Energy secretary hammered on gas prices
March 20th, 2012
01:30 PM ET
2 years ago

Energy secretary hammered on gas prices

Washington (CNN) – A committee hearing Tuesday on the Department of Energy's use of stimulus funding kept returning to rising gas prices as Republicans hammered Secretary Steven Chu over the pain at the pump.

The partisan divide of Washington was on full display at the House Oversight Committee hearing.

FULL STORY

Filed under: Congress • Energy • gas prices • House • Steven Chu
soundoff (37 Responses)
  1. Malory Archer

    It's a good thing thinking Americans know that the President and his cabinet have NO control over oil prices. It's also a good thing thinking Americans know that a great many of the oil wells being drilled in the United States are foreign-owned and operated, and short of nationalizing the oil, nothing will change. IMO, Secretary Chu should call their bluff and announce plans to nationalize all American oil companies just to watch reichwing heads explode! I'd pay big for tickets to see that show!

    March 20, 2012 01:43 pm at 1:43 pm |
  2. diridi

    I think American speculators are the culprits. I don't think any one can do any thing. China is wanting more Oil, so is India. Iran is cutting oil to France and EU. Yes, we need to listen to T'BoonPickens, It is the right time to Push Alternate-Energy. Push more Small Cars on US highways at Cheaper prices, with solid Warranty. Greed need to go away from Nation, and GOP bickering is hurting this nation than any thing. Obama2012.
    Nationalize Oil Companies, then push AlternateFuel....done.

    March 20, 2012 01:44 pm at 1:44 pm |
  3. GI Joe.

    It's no wonder the republicans can't do anything for Americans.

    They are busy doing things TO americans and having needless hearings ----–

    March 20, 2012 01:46 pm at 1:46 pm |
  4. medschoolkid

    Yes it is true that many of the domestic drilling is done by foreign companies. But they still pay royalties to the US and the private landowners, as well as hire Americans to do the drilling. And its a good paying job. Until the DOE opens up more land and sea for drilling we will continue to have high gas prices. Domestic drilling makes way more sense than paying the Saudis or Brazil for their oil.

    March 20, 2012 02:00 pm at 2:00 pm |
  5. Rudy NYC

    Remember, folks. Republicans are making all of this noise about oil prices and pipelines because it is all part of their jobs plan for the future.

    I think the way to take oil speculators out of the equation is to implement a policy similar to what the Chicago Board of Trade implemented a number of years ago when they had a problem with speculators driving up the futures prices of commodities like corn, wheat, and pork bellies.

    You must take actual delivery of a minimum percentage of the futures that you purchase. Currently, you only have to pay a fine if you do not make good to purchase the commodities futures when they become due. That is a reasonable risk, and part of the cost of doing business. No problem. Paying for and taking actual delivery of the stuff, that is an entirely different story. Now the spectre of fraud charges come into the picture.

    March 20, 2012 02:01 pm at 2:01 pm |
  6. Four and The Door

    I bet on his way back to Chicago next January Obama would give anything for a do-over on the pipeline deal. Regardless of how quickly that project would improve our own control over gas prices it just highlights what a stupid decision this is for anyone trying to convince the country that they care one bit about energy costs or unemployment.

    March 20, 2012 02:02 pm at 2:02 pm |
  7. GROVER NORQUIST IS A ENEMY OF THE STATE

    Once again another worthless hearing setup to be a spectacle just so republicans can bash the President and members of his cabinet. There is nothing the President nor Sec. Chu can do that will have gas down to $2.50 a gallon by next week. This has got to be the most lame argument. Gas got up to $4 and some change under Bush. Where was this outcry then????

    March 20, 2012 02:05 pm at 2:05 pm |
  8. The Greedy Old PIgs declared class war on US!

    Two things the GOBP can do to immediately reduce gas prices: Support stronger regulations of the commodities market and stop raising tensions in the Middle East with warmongering about Iran and Syria. The GOBP will agree to do these things when pigs fly, which tells you all you need to know about what an un-American bunch of weasels and parasites now run the GOBP.

    March 20, 2012 02:06 pm at 2:06 pm |
  9. Wire Palladin, S. F.

    I cannot imagine a right wingnut posting that the pipe line was a good idea. Congressional republicans shot down any possibility that the oil from the pipe line would be used exclusively in America. The republicans inflated the jobs number and the environmental impact would be devastating for the mid west.

    March 20, 2012 02:11 pm at 2:11 pm |
  10. Wire Palladin, S. F.

    As long as speculators are allowed to make a fortune on oil futures, energy costs will be high.

    March 20, 2012 02:12 pm at 2:12 pm |
  11. Dominican mama 4 Obama (the real one)

    And who do WE get to hammer over Republicans being a pain in the tookus?

    March 20, 2012 02:12 pm at 2:12 pm |
  12. GROVER NORQUIST IS A ENEMY OF THE STATE

    I bet on his way back to Chicago next January Obama would give anything for a do-over on the pipeline deal.
    ---------------------------------------------–
    My friend, I think you've seen one ExxonMobil commercial too many. Republicans are going to wish that they didn't push so hard for the pipeline without a thorough review of the safety concerns from the State Department. They must have forgotten that they've been branded the G.O.B.P.

