Hearing of the Senate Committee on Energy and Natural Resources, Subcommittee on Energy on Role of Speculative Investment in Energy Markets

Hearing of the Senate Committee on Energy and Natural Resources, Subcommittee on Energy on Role of Speculative Investment in Energy Markets

Statement of Senator Daniel K. Akaka

U.S. Senator Daniel K. Akaka gave the following statement today at a hearing of the Senate Committee on Energy and Natural Resources, Subcommittee on Energy, to receive testimony on recent analyses of the role of speculative investment in energy markets:

"While the rest of the nation experienced some relief, recently, from lower gasoline prices, my state of Hawaii still pays over $4.00 per gallon for regular, unleaded gas. On the neighbor islands the situation is even worse. For example, on the island of Molokai, gas is over $5.00 per gallon. Further, means of public transport are limited in some areas of my home state.

"The high cost of crude oil impacts much more than the price of commuting. Hawaii relies on 90 percent of its energy coming from imported oil. Hawaii has the highest electricity prices in the nation. While the rest of the nation pays between 14 cents to 23 cents per kilowatt hour, residents in the island of Kauai pay over 40 cents per kilowatt hour. Finally, our local economy is also extremely sensitive to oil prices because Hawaii depends on airplanes and ships to bring in tourists and all of its goods.

"We must examine trading practices in oil commodity markets and examine the impact that they have on price. As there are some that argue that speculation has driven up the price of oil. For these reasons, I am very interested in what our witnesses have to say today, and how they may help us understand speculation in the oil markets. Oil is a commodity that we are highly dependent on."

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