Washington Week: Student Voices (O)

COLUMN: Oil companies continue to gouge American drivers
By Gaia Veenis
The Daily Aztec (San Diego State U.)
05/04/2006

(U-WIRE) SAN DIEGO — Today, gas prices in the United States are higher today than they've ever been. Many Americans are complaining about the cost burden while grudgingly changing their driving habits. A few people have even accepted the price-gouging. Even if you don't drive, you can't help but notice the price of gas inching closer toward $4 per gallon.

Meanwhile, as Americans are scrounging change from the floors of their cars at the corner gas station, Exxon/Mobile Corporation has posted its biggest first-quarter profit ever, according to Reuters. Last Thursday, they reported a quarterly profit of $8.4 billion, which followed record earnings of $10.7 billion the previous quarter. I find it hard to comprehend why Exxon and other companies have above average earnings while the American public is financially squeezed to the breaking point. And Exxon's ties to the controversial company Halliburton aren't exactly comforting, either.

Gas prices have always increased over time, but recently they've increased 5 cents per day, raising prices to about $3.50 for premium gas. While newspapers have reported a national average of $3 per gallon, San Diegans get to enjoy some of the highest rates in the nation.

The other day, I spent $50 to fill up my tank with premium gas. I had no choice but to use my credit card for my purchase. Otherwise, I'd have no feasible way to get to my internship and classes on time.

Crude oil futures reached a record $75.35 per barrel on April 24, according to www.bloomberg.com. Oil futures for June did fall to $70.61 last Thursday, but it's improbable they'll return to $50 per barrel like they were a few years back.

Conservatives, however, have an answer to this dilemma. Republican senators proposed a $100 tax rebate for gas. The deal also calls for spending $1.1 billion on alternative-fuels research and $1.8 billion on hybrid-vehicle research, according to The New York Times. The deal would also give the administration new authority to raise fuel-efficiency standards and subject oil companies to tougher scrutiny. Sounds good, but it comes with a catch: a provision to open a section of the Alaskan wildlife refuge for drilling.

Funny how that just slipped in there.

While countries such as Brazil are moving forward with a switch to ethanol gas, America is still lagging in introducing this possibility. Conservative economists seem more willing to promote Alaskan drilling than to really embrace alternative fuels such as ethanol. Brazil plans on being energy self-sufficient this year, according to The New York Times. We have no such goal. There is a small sampling of gas stations around the nation that offer corn-based ethanol or other alternative fuels. Brazil has widespread use of sugar-based ethanol, and many gas stations with pumps marked "G" for gas and "A" for alcohol.

Everywhere I turn, I hear people complaining about the price of gas, but many of us who drive have no choice but to suck it up and keep paying. While spontaneous weekend trips may be a thing of the past, getting to and from work, school and internships all throughout the city - or in some cases the county - can't be avoided. With a slow-moving and often inconvenient public transportation system, our city leaves us no choice but to pay to drive ourselves.

Other places in the country have alternative fuels available, although many are selling out. Large cities also have legitimate public transportation systems, such as a fast-paced subway. But San Diego is behind the times, and the trolley doesn't cut it. There's no reason why America's transportation systems and fuel efficiency models should be as outdated as they are today.

The oil crisis will never end. Though it's environmentally unfriendly, drilling for oil in Alaska may be a quick-fix.

We need better alternatives.

America must take a cue from countries such as Brazil that are trying to become self-sufficient in their fuel needs or from the many European nations with high-quality public transportation systems available throughout the country. Until then, we're all going to keep paying the price while the oil companies keep reaping the benefits.

-Gaia Veenis is a journalism senior and is the senior opinion columnist for The Daily Aztec.

-This column does not necessarily reflect the opinion of The Daily Aztec. Send e-mail to letters@thedailyaztec.com. Anonymous letters will not be printed - include your full name, major and year in school.

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