    March 20, 2012 02:13 pm at 2:13 pm |
  13. Dominican mama 4 Obama (the real one)

    Four and The Door

    I bet on his way back to Chicago next January Obama would give anything for a do-over on the pipeline deal.
    -------------------------------------------------
    I don't think that President Obama will be giving much thought to the pipeline deal on his way to one of the MANY re-election parties he'll be attending in Chicago. But then again Four, he is such a conscientious President that he might jot a few ideas down while flying into O'Hara on Air Force One.

    March 20, 2012 02:15 pm at 2:15 pm |
  14. Wire Palladin, S. F.

    Instead of truth from the right wingnuts, we get the talking points from Hanoi Hannity and Bagdad Beck.

    March 20, 2012 02:19 pm at 2:19 pm |
  15. Rudy NYC

    Four and The Door

    I bet on his way back to Chicago next January Obama would give anything for a do-over on the pipeline deal. Regardless of how quickly that project would improve our own control over gas prices it just highlights what a stupid decision this is for anyone trying to convince the country that they care one bit about energy costs or unemployment.
    -------------–
    What your stupid decision to write the above remarks? They are more critical of Congressional Republicans who portray themselves like they really do care about energy and unemployment, even more so than liberals and Democrats.

    What facts do you have to back up the talking point about how the pipeline "would improve our own control over gas prices"? The pipeline would transport oil, not refined gasoline.

    Did you know that our gas consumption has been on a downward trend for the past few years, and that the current US gasoline supply has been up in recent months, which drove down prices last year? Did you know that at least two major gasoline refining facilities in the US have been idled over the past 6 months to reduce the oversupply gasoline in the US?

    March 20, 2012 02:21 pm at 2:21 pm |
  16. Wire Palladin, S. F.

    Speaking of foreign oil Exxon Mobil commercials, we are bombarded by them in Florida. They even say the pipeline would create 100,000 jobs, but according to reality the number is closer to 6000 temporary jobs.

    March 20, 2012 02:21 pm at 2:21 pm |
  17. SOUTHERN HOTTIE

    *sniff, sniff* Is that GOP desperation or what?

    No politician can effect gas prices.

    March 20, 2012 02:26 pm at 2:26 pm |
  18. Four and The Door

    Wire Palladin, S. F.
    Speaking of foreign oil Exxon Mobil commercials, we are bombarded by them in Florida. They even say the pipeline would create 100,000 jobs, but according to reality the number is closer to 6000 temporary jobs.
    _______________________________________________________________________________________________
    How about all them Obama jobs making the ultra-green new economy Chevy Volt? They are actually putting production on hold for a couple months while they bombard the country with Volt commercials in an attempt to actually sell a few of them. Oops!

    March 20, 2012 02:29 pm at 2:29 pm |
  19. S.positive

    President Obama will retire in 2016...

    March 20, 2012 02:30 pm at 2:30 pm |
  20. 2012liberal

    As long as oil and gas are a traded commodity on the market it will remain n speculators rich peoples hands. Contact cfdc to make sure volker law impliments commodity rules on banks speculating!

    March 20, 2012 02:31 pm at 2:31 pm |
  21. S.positive

    President Obama wins in Nov 2012 and retires in 2016. Just making sure everyone understands...

    March 20, 2012 02:31 pm at 2:31 pm |
  22. Fair is Fair

    Never thought I'd ever hear AMERICANS calling for the "nationalization" of privately owned industry. Stuff like this comes right out of the Communist Manifesto. The founders are trully rolling over in their graves, but Karl Marx would be proud.

    March 20, 2012 02:32 pm at 2:32 pm |
  23. Dominican mama 4 Obama (the real one)

    What your stupid decision to write the above remarks?
    -------------------------------------------------
    Rudy!!!! You're stooping "my padawan" lol!

    March 20, 2012 02:34 pm at 2:34 pm |
  24. Truth and Nothing But the Truth

    Chu is just another incompetent Obama administration CHUmp. Holder and this moron should get the boot but the master of incompetence in the Whitehouse admires their incompetence and refuses to get rid of them. The American people will have to take control of that decision in November. Polish up the resume CUHmp with your great successes like Solyndra. This is what happens when you put elite leftwing professors in charge of government.

    March 20, 2012 02:36 pm at 2:36 pm |
  25. Rudy NYC

    Yes it is true that many of the domestic drilling is done by foreign companies. But they still pay royalties to the US and the private landowners, as well as hire Americans to do the drilling. And its a good paying job. Until the DOE opens up more land and sea for drilling we will continue to have high gas prices. Domestic drilling makes way more sense than paying the Saudis or Brazil for their oil.
    --------–
    What isn't true is your misconception that the oil goes directly to the US market. It goes up for bid on the global market, and we pay the global price for it. Which is exactly why this pipeline will raise the cost of our oil we purchase from north of our border.

    Oil drilled in Alaska and Canada has a higher tranportation cost associated with it. As a result, the oil is sold at a lower cost. Transportation to the US is much cheaper than transportation to anywhere else in the world. So, we buy it at the discounted price. If you build the pipeline, then that would remove the pressure to discount the price and the price goes up.

    That is exactly what happened when the Alaska Pipeline was built, despite conservative arguments that it would lower the price of oil. In fact, the price of a barrel of oil quadrupled during the construction period as oil companies cited the cost of construction. Once the pipeline was completed the prices did not fall to previous levels.

    March 20, 2012 02:36 pm at 2:36 pm |
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