Courier-Journal - Hill, Sodrel Target Gas Prices, Candidates at Odds on How to Cut Costs

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Courier-Journal - Hill, Sodrel Target Gas Prices, Candidates at Odds on How to Cut Costs

Saying that rising gasoline costs are hurting Hoosiers, the major party candidates in the 9th Congressional District race zeroed in yesterday on proposals to combat prices at the pump.

On Capitol Hill, Democratic U.S. Rep. Baron Hill joined his colleagues to introduce a bill meant to curb energy speculators' influence on gas prices.

The news conference came the day after Hill introduced his own bill to re-establish firmer oversight of the nation's commodities markets, taking regulation back to its 2000 levels.

"This is not smoke and mirrors," Hill said. "Some economists are saying it would save $20 to $50 a barrel (of oil) and could go into effect immediately. If it's $50 a barrel, that's $2.75 on a gallon of gasoline."

Meanwhile in Jeffersonville, Republican Mike Sodrel said yesterday at a news conference that lawmakers are focusing too much on funding energy research and not enough on funding results. He proposed shifting some existing money earmarked for research grants to serve as rewards for developments that turn into a usable product.

"The American people are the most creative, innovative people on the planet," said Sodrel, who served as the district's congressman for two years after defeating Hill in 2004 but then lost to Hill two years ago.

"If you provide real incentives to the private sector, they might be able to do something like make ethanol out of kudzu," Sodrel said. "That would clean up the highways and make fuel out of something you can't eat."

Until such products can be developed, though, Sodrel said he supports expanding sites in the United States where oil drilling would be allowed -- a policy that would include the Arctic National Wildlife Refuge.

Hill and Sodrel are focusing on what has become one of the biggest issues in the district and nationwide.

"People are hurting," Hill said. "We hear about it every day."

Sodrel said gas prices have become voters' top issue.

"It's hard to divorce it from concern about the economy, but I think it's in first place now," Sodrel said.

But the two have different views about solutions to high gas prices.

Hill said yesterday that he supports legislation to require oil companies to drill on the 68 million acres they've already leased or lose the leases, something he hopes will delay any need to look for fuel in places like the Arctic refuge.

"If they have 68 million acres they can presently drill on, why aren't they drilling?" Hill asked. "The only answer I can come up with is they don't want to. They want to be making money without any risk."

Hill acknowledged he has had a number of constituents call his office to urge a vote expanding where drilling is allowed, but he doesn't think it's worthwhile.

A recent report by the Energy Information Administration, an independent statistical agency, may back him up. It found that drilling in the Arctic refuge wouldn't affect worldwide oil production for 10 years and then might affect prices negligibly.

But Sodrel said failing to open the refuge and other wildlife areas for energy exploration and instead relying on existing oil leases is irresponsible.

"There isn't oil or natural gas or natural resources under that entire 68 million acres," Sodrel said, referring to the leases. "A portion will never be developed. Either it doesn't have oil or it's not feasible to get it."

And Sodrel said he doesn't believe speculators are causing the run-up of prices.

"I wouldn't oppose that legislation, but it's not going to bear fruit," Sodrel said. "It's busy work. It's more regulation, investigation, taxes and lawsuits -- which is all we hear from the Democratic Congress -- and you can't produce anything with those four."

Hill said he believes going after speculators is part of the answer.

According to U.S. Rep. John Larson, D-Conn., and sponsor of the bill introduced yesterday, $9 billion was invested in oil futures in 2000. Now, that number is up to $250 billion.

His Consumer Oil Price Protection Act, which Hill is supporting, would reduce speculation in the markets by requiring that anyone investing in energy futures be able to take receipt of the product. Larson said it would take speculators out of the unregulated markets and shed some light on their activities.

Hill's bill is aimed at the energy commodity trading deregulation approved by Congress in 2000. He said that change created new loopholes that have fostered excessive speculation in U.S. futures markets.

He said his bill would close loopholes and strengthen oversight of the commodity trading market.

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