The High Price of Oil

The following is a message I sent to my Representative in Congress, the Honorable Brad Sherman:

Representative Sherman:

It seems to me that our country works best when we all work together. The current overly-inflated gasoline price is a prime example of an area where we must come to an agreement. President Bush recently called for a moratorium on Congress’ ban on offshore drilling for oil and gas. I think this is an area that needs to be explored, rather than being dismissed immediately.

If the Democrats and the Republicans work together, we can do something to solve this crisis, however, it would be foolish to simply lift the ban, as the President has suggested. This ban has been in place for nearly 30 years, and has received large support from both Democrats and Republicans and to simply lift it is to invite abuse.

What I would suggest is a compromise that would be beneficial to the Democrats, as it shows our willingness to work with the current administration, as well as to the American people as it will help alleviate the high price of oil.

In the area of offshore drilling, the agreement would be that no drilling will be allowed offshore until the entire 68 million acres currently under lease on federal lands and waters outside of the ban area are developed. Only after this has been done will offshore drilling be considered.

Additionally, all oil extracted from the United States must be capped at fifty dollars per barrel, without exception. In no event can any oil from the United States be sold for an amount higher than this. Such a restriction would bring down prices considerably.

Next, any oil extracted from the United States must remain within the United States. It can only be sold here, it can only be refined here and the gasoline created can only be sold at stations in the United States. Further, those stations can only sell the gasoline at a price that would reflect the fifty dollar per barrel maximum. This would bring gasoline prices back down to less than half of where they are today.

Further, once oil prices on the open market drop to a level below seventy five dollars per barrel, all drilling in the United States that was begun to confront the high cost of oil must cease. Production can only resume when (and if) oil is once again trading at a rate higher than seventy five dollars per barrel.

Once all oil has been depleted from the 68 million acres currently under lease to oil companies on federal lands and waters, then and only then can Congress debate the idea of offshore drilling.

I welcome your response to this idea.

Sincerely,

Mr. Patt Gavin