DOCUMENTS IN THE NEWS - 2008
Gasoline Prices

• Energy Markets: Factors that Influence Gasoline Prices
  • Crude oil is the primary determinant of gasoline prices
  • Other factors include demand, refinery capacity, declining inventories, and environmental regulations (e.g. specialized fuels)
  • Merger of oil companies contributed very little to price rise
  • General Accounting Office report dated May 22, 2007
• Primer on Gasoline Prices
  • A 2005 brochure showing the components of retail gasoline prices (53% crude oil, 19% taxes, 19% refining costs, 12% distribution and marketing)
  • Attempts to explain the fluctuating market
• Frequently-Asked Questions (DOE)
  • Where gas comes from, 2005 projections on prices, state taxes
  • Shows pump price as 68% crude oil, 13% taxes, 11% distribution and marketing, and 8% refinery
• Crude Oil to Gasoline
  • There are 42 gallons of oil in a barrel
  • The yield of gasoline in a barrel varies greately, but usually 47% depending on the type of crude oil and refinery
• This Week in Petroleum (Feb. 27, 2008)
  • Oil reserves are up and demand down
  • However, predicts rise in pump prices due to crude oil prices
• Supply/Demand estimates for Spring 2008 showing imports and ethanol as components

• PUMP PRICES
  • Fuel Gauge Report (AAA)
    • Daily report on national, state and local average prices for various types of fuel
    • Gives today's price, yesterday's, a month ago, and a year ago
    • Includes some graphs
  • Local Prices Today
    • Gas Buddy
      • Find gas prices at individual stations via zip code or city
      • Information current to within 36 hours
    • Pilot Travel Centers
      • Prices for diesel and gas
      • Only selected locations within a state
    • Speedway
      • Local gas prices updated every 30 minutes
      • Search by city, zip code, state
  • Retail Motor Gasoline Prices in Selected Countries, 1990-2006 (DOE)
    • Comparison of prices in U.S. dollars for North American and European countries, Australia, South Africa, China and South Korea
  • Weekly Retail Gasoline Prices in U.S. (DOE)
    • Average national weekly gasoline prices by type of fuel since 1993
  • Airline Fuel Surcharge
    • Article by Rick Seaney appearing in ABC News Business Traveller on May 2, 2008
    • Cost of a $400 round trip airline ticket has $93.02 in fuel surcharges

• AIRLINES
  • Fliers in for Pain as Airlines Pack It In
    • Extensive article showing plans for airlines to cut seats and airports this fall
    • An interactive map by state shows which airports in that state will be cut and by percentage

• TRUCKING
  • American Trucking Association
    • Letters to the President and Congress about rising fuel prices in the trucking industry in 2008
    • Where oil reserves are found and prices at the pump

  • American Trucking Association (Priority Issues: Fuel)
    • Provides information on the various types of fuels used in the trucking industry, including biodiesel and Ultra Low Sulfur Diesel (ULSD).

  • Clean Diesel Fuel Alliance
    • Provides information on highway and non-road ULSD fuel, as well as vehicle performance with and environmental impacts of ULSD fuel.

  • Renewable Fuels (Diesel Technology Forum)
    • Provides information on the production, use, and environmental impact of renewable diesel fuels such as biodiesel.

  

  
  

• CRUDE OIL PRICES PER BARREL
  • World Crude Oil Prices (DOE)
    • Weekly prices since 1978 by country and type of oil in dollars per barrel
  • Crude Oil Prices v. Gasoline
    • If there are 42 gallons of unrefined oil to a barrel and about 20 gallons of refined gasoline come from a barrel, a $2 rise in the price of a barrel would translate into a 10-cent increase of the price per gallon at the pump?
  

  
  

• CRUDE OIL RESERVES
  • World Crude Oil and Natural Gas Reserves (DOE)
    • Data for 2006 appears in Table 11.4 of its Annual Energy Review
  

  
  

• POLITICAL INSTABILITY in OIL PRODUCING COUNTRIES
  • Nigeria
    • All Africa: Petroleum
      • Numerous news articles describing the attacks on oil wells and workers in Nigeria
    • Iraq
    • Venezuela

• CRUDE OIL AVAILABLE TO U.S. REFINERS
  • Imports and Exports (DOE)
    • Monthly historical import data of crude oil by country
    • Landed costs of imported crude oil by country of origin
  • Monthly Crude Oil Production in the U.S. (DOE)
    • Data by state since 1981
    • Can be compared with import data
  

