HIGH GAS PRICES HURT AMERICAN FAMILIES

RECORD GAS PRICES HURT FAMILIES IN COLORADO, BUT REPUBLICANS REFUSE TO TAKE ACTION TO LOWER GAS PRICES

This weekend kicks off the summer driving season. As gas prices continue to surge, families will see the second consecutive summer with record high gasoline prices, paying more than ever before at the pump. But instead of taking strong action to bring down gas prices, Bush and Republicans in Congress are scrambling to use the crisis to push through an energy bill that is nothing more than a special interest smorgasbord that actually increases gas prices and hurts the environment. While Democrats are fighting to lower gas prices, the Republicans' revolving door of lobbyists has blocked reform that would lower gas prices. It's becoming increasingly clear: America can't afford to have Republicans in power anymore.

COLORADO FAMILIES PAY MORE AT THE PUMP

Gasoline prices rose by 15 cents for families in Colorado over the past year. Each one cent increase in gas prices costs consumers nationwide $1 billion each year. This year, the week before Memorial Day the average price of a gallon of regular gas in Colorado was $2.16. This is an increase of 15 cents since May 2004 - a 7.3% increase in just one year. [http://www.fuelgaugereport.com/sbsavg.asp; Reuters, 3/30/04]

Increased gasoline prices will cost drivers in Colorado $633 million over the next six months. The increase in gasoline prices will have a significant impact on Colorado's local economy, reducing families' discretionary income and contributing to inflation in the price of consumer goods. [Energy Information Administration, 5/05; Federal Highway Administration, 11/04; Multiplied by 4% Increase in Usage]

Average two car families in Colorado will pay an average of $425 more over the next six months because of rising gasoline prices. Families in Colorado are expected to pay $425 more for gasoline in the spring and summer than they did over the same time period in 2003. [Energy Information Administration, 5/05; Federal Highway Administration, 11/04, 10/04; Multiplied by 4% Increase in Usage]

REPUBLICANS PUSH ENERGY BILL THAT INCREASES GAS PRICES

Former Tom DeLay Aide Admits Energy Bill Will Not Solve Gas Price Problem; Only Gives Appearance of Doing Something. According to the Los Angeles Times, "Politically, it doesn't matter if such provisions deal with the long term, said Stuart Roy, Republican strategist and former aide to House Majority Leader Tom DeLay. 'The most important thing for policy makers in the current environment of relatively high gas prices and the approaching summer travel months is action.'" [LA Times, 4/16/05]

In Fact, Bush's Own Energy Information Administration Found the Bush Plan Pushes Prices Higher. A February 2004 analysis by the Energy Information Administration of the 2003 compromise energy bill - nearly identical to the current bill - found that the bill would increase gas prices by three cents a gallon. Each one cent increase in gas prices costs consumers nationwide $1 billion each year. [EIA, Summary Impacts of Modeled Provisions of the 2003 Conference Energy Bill, 2/2004; Reuters, 3/30/04]

But Reps. Marilyn Musgrave and Bob Beauprez, together with Senators Allard and Campbell, supported it anyway. Representative Marilyn Musgrave and Bob Beauprez voted in favor of the Bush energy bill, and Senators Allard and Campbell fought hard to bring it to the Senate floor for a vote. Instead of setting America on a path to energy security, this bill would reward polluting energy companies with billions in subsidies that actually drive gas prices higher. [Roll Call Vote #456, 11/21/03; H.R. 6 Final Passage Roll Call # 132, 4/20/05; EIA, 2004]

Reps. Marilyn Musgrave and Bob Beauprez Voted Against Provisions that Would Have Reduced Gas Prices and Protected the Environment. Marilyn Musgrave and Bob Beauprez voted against alternative that would have resulted in better energy policy and lower gas prices. In particular, they voted against measures to open the Strategic Petroleum Reserve, reduce oil demand in the U.S., eliminate special interest subsidies and reinvest funds in clean technology, prohibit drilling in the Arctic National Wildlife Refuge , investigate electricity market fraud, invest in renewable fuels, and ensure that liquefied natural gas facilities do not threaten public safety. [H.R. 6 Roll Call # 116, 117, 118, 122, 123, 125, 131, 4/20/05]

RECORD PRICES LEAD TO RECORD PROFITS FOR BIG OIL

Oil Companies Experienced Record $100 Billion in Profits During 2004. According to the New York Times, "Even though the market value of target companies are near their record highs, that is matched by record profits and cash on hand at big oil companies. With crude oil averaging $41 a barrel in 2004, the world's top 10 oil companies made more than $100 billion in profit [in 2004]. The boom is expected to grow this year. Oil futures on the New York Mercantile Exchange set a new record [on April 4], rising above $58 a barrel for the first time." [NYT, 4/5/05]

Big Oil Companies Have Experienced Record Profits of Nearly $34 Billion Since Bush Took Office. The higher overall gasoline prices have cost the American consumer a net of over $25 billion during Bush's first term in office. This money has gone directly from consumers pocketbooks into the hands of oil companies and oil producers, including OPEC. The big three oil companies in America have profited $33.6 billion over the past three years alone. [EIA Monthly Energy Review; ExxonMobil, ChevronTexaco and ConocoPhillips Company Financial Reports]

2004 Profits for ExxonMobil, ChevronTexaco, and ConocoPhillips Broke Records Across All Industries-Not Just the Oil Industry. According to the Washington Post, "Oil companies reported record profits last year-and not just records for oil companies. Royal Dutch Shell earned $18.54 billion, while BP lagged behind with a net income of $15.73 billion, a company best. ExxonMobil broke the U.S. record by reporting a 2004 profit of $25.33 billion, taking the title away from Ford. ConocoPhillips's profit for the year rose 72 percent, while ChevronTexaco's grew 84 percent." Exxon's 2004 revenues were a company record: $298.03 billion. In February, Exxon surpassed General Electric Co. to become the largest U.S. corporation by stock market value. [Washington Post, 2/13/05; Associated Press, 4/13/05]

DEMOCRATS HAVE A PLAN TO LOWER GAS PRICES

Bush Should Immediately Release Oil from America's Strategic Petroleum Reserve. To lower gas prices, Bush should release oil from America's Strategic Petroleum Reserve (SPR) to help provide immediate relief for consumers. SPR releases have been used in the past-as recently as 2000-to help stabilize oil prices, and it will be necessary at times to release oil from the reserve to help take the burden off consumers.

Bush Should Work With OPEC to Expand the Oil Supply. Bush must work with Organization of Petroleum Exporting Countries-particularly Saudi Arabia-to expand the global supply of oil.

The FTC Should Investigate Any Possible Market Manipulation. Oil companies are experiencing record profits even as gas prices continue to rise. It is essential that the Federal Trade Commission vigorously investigate the sharp rises in gas prices the past three years for any possible market manipulation. So far, the FTC has refused to launch a formal investigation into this matter.