buy. This measure is expected to come up a vote in July.
“These rising prices need to stop. We need to find a way to at least put the brakes on it so we can learn to cope with prices as they are now. I am glad Congressman Kagen is doing what he can to make that possible,” said Mark Skogen, President and Owner of Festival Foods. “We are seeing that fuel costs are affecting food costs. Unfortunately in some cases the increased prices from the manufacturers and distributors are being passed on to consumers. I manage a staff of 50 who travel to our stores to insure quality and supervise our programs and I am worried that if I cut back on their travel our quality will suffer.
|