ANNAPOLIS - Yesterday, Maryland Governor Martin O'Malley joined with Governors from 21 other states to call for an investigation into escalating gasoline prices throughout the United States. Together, they signed and submitted a letter to the Senate and House of Representative leadership asking them to study the perennially high price of gasoline.
"It is difficult to understand how oil companies can be making record profits each quarter without making capital investments in refineries that would address refinery issues," wrote the Governors. "Families and businesses across the nation are straining under these uncontrollable prices."
The letter was directed to the Sen. Harry Reid - Senate Majority Leader, Sen. Mitch McConnell - Senate Minority Leader, Speaker Nancy Pelosi - Speaker of the House, and John Boehner - House Minority Leader.
The text of the letter is reprinted below:
Dear Senator Reid, Senator McConnell, Speaker Pelosi and Representative Boehner:
We are writing to request that the U.S. Congress initiate a bi-partisan inquiry into escalating gas prices in the United States. We are particularly concerned about recent spikes that have seen prices soar in every state across the country.
The reasons for these massive increases do not appear to be tied to any recent changes in geo-political events or a weather crisis. While there have been reports regarding problems with refinery capability, even this explanation raises more questions than answers. Reliability, capacity and supply issues have been at the forefront of federal energy policy for years. It is difficult to understand how oil companies can be making record profits each quarter without making capital investments in refineries that would address reliability issues.
Families and businesses across the nation are straining under these uncontrollable prices. The economies of our states — as well as the national economy — are likely to suffer because of these continually spiraling prices. We are all affected by rising gas prices and it is not yet Memorial Day, the traditional start of the summer driving season. Many industry-based and other observers are predicting that gas prices may hit $4 a gallon by late summer.
We believe Congress has the authority and the unique ability to conduct a thorough investigation into gas pricing. This is not a simple “supply and demand” issue because gasoline is not a simple commodity. It is a basic necessity. With specific regard to the refinery issue, legislative or regulatory remedies may need to be explored. It is our hope that Congress can help obtain and provide answers to the circumstances and issues pertaining to these unexplained price escalations.
We are writing to request that the U.S. Congress initiate a bi-partisan inquiry into escalating gas prices in the United States. We are particularly concerned about recent spikes that have seen prices soar in every state across the country.
The reasons for these massive increases do not appear to be tied to any recent changes in geo-political events or a weather crisis. While there have been reports regarding problems with refinery capability, even this explanation raises more questions than answers. Reliability, capacity and supply issues have been at the forefront of federal energy policy for years. It is difficult to understand how oil companies can be making record profits each quarter without making capital investments in refineries that would address reliability issues.
Families and businesses across the nation are straining under these uncontrollable prices. The economies of our states — as well as the national economy — are likely to suffer because of these continually spiraling prices. We are all affected by rising gas prices and it is not yet Memorial Day, the traditional start of the summer driving season. Many industry-based and other observers are predicting that gas prices may hit $4 a gallon by late summer.
We believe Congress has the authority and the unique ability to conduct a thorough investigation into gas pricing. This is not a simple “supply and demand” issue because gasoline is not a simple commodity. It is a basic necessity. With specific regard to the refinery issue, legislative or regulatory remedies may need to be explored. It is our hope that Congress can help obtain and provide answers to the circumstances and issues pertaining to these unexplained price escalations.