  
  

• REFINER PRODUCTION AND SALES
  • Consumption and Sales
    • Refiner sales, monthly and annual (three-month time lag) in U.S.
    • Short-term forecasts of consumption and prices
  • Weekly Inputs, Utilization, Production
    • Weekly data since 1982 on U.S. refinery intake by type of crude oil in U.S.
    • Production by type of product (gasoline, kerosene, distillate, propane, residential fuel oil)
  • World Petroleum Consumption (DOE)
    • Spreadsheet with annual petroleum consumption since 1991 for most countries in the work in thousands of barrels per day
  

  
  

• OIL COMPANY PROFITS
  • Exploring the Skyrocketing Price of Oil (Senate Judiciary Committee)
    • Hearing held on May 21, 2008
    • Web site includes prepared testimony of executives from the major oil companies
  • Bloomberg: Exxon Profits Top Estimates After Oil Surges
    • Reprint of Feb. 1, 2008 article by Bloomberg on oil company profits
    • Presented by Congressman Markey of Massachusetts
  • Fortune 500
    • Ranks top companies and provides profits, 1955-2006
  • Gasoline Prices, Oil Company Profits, and the American Consumer (Doc. Cen. Y 4.C73/8:110-51)
    • Hearing before the House Committee on Energy and Commerce, dated May 22, 2007
  • Oil Company Profit Review 2007 (Congressional Research Service)
    • Profits for oil extraction have increased dramatically but refining operations have lost money

• PRESIDENT
  • PRESIDENTIAL CANDIDATES
    • Hillary Clinton
    • John McCain
    • Barack Obama
  • PRESIDENT BUSH

• CONGRESS

• STRENGTHEN WEAK DOLLAR
  • Fed Could Burst Oil's Bubble (CNN)
    • Article by David Goldman of CNN on April 29, 2008
    • Interest rate reduction weakens dollar
    • Chart shows fall in dollar's value versus rise in oil prices, 2007/08
  • Exchange Rate Against the Euro (Federal Reserve Board)
    • Chart showing monthly exchange rate against the Euro since 1999
  • Effective Federal Funds Rate (Federal Reserve Board)
    • Chart showing weekly key interest rate, 1950 to present
  

  
  

• DECREASE DEMAND
  • Motor Vehicle Sales
    • Most data reported on television comes from commercial sources, which could charge money for their sales data
    • JD Power PIN Newsletter
      • Last four issues free on the web
      • Weekly issues often give sales trends, e.g. SUV and light trucks versus various size cars
    • LEXIS Academic (UMich Only)
      • Search current newspapers for the past month to determine trends in motor vehicle sales
  • Miles per Gallon
    Energy Independence and Security Act of 2007 (PL 110-140, H.R. 6)
    • Requires manufacturers' automotive fleets to average 35 MPH by 2020
    • Provides competitive grants for developing plug-in electric vehicles
    • Raises requirements for the use of biofuels and establishes competitive grants for research
    • Fuel Economy Guide (DOE/EPA)
      • Search or compare individual car, van and light truck models for the current year on fuel economy
      • Indicates typical miles per gallon, annual gas cost, and emissions
    • Your Car (DOE)
      • Calculate gasoline costs at various MPG, gas mileage tips, how to buy alternative cards (e.g. comparison of hybrids), alternative fuels and their costs
  • Public Transportation
    • Public Transit Ridership Continues To Grow In The First Quarter Of 2008
      • Ridership up 85 million over Jan.-March 2007
      • Press release from the American Public Transit Association on June 2, 2008
  • Alternative Fuels
    • Debate Central
      • Numerous articles on the 2008/09 high school debate topic
      • Covers climate change, energy efficiency, peak oil, state counterplans
      Energy Independence and Security Act of 2007 (PL 110-140, H.R. 6)
      • Requires manufacturers' automotive fleets to average 35 MPH by 2020
      • Provides competitive grants for developing plug-in electric vehicles
      • Raises requirements for the use of biofuels and establishes competitive grants for research
    • Your Car (DOE)
      • Calculate gasoline costs at various MPG, gas mileage tips, how to buy alternative cards (e.g. comparison of hybrids), alternative fuels and their costs

