Energy lessons

Lately, one of the most visible and affecting pieces of our economic picture has been energy costs. In 2002, gasoline prices in the Rocky Mountain Region averaged $1.35 per gallon, in 2003 prices rose to $1.56 per gallon, and the current average for October 2005 is $2.89 per gallon. This is up 97 percent from this time last year (U.S. Department of Energy). The most recent spike came in the wake of Katrina, which shut down 18 refineries, about 20 percent of our national total.

There are fewer than 150 refineries operating in the U.S., down from 324 in 1981. Where did they all go? Many fell victim to the 1981 deregulation of the industry, which forced a lot of the smaller less-profitable refineries out of business. Surely, Katrina had an impact, but if the hurricane alone was the source of our woes, then gas prices would reflect the 20 percent decrease in production with a 20 percent increase in price (roughly).

Demand is on the rise, but so is supply. In 2004, the government issued permits for 22,000 new oil and gas drilling operations. Natural gas is seeing increases in production, but also increases in price. Fortunately, all of our salaries will be adjusted accordingly, I'm sure! And just how is it that an energy company can jack up prices at the drop of a hat? Yep -- the D word again: Deregulation. Remember how we were sold the idea of free-market competition driving down prices for the good of the consumer? Boy, that worked out well.

Now the president says we should conserve energy resources, and expresses his "concern" over high gas prices. Sorry, George, but how sincere can we believe you to be when it is you and your oil and gas industry cronies who are reaping huge profits as prices skyrocket? If we want to understand why we're getting squeezed at the pump and whacked by high utility bills, we need look no further than the lobbyists and energy industry kingpins, and the people who write our energy policy -- they are one and the same.

If we want to change the situation, we need to remember what we've learned here when we vote. Apologies to habitual Republican voters, but these guys who stand up and promise to fight abortion, keep gay people from getting married and let you keep your guns are the same people who are crushing you economically. Worse yet, they're crushing the rest of us too. Hope you enjoyed your $237 tax cut from W, you get to put it all (and then some) back into your gas tank.

Michael Holland

Bozeman

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