Governor: Take a closer look at energy prices
Freudenthal supports look at forces behind high energy prices
November 2, 2005
Governor Dave Freudenthal sent a letter to members of the Senate Committee on Energy and Natural Resources on Monday expressing his support of a hearing and investigation to look at the reasons behind high energy prices.
Senate Majority Leader Bill Frist, R-Texas, last week requested a hearing and investigation to look at the reasons behind high energy prices. Freudenthal sent a letter to Sen. Pete Domenici, R-N.M., and Sen. Jeff Bingaman, D-N.M., respectively chairman and ranking member on the Senate Committee on Energy and Natural Resources.
Energy consumers need to have confidence that current high prices are the result of market factors and not market manipulation, Governor Freudenthal said in expressing his support for a U.S. Senate investigation into the matter.
"I encourage the United States Senate to take a look at the current pricing mechanisms in the energy sector," Freudenthal said in his letter. "We need to assure ourselves that the costs are actually related to market forces and not to market manipulation. In the absence of that, the consumer is going to have absolutely no confidence in what's going on."
"The record profits being announced by large oil companies will most certainly further escalate public frustration and distrust over the underlying causes of high energy prices…While I support free market enterprise as the best means to provide energy supplies, this investigation should help ensure that sufficient competitive market forces are at work or otherwise lead to corrective federal initiatives to correct any market abuses," he wrote.
"If it is found that the real culprit is insufficient supply in the face of growing world demand, the investigation may give insights into additional federal initiatives to prudently increase production of our energy resources beyond the measures in the 2005 Energy Policy Act," said Freudenthal.
"Wyoming residents and businesses have called on me to investigate gasoline and natural gas prices. As you know, such actions can best be taken at the federal level in view of the national and growing international markets for energy commodities. I trust the proposed investigation will provide valuable insights upon which Congress can base its decisions and inform the American public. Therefore, I urge your support and prompt action," Freudenthal said in his letter.