Committee on Energy and Commerce, Democrats Home Page
Who We Are Schedule What's New
View Printable Version

Text only of letters sent from the Committee on Energy and Commerce Democrats

March 4, 2004

 

The Honorable Guy F. Caruso
Administrator
Energy Information Administration
1000 Independence Avenue, SW
Washington, D.C. 20585

Dear Administrator Caruso:

I am writing today with regard to the Energy Information Administration's (EIA) latest "This Week In Petroleum" (February 25, 2004) which indicates that retail gasoline prices could very well reach historical highs this year.

I am interested in EIA's analysis of both the short-term and long-term factors influencing the U.S. gasoline market. With that in mind, I have attached several questions that I would appreciate your answers by March 18, 2004.

Thank you for your attention to this matter. Should you have any questions, please contact me or have your staff contact Bruce Harris of the Committee on Energy and Commerce Democratic staff at 202-226-3400.

Sincerely,


JOHN D. DINGELL
RANKING MEMBER
COMMITTEE ON ENERGY AND COMMERCE

Attachment

cc: The Honorable Joe Barton, Chairman
Committee on Energy and Commerce

The Honorable Ralph M. Hall, Chairman
Committee on Energy and Air Quality

The Honorable Rick Boucher, Ranking Member
Subcommittee on Energy and Air Quality


Questions for Administrator Guy F. Caruso
Energy Information Administration

1. Has EIA performed any analysis on the effects of a weaker dollar on crude oil prices? If not, could you produce such an analysis? If so, what have the effects of the weak dollar been on crude oil prices and how has that affected retail gasoline prices?

2. According to data contained in EIA's Weekly Petroleum Status Report, U.S. crude stocks have been at or below the Lower Operational Inventory since November 2003 (Figure 3 "Stocks of Crude Oil by PAD District," June 2002 to Present). How did this situation occur and what does it imply for 2004 retail gasoline prices?

3. EIA's most recent "This Week In Petroleum" (February 25, 2004) states that "gasoline inventories are below the normal range for this time of year, meaning that should problems occur, there is little available supply immediately on hand either to meet increased demand or to respond to refinery, pipeline, or other infrastructure problems that may occur." Given this statement, can you please comment on the ability of U.S. petroleum refining and distribution infrastructure to absorb the effects of unforeseen events such as unplanned refinery outages, widespread loss of electrical power due to blackout, or shipping disruptions such as those seen recently in the Gulf of Mexico-Mississippi River shipping channel?

4. The Monthly Energy Review (Table 3.4) shows steadily increasing U.S. gasoline production, imports, and demand. Will U.S. refineries be able to keep up with future growth in demand, and if not, will foreign supplies be available to meet motorists' needs during 2004? What impact are these trends having on U.S. gasoline prices and supplies?

5. The past several years have seen a high level of merger and acquisition activity involving oil refiners, resulting in consolidated refining companies like Valero, Premcor, and Tesoro becoming major holders of U.S. capacity. In addition, the consolidation of firms such as ExxonMobile, ConnocoPhillips, and ChevronTexaco have resulted in these companies holding a larger share of domestic refining capacity. Have these developments affected gasoline supply and price, and, if so, how?

 

Prepared by the Committee on Energy and Commerce
2125 Rayburn House Office Building, Washington, DC 20515