By: Todd Knode

Today the House Select Committee on Energy Independence and Global Warming held hearings with a number of oil and gas company executives.  The topic: “probe the causes and solutions to America’s oil dependence.” Congress by its nature is a mixture of law and politics; laws are written and passed of course because of political reasons.  But today’s hearing was all politics with no legal action forthcoming.

A government can act to affect a product’s price through taxes and other indirect legislation and can forbid monopolies and price gouging in emergencies such as hurricanes but Congress cannot pass laws ordering companies to lower their prices.  What would Congress like Exxon Mobil, Shell and Chevron to lower their prices too; $3 a gallon, $2 a gallon?  What economic factors does Congress want the companies to take into account when deciding how much to charge?  The only real reason to hold today’s hearing was an attempt to shame the oil companies to lower their prices.

Congress does not need to hold a hearing to determine how and why we are addicted to oil.  If the Members watch the news during the morning and evening rush hours they will see why.  The US is not alone in having traffic choked highways and China and India, with their billion plus populations, are now awakening to the idea of one car per person.

The laws of the United States do not control the rise in oil prices, the law of supply and demand does.  This is not news though, oil prices have risen sharply over the past decade, and Congress has held hearing after hearing to probe the issue.  Oil prices will keep going up because car production and car driving will keep going up.  No Omnibus Spending Bill will stop it but more hearings may give Americans the false assumption Congress holds the solution.

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