  Reduce Driving
  • Americans Driving at Historic Lows (DOT)
    • Press release showing vehicle miles driven in March 2008 dropped 4.3% over March 2007 and dropped 7.3 billion miles total since November 2006
    • Links to historic data found in Traffic Volume Trends

  

  
  

• REDUCE/STOP ADDITIONS TO STRATEGIC PETROLEUM RESERVE
  • Dorgan Leads Call to Stop Filling Strategic Petroleum Reserve
    • Press release on letter to President Bush, dated March 14, 2008
    • SPR is 97% full; U.S. should stop filling it at 70,000 gallons per day to ease gasoline prices
  • Pumping Up Prices: The Strategic Petroleum Reserve and Record Gas Prices
    • Selections from hearing held by the House Select Committee on Energy Independence, April 24, 2008
    • Includes GAO recommendations to replace the type of crude in the reserve and the impact of high prices on the trucking industry
  • Strategic Petroleum Reserve Fill Suspension and Consumer Protection Act of 2008
    • H.R. 6022 sent to President Bush on May 15, 2008; Public Law 110-232.
    • Calls for suspension of filling the Strategic Petroleum Reserve until the end of 2008
    • House Roll Call Vote on May 13 and passed by Senate in unanimous consent on May 14, 2008
    • Department of Energy press release implementing the law
  

  
  

• INCREASE SUPPLY
  • Arctic National Wildlife Refuge: New Directions in the 110th Congress (CRS)
    • Describes oil drilling yield, environmental concerns
    • Summarizes reasons the opening of oil leases did not pass in the 109th Congress
  • Energy Policy Act of 2005
    • Provided incentives for increasing supply of all types of energy
    • Did not permit drilling in the Arctic National Wildlife Refuge or establish regulations against price gouging
  • Gas Price Relief for Consumers Act of 2008
    • H.R. 6074 passed the House on May 20, 2008
    • Would permit the Attorney General to establish a task force to determine whether OPEC should be sued for limited petroleum supplies
  • Saudi Arabia Position
    • Saudis say insufficient demand to pump more oil
    • U.S. crisis due to lack of refinery capacity, political instability in other parts of the world, weak dollar, and commodity trading
    • Article appears in the Saudi Gazette, May 17, 2008
  • Shell Oil President: To Cut Price Produce More Gasoline in United States (CNN)
    • John Hofmesiter, President of Shell, recommended the U.S. produce 2-3 million barrels per day to reduce gas prices
    • Claims U.S. has 100 billion barrels of oil under a 30-year moratorium
  • Organization of Petroleum Exporting Countries
    • Expect No Relief from OPEC (Jt Economic Committee--Republicans)
      • Suggests oil cartel will not increase oil production for any reason
    • OPEC Country Analysis (DOE/EIA)
      • Describes mechanism OPEC is using for determining world oil prices after it dismantled its price band in 2005
    • Organization of Petroleum Exporting Countries
      • Current prices of crude oil (which may be less than commodity markets)
      • Production plans and OPEC reserves
    • With Gasoline Prices at Historic Highs, Senators Vow to Block U.S. Arms Deals With OPEC Members if They Don't Increase Oil Production (Jt Economic Committee--Democrats)
      • Press release dated April 24, 2008
    • Saudis to Host Jeddah Oil Summit
      • Meeting scheduled between oil producers and consumers on June 22, 2008

  

  
  

• WAIVE FEDERAL GAS TAX
  • Articles
    • Gas Tax Holiday: Can the States Do Better (Tax Policy Center)
      • Describes results of 2000 Indiana and Illinois state gas tax holidays
    • $2.00 Gas! Studying the Effects of Gas Tax Moratorium
      • Study by Joseph J. Doyle Jr. and Krislert Samphantharak issued in December 2005 on effects of Illinois and Indiana gas tax holidays
    • Gas Tax Holiday: Good Politics/Bad Policy (Taxpayers for Common Sense)
    • McCain's Gas Tax Proposal Will Cost Much, Do Little
      • Dear Colleague letter by James Oberstar of the House Committee on Transportation and Infrastructure, dated April 15, 2008
  • State Gasoline Taxes (American Petroleum Institute
    • State-by-state listing of various gasoline taxes by state, including excise taxes per gallon, sales taxes, etc.
  • S. 2890 (McCain Plan)
  • S. 2891 (Clinton Plan) (introduced on 5/2/08 but not available 5/6/08)
  

  
  

