In spring 2000, the AAA predicted that Americans might not be "psychologically" prepared to deal with $2 a gallon gasoline. Somehow, we were and we did. In summer 2001 gas may hit $3 a gallon. So, get psyched-up, America, because it looks like there is little the federal government can do to help.

The Bush Administration plans to release its new energy policy next week, but according to a Washington Post story of May 8, 2001, White House officials have already warned Republican leaders in Congress that the new plan offers little help for either soaring gasoline prices or the Western electricity crisis.

"It's like having the doctor tell you you're sick, but he doesn't know what it is -- it's not what anyone wants to hear," a Republican official said. "Everyone's waking up to the fact that there's no magic bullet."

Last March, Congress failed to pass a bill that would have lowered, and in fact temporarily suspended federal taxes on gasoline. [See: Gas Tax Reduction Debated by Senate] While some Republican lawmakers want to revive the gas tax cuts, White House sources told the Washington Post that President Bush would support the action only if it became necessary to win Congressional approval of his energy policy.

The Post story quotes White House press secretary Ari Fleischer as stating that while Bush's energy plan will include conservation measures, "the president also believes that the American people's use of energy is a reflection of the strength of our economy, of the way of life that the American people have come to enjoy."

FTC clears refiners: On May 7, 2001, the Federal Trade Commission (FTC) announced the completion of its investigation of various marketing and distribution practices employed by the major oil refiners in Arizona, California, Nevada, Oregon, and Washington. After an almost three-year investigation, the Commission found no evidence of conduct by the refiners that violated federal antitrust laws.

According to Commissioners Sheila F. Anthony, Orson Swindle and Thomas B. Leary, the FTC initiated the investigation to explain the differences in the price of gasoline between Los Angeles, San Francisco and San Diego. Regarding the particular question that was investigated - whether there was a violation of antitrust laws - the investigation produced no evidence of illegal conduct by the refiners.

Can't blame OPEC: In a May 7, 2001 CNN report, energy industry expert Trilby Lundberg, publisher of the Lundberg Survey, states that the Organization of Petroleum Exporting Countries (OPEC) cartel cannot be blamed for rising gas prices, Lundberg said. "More crude would not help us. ... Refineries are cranking out about as much as they can to supply spring demand. I think it has alleviated somewhat. That's why we see a much lower increase this time than last time."

"The insatiable demand for energy has not gone away. The law of supply and demand, which is one that we did not write, seems to be working well." - Sen. Conrad Burns, R-Montana, May 8, 2001 - Congressional Quarterly.

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