Hi John, it's the thought that counts. I appreciate the fact you responded. What are your fuel prices like in the land down under?

Hi James

Fuel prices in Australia vary from state to state. Here in Queensland it's around $1.50 per litre, about $6 a gallon. But we still get people buying huge 4x4s weighing 2 ton and carrying enough metal to repel a 2 inch mortar, just to run their kids to school and do the shopping.

Hi John, it ceases to amaze me how people waste fuel. They drive on the freeway like as if gasoline is a buck a gallon. GM has come out with a new product, it's a Chevy Tahoe hybrid. Have you heard or seen any of these yet down yonder?

 

In response to the letter I sent out the other day, I received this email in my inbox this morning from Trent Frank, Az rep in Congress:

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All Americans continue to be concerned about the rising price of gasoline in Arizona and throughout our country.  These increases have occurred for a variety of reasons.  The reality is that there are a myriad of factors impacting the price of gasoline and other fuels we consume.  Crude oil price, world demand, production levels, taxes, refining costs and distribution all affect the price of gasoline.  Crude oil inventories have the single biggest impact on gas prices.  The single largest entity impacting the world's oil supplies is the Organization of the Petroleum Exporting Countries (OPEC), a consortium of 11 countries: Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates and Venezuela.  Together, these nations are responsible for more than 40 percent of the world's oil production and control two-thirds of the world's crude oil reserves. 

Dependence on foreign oil has grown from only 35 percent during the 1973 OPEC oil embargo to nearly 60 percent today.  Given the instability in the Middle East, it is now more apparent than ever that it is in our national security interest to better develop our own sources of domestic energy.  The alternative, American consumers held hostage by wild price spikes resulting from political developments in countries half-a-world away, is undesirable to say the least.  

Taxes, including federal and state excise taxes, account for increasing the overall total price of gas in the United States.  Federal excise taxes are 18.4 cents per gallon, and Arizona state excise tax is 18 cents per gallon.  That is more than 36 cents that you and I pay in taxes per gallon of gasoline.  In the aftermath of Hurricane Katrina, I co-sponsored H.R. 3683, the Gas Tax Relief Act, which would put a 30 day moratorium on the federal gas tax.

Another significant source for our nation's susceptibility to gas price spikes is the stringent environmental standards that regulate the construction of new oil refineries.  In the last 30 years, nearly half of all refineries have been closed and no new facilities have received permits to build.

The U.S. refining industry was running at 97% capacity before Hurricane Katrina struck the Gulf Coast.  As we have witnessed, a critical portion of our energy industry is operating with no margin of error.  That is why I was an original co-sponsor of H.R. 3836, the Fuel Supply Improvement Act which would have encouraged expeditious construction new refineries and expansion of existing refineries.

Perhaps the best way to improve our current situation is to increase the emphasis on domestic oil and gas exploration and production.  Ultimately, we must make America less dependent on foreign oil.  It is not only a matter of energy security, but more importantly, a matter of national security.   Through exploration, innovation and conservation, we can grow our economy, create jobs and make our nation even stronger than we are today.  I have always supported and will continue to support the exploration and development of oil in the Arctic National Wildlife Refuge (ANWR).  The entire ANWR consists of 19 million acres, but technologically-advanced oil development facilities would occupy only 2,000 acres on the Coastal Plain of Alaska.  Ninety-nine percent of ANWR would not contain any development whatsoever.  We must continue to secure abundant and affordable supplies of energy to move the nation forward.
    
While demand in Asia is expanding exponentially as their economies continue to grow, America no doubt faces a new set of energy challenges.  I believe that if the United States is going to meet future energy needs in the coming decades, it will be due in part to continued advances in energy efficiency, including renewable energy technology, production and commonsense conservation reducing our demand on foreign supply, stimulating economic growth and keeping our country safe and strong.  I am a strong advocate for the responsible use of our nation's precious natural resources and will continue to work diligently for a sensible and practical energy policy that will not compromise those resources, our security, or our economic future. 

Again, thank you for taking the time to contact me. I wish you the very best in life, and I hope you will continue to inform me of the issues that concern you.  In the meantime, please feel free to visit my website at http://www.house.gov/franks.

 Most sincerely,

 Trent Franks
 United States Congress

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Please leave your comments about this letter. Thanks, and have a great day!

I really never had any idea that all these things are being done. I guess I am not alone. Oil speculation is no good for the majority so therefore the practice should be discontinued.

"Perhaps the best way to improve our current situation is to increase the emphasis on domestic oil and gas exploration and production."

That is a good suggestion. I hope it would be for the short term though. Because we really should be going in the direction of finding suitable alternatives. Not ethanol and all those proposed alternatives that cause us to sacrifice our food. Alternatives that will help to some how slow environmental damage. Maybe even revise how we design appliances and other gadgets where possible so they operate without electricity. eg vacum cleaners where the suction power is created by moving wheels instead of electricity. Vehicles running on solar charged batteries (just suggestions.)
We could still use oil for flying until other solid ideas come up.