Constituent of CD 22 tells Hinchey, “…increase domestic production of oil immediately!”

Dear Mr. Hinchey:

I read your recent comments on the rising gasoline prices and its effects on family finances.

The price of commodities is based on the supply and the demand for the commodity.  Uncertainty of supply, such as what we have in the oil market today because of the turmoil in North Africa and the Middle East cast doubts on the uninterrupted availability of the oil supply.  This uncertainty is what leads to the price volatility that affects the consumer.

Rather than go after the commodities market and impose regulations that will restrict commerce in oil when the supply is stable again, we need to immediately increase domestic production.

When oil peaked at $145 a barrel in July 2008, we saw gas prices go to $4.00 a gallon and the economy take a nose dive.  This nation runs on fuel and when its costs go up, so does the cost of almost all of our goods and services.  The more that is spent on fuel, the less money the people have to buy food, clothing and other consumer goods.  That means there is less demand for products, which creates a downward spiraling effect of less production and more layoffs and higher unemployment.

Recall that on March 31, 2010, President Obama said “The bottom line is this: Given our energy needs, in order to sustain economic growth and produce jobs and keep our businesses competitive, we are going to need to harness traditional sources of fuel even as we ramp up production of new sources of renewable, homegrown energy.”

It has now been a year since Mr. Obama declared that domestic oil production be expanded.  Yet we have had no significant increase.  Rather than waiting another year to start increasing production, the Federal government should take action now.  Lift the moratoria on oil drilling in our costal waters, Federal reserves and public lands.  This will decrease our dependence on oil from unreliable sources and stabilize gasoline prices.

Respectfully,

Robert Carlson