WASHINGTON, April 25, 2006 - America’s oil and natural gas industry welcomes the administration’s increased focus on the nation’s long-term and short-term energy issues. The industry’s one-hundred years of experience in motor fuels provides us with important insights in managing a complex fuels system in a way that insures consumers’ access to reliable and affordable energy supplies. We are working full-time to meet the energy needs of the nation’s consumers and to comply with environmental and fuel requirements in government regulations and laws.
As specified in the Renewable Fuel Standard signed into law last August, we are blending more ethanol into gasoline. The distribution challenges associated with ethanol make it necessary to transport the fuel via tanker trucks and railroad tank cars, which drives up the cost of the fuel. The proliferation of boutique fuels— localized fuel blends mandated by individual jurisdictions—further complicates the production and distribution of fuels to retail outlets.
There are several factors that contribute to the retail price of gasoline. The largest is the price of crude oil, which today accounts for 55 percent of the price at the pump. To the extent that a temporary halt of deliveries of oil into the Strategic Petroleum Reserve can help consumers, the industry endorses the President’s action today.
As we have stated publicly, we do not condone price gouging. Our industry has been investigated more than 30 times by federal authorities and there has been no evidence of collusion or market manipulation.
News media contact: Karen Matusic, (202) 682-8118