Judiciary Hearing on Oil Prices and Market Failure
Chairman John Conyers gives opening remarks:
"As summer approaches, consumers are panicking over the price of gasoline at the pump. Prices have skyrocketed. Today's average US price of a gallon of gas is $3.03, short, just barely, of the record high reached in December of 2005 after Hurricane Katrina hit. In Michigan, gas prices have reached their highest level ever, at $3.27 a gallon. My state is now the third most expensive state for gasoline in the country, behind only California and Illinois. Now how did we get to this crisis? And what are the solutions? Cartels..."
Rep. Bart Stupak (MI-01), Chairman of the Energy & Commerce Subcommittee on Oversight & Investigations, gives testimony:
"For years Big Oil has told us that the cost of a gallon of gas was directly related to the price of crude on the world market. However, in April of this year, a barrel of crude oil was $63. Last year, a barrel of crude was $70. Despite the fact that crude is $7 a barrell cheaper than last year, gas prices are almost 50 cents higher per gallon. Clearly there's more at play than simply the price of crude oil."