Candidates pushing for gas relief

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As gas prices continue to put pressure on consumers, politicians are proposing solutions.

Sen. Byron Dorgan, D-N.D., spoke about energy problems and solutions at the Mandan Tesoro Refinery on Tuesday. