A June 23 report on CNBC caught my attention. The newsperson first mentioned that the national average for a gallon of regular gas had risen another 10 cents to a $4.10 average. He went on to say that many experts believe that up to 70% of West Texas Crude Oil was being snapped up by speculators. It is no secret to most of the financial world that large hedge funds are probably forcing the market price higher by $30-$40 a barrel. If the speculators were wrestled from control of the open market, gasoline prices could be reduced to around $2.99 to $3.09 per gallon.

Largely unregulated, the hedge funds have apparently had their way in the oil markets over the past 15-18 months. Some possible good news is that in Washington the House Energy and Commerce Sub-Committee for Oversight on Speculation in the Oil Markets began its meetings last week. I hope the Committee seriously delves into the secret world of hedge fund speculation.

Just as the federal government has begun movement on better regulation of the investment banks after the credit crunch and sub-prime lending crisis, the federal government should insure that greed in the oil markets is not stealing the American dream from families across our nation.

Let’s face it, folks. Americans who are trying to live on minimum wages or even near that level are in crisis. The extended period of oil price hikes has filtered through to food prices, heating oil and a host of other commodity prices as well. At the same time, wages have not risen to keep up with the inflation.

A couple of weeks ago I got some puzzled looks from other legislators when I said, “You know it is probably a good thing that we are not reimbursed for our travels across our respective districts as Senators and House members.” One of my colleagues asked, “Why?” I replied, “When our constituents, the citizens of North Carolina and the United States, suffer at the hand of these high prices, we need to feel the pain as well.”

A shortage of refinery capacity in the United States also affects the current price of gasoline. When we pay for a gallon of gas, 73% goes for crude oil, 10% to refining, 6% to distribution and marketing, and 11% goes to taxes to keep our infrastructure sound. If we invest in better refining capacity, the percentages could result in increased supply at lower cost. Some short term better efficiency of refinery capacity could affect our ability to produce more gasoline and result in some reduction in cost at the pump in the short run.

Certainly there are other factors leading to high oil prices. Geo-political events, a dwindling supply worldwide, and a federal government that has failed miserably at long range solutions to the problem since the 1970s gas shortage crisis all contribute to the overall problem. China and India are crossing frontiers into the 21st century which leads to more competition worldwide for oil.

In summary, the factors I have mentioned, with the exception of speculation and, to some degree better use of refinery capacity, lend themselves to long-term solutions, which will take even years and decades.

At the same time, we must leave no stone unturned in seeking sustainable and renewable sources of energy. The possibilities are limitless; our future and, more importantly, the future and well-being of our children and grandchildren depend on it. Our energy future cannot be shaped and solved through political posturing and assignment of blame. That future will only be realized through a collaborative effort by private and public entities determined to keep America at the forefront of exploring what is here now as well as the exploration of new possibilities. People are not so much interested in who did what to whom as they are in, “What will we do for one another as we continue into the 21st century?”