Don't scapegoat Big Oil for prices

The implication by Sen. Durbin and other congressmen that the oil companies are gouging the public makes an easy target in this era of high fuel prices.

There are in fact logical explanations that unfortunately don't fit the political agenda and are conveniently left out. Let me state a few:

1. This country is not self sufficient in oil. Did anyone in Congress hear of OPEC? Other countries now provide most of the excess capacity and thus set their price.

2. We restrict potential exploration and production of oil and thus limit the possibility that the U.S. could be more self sufficient.

3. Virtually no new refineries have been built in this country in 50 years, largely because of environmental concerns. This squeezes gasoline supply during high demand periods, or when refinery outages occur.

4. Major competition for the available world supply of oil has dramatically increased from countries like China and India. as demand goes up for oil and other commodities, price escalates.

5. The value of the dollar has been sinking and thus buys fewer goods from abroad. Exporters to the US thus demand more dollars for their product to compensate for this depreciation.

6. The new oil that is being found tends to be located in areas such as the ocean floor or deep in the earth under layers of rock that make it more expensive to produce. The era of cheap oil is over.

7. Speculators abound in all volatile markets and seek to profit when real or projected shortages exist, thus sending prices soaring.

Don't get me wrong. I would like to see lower fuel prices too.

I just think we could use more facts in understanding the problem.

Are we going to blame the "fat cat" farmers next for the increased cost of our bread or corn flakes? Probably not, agriculture enjoys more support in Congress than the petroleum industry.

James Mooney

Arlington Heights