Fox News Channel "Your World" - Transcript

Interview

MR. CAVUTO: Prices going up, oil executives getting grilled. It is becoming routine, but is it fair? Well, Senator Benjamin Cardin joins me right now. He sits on that Judiciary Committee which held the hearing today.

Senator, was the object of the hearing to bash those guys?

SEN. CARDIN: Well, no. I think the object of the hearing is to try to do something to deal with gasoline prices. People are hurting in this country. They can't afford to fill up their car with gasoline. So we want to do something to get something done to bring down the costs and in the long run to have an energy policy that makes us self-sufficient so we're not dependent upon foreign oil. But in the short term, the right questions are asked. These oil companies are making record profits. And yet they're doing virtually nothing to help the consumers in this country and our economy.

MR. CAVUTO: But the blame is on both sides, right, sir? I mean, the Senate and the House had opportunities to expand oil exploration here. And each and every time it's come up, you shot it down.

SEN. CARDIN: Well, Neil, I don't think we're going to be able to solve the problems by getting oil here in America. What we need to do is become energy independent. We need alternative and renewable sources. We need to put out incentives. You know, we give $17 billion a year in tax breaks to the oil industry. They have over $100 billion in profit, the largest companies. We should be using those incentives to help develop alternative and renewable energy sources.

MR. CAVUTO: No doubt, Senator. You're exactly right. They don't need incentives or tax breaks of any sort, nor does any industry for that matter. But I think, Senator, what surprises a lot of folks is that every time we've rejected oil exploration here, whether it was seven years ago, whether it was 15 years ago, whether it was almost 30 years ago, had we done it when we had the chance, we'd have at least that oil on hand. And now, you're quite right to say we should look at alternatives. But can't we throw it all into the mix? Shouldn't we look at everything, including more oil here?

SEN. CARDIN: Well, two problems. On the short term, you gotta bring these prices down. It's really hurting our economy, and people are suffering. In 1970, if we would have listened then to these long gasoline lines, we would have been energy independent today. We've got to become energy independent, and that means alternative and renewable sources. That means using our energy more wisely in America. If we drill today, we're not going to be energy independent.

MR. CAVUTO: Senator, that is my point. With all due respect, we said that back in the '70s. So you know, we're not going to get much more oil out of these locales. We've got to get energy independent. I'm saying throw it all into the mix, all these energy alternatives, more oil here. It just seems a little galling, Senator, when maybe you, maybe some of your colleagues are hitting OPEC for not increasing production but making it next to impossible for the oil guys to do it here.

SEN. CARDIN: Of course, OPEC is interested in their bottom line, and they're not going to help us out. We've got to take care of our own needs. We need to be independent of foreign energy sources. We're never going to do that through oil. We've got to do it through alternative fuels. It's not only an economic imperative, it's a security imperative.

MR. CAVUTO: Can't you do it all? Can you do it all, Senator? I think you can.

SEN. CARDIN: We can do it all. We can do it all.

MR. CAVUTO: So why not? So why not explore -- you're fine. Why not explore nuclear? Why not explore more oil here? Jump ball, have at it! Whatever sticks, go for it!

SEN. CARDIN: Well, you're going to get me to agree with you that we need to explore all options, and we need to become energy independent. But I am convinced that we're going to accomplish our goal of energy independence for security, environmental and economic reasons. Our best options are to tackle the alternative and renewable energy sources and to be smarter in the way that we use energy.

MR. CAVUTO: But you talked about immediate relief, Senator. And I commend you, but that's far down the road. In the meantime, these oil guys are dragged up like piñatas, maybe for very good reason. I'm just saying that does it achieve much, you know, rapping them a new one, as if magically the price of gas from ranting at them goes down?

SEN. CARDIN: Well, as you know, by trying to drill here, we're not going to bring oil prices down immediately. To bring prices down immediately, we need to take on the oil market speculators. That is causing oil prices to increase. We need to take on the collusion practices among the oil producers. We also need to take a look at whether we are using our incentives properly that could actually bring down costs today. There are ways that we can bring down costs today. But I'll tell you, it would be nice if we had the cooperation of the executives from the oil companies, if they were concerned about the impact on the consumers. You don't get that sense from listening to them today before our committee.

MR. CAVUTO: Senator, I wish I could have you on longer here. We're pressed for time, but always good having you. Thank you very much.

SEN. CARDIN: Thank you.

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