Manchin's Message from the Hill to the Mountains: Commonsense Steps to More Affordable Gas Prices

Statement

Gas prices in West Virginia are averaging $3.80 a gallon -- five cents higher than the national average. The past few weeks have seen prices skyrocket. In our state, where we have to drive to survive, the roller coaster ride of rising and falling gas prices is hitting our families where it hurts -- in their pocketbooks. As our economy struggles to recover, West Virginians can't afford gas prices to keep climbing higher and higher.

If we are ever going to free this country from its costly reliance on foreign oil, the most important thing we can do is develop a national energy plan that uses all of our vast domestic resources. We need this Administration and the Environmental Protection Agency to stop picking winners and losers when it comes to energy resources. But until we have that plan in place, there are immediate steps we can take to bring down gas prices in the short term.

One of the biggest problems with gas prices are the oil speculators who are just betting against America. They see a conflict in the world and place a bet that with things heating up, oil is going to get more expensive. By some estimates, oil speculation makes up as much as 25 percent of the cost of a barrel of oil. And, according to a February 27, 2012 article in Forbes, excessive oil speculation translates into an extra $.56 per gallon of gasoline.

In fact, a broad group representing many aspects of our economy agrees that speculators are at the heart of our gas price spikes. When everyone from the American Trucking Association, Delta Airlines, the Saudi Arabian government, Exxon Mobil and the St. Louis Federal Reserve agree that excessive speculation significantly increases the price at the pump, we have to do something about it.

It is outrageous that these oil speculators are not only getting away with betting against America and the American people, but they are making a hefty profit while doing so. The American people should not have to pay the price at the pump every time there's a hiccup somewhere in the world.

Our families are cutting back to pay the price of speculation, and that's just not right.

So this week, I cosponsored legislation that would limit the ability of oil speculators to artificially drive up the price of gas prices, the Anti-Excessive Speculation Act (S. 1598).

Our government also has some tools that we can -- and must -- use now.

In 2010, Congress passed a law that required the Commodities Futures and Trading Commission to impose strict limits on speculation. But unfortunately, the CFTC has failed to comply. To push them, I sent a letter to the Chairman, urging him to take immediate steps to eliminate excessive oil speculation.

In the near-term future, we also need to end our reliance on oil from countries that want to do us harm.

So another thing we should do right away is get started on building Keystone XL pipeline, which would boost our economy, create jobs and help our country better use all of our vast energy resources. This week, I voted to authorize construction of the Keystone XL pipeline from Canada, creating thousands of American construction jobs that both business and labor groups have supported.

The Keystone XL pipeline simply makes sense. I can't understand why we would pass up an opportunity to buy oil from our greatest ally and trading partner, Canada -- especially because if we don't buy it, China will.

And I can promise you that there aren't a lot of speculators out there willing to make a bet that we'll get into a conflict with Canada.

To me, all of that just makes common sense. I would welcome your ideas and concerns, too, and I hope you stay in touch with my office.

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