• ESTABLISH WINDFALL PROFITS TAX
  • History
    • Established in 1980 by PL 96-223 along with incentives to reduced energy dependence
    • Repealed in 1988 by PL 100-418 (H.R. 4848)
  • Articles
    • See Senate Votes to Repeal Windfall Profits Tax (CQ Almanac, 1987) [UMich Only]
    • Crude Oil Windfall Profit Tax: Context and Content (CRS, 1981)
  • Petroleum Consumer Price Gouging Protection Act
    • Bill (S. 1419) passed Senate and incorporated into H.R. 6 in 2007 but left out of final Energy Independence and Security Act of 2007 (PL 110-140, H.R. 6) due to threat of Presidential veto
  • S. 3044, which would have reinstated a windfall profits tax, failed to reach the Senate floor on June 10, 2008 via roll call vote
  

  
  

• IMPROVE REGULATION OVER COMMODITY EXCHANGES
  • Energy Speculation: Is Greater Regulation Necessary to Stop Price Manipulation
    • Chairman Bart Stupak's opening statement to a House Commerce Committee hearing on December 12, 2007
    • Energy Market Manipulation and Federal Enforcement Regimes
      • Hearings before the Senate Commerce, Science and Transportation Committee on June 3, 2008
      • Includes views from consumer advocates, oil companies, faculty, and regulators
    • Oil Speculation: What Congress Wants (CNN Money)
      • Outlines nine bills about energy speculation in June 2008
      • Bills may require larger downpayment before speculating, adding staff to the Commodity Futures Trading Commission, requiring the buyer to handle the commodity, limiting hedge funds from investing
    • Reed and Levin Call for Federal Task Force to Curb Speculation that is Driving Up Energy Prices
      • Letter sent to President Bush by Senators Jack Reed and Carl Levin
      • Speculation may be adding 25% to energy prices
      • Requests task force to investigate, composed of Secretary of the Treasury; the Chairman of the Securities and Exchange Commission (SEC); the Chairman of the Commodities Future Trading Commission (CFTC); the Chairman of the Federal Trade Commission (FTC); the Chairman of the Federal Energy Regulatory Commission (FERC); and the Attorney General
    • The Commodity Futures Modernization Act of 2000 (114 STAT.2763A-365) created an Enron Loophole in the dark ICE market (OTC and online energy trades are not regulated)
    • Paper describes bills and options for market oversight
  • Lieberman considers bill to limit oil, food speculators (Campus Only)
    • Article dated May 21, 2008 from Environment and Energy Daily
    • Senator Lieberman may introduce bill to limit commodity speculation by large hedge funds, pension funds and institutional investors
    • Part of the reason oil prices are trading beyond their extraction cost
  • Prohibitions on Market Manipulation (Federal Trade Commission)
    • Federal Register notice of May 1, 2008
    • Requests comments on how it should proceed to develop regulations countering price manipulation
  • CFTC Announces Multiple Energy Market Initiatives
    • Commodity Futures Trading Commission will be monitoring fairness of the international and U.S. commodity futures markets
    • Continuing an investigation of possible fraud in energy futures trading
    • Press release dated May 29, 2008
  • Congressional Committee Hearings
    • Full Committee Hearing: To examine the influence of non-commercial, institutional investors on the price of oil (Senate Energy and Natural Resources Committee)
      • Hearing held on April 1, 2008
      • Selected testimony, including the chief economist of the Commodity Futures Trading Commission
    • Gasoline prices : hearing before the Committee on Energy and Natural Resources, United States Senate, One Hundred Ninth Congress, first session, to receive testimony on gasoline prices and factors contributing to current high prices, September 6, 2005 (Doc. Cen. Y4 .EN2: S. Hrg. 109-235)
    • World Crude Oil Pricing; hearing before the Committee on Energy and Commerce, House of Representatives, One Hundred Ninth Congress, second session, May 4, 2006 (Doc. Cen. Y 4.C 73/8: 109-96)
  • Close the Enron Loophole
    • Lobby group seeking further regulation of the futures markets
    • Numerous articles on the price of oil and speculation
    • S. 2058 sponsored by Levin and Reed, introduced on September 17, 2007

Todd A. Baker, Documents Assistant
Grace York, Coordinator, Documents Center
University of Michigan Library
Send comments and suggestions to govdocs@umich.edu

http://www.lib.umich.edu/govdocs/dn08/dn08gas.html

The Regents of the University of Michigan. All Rights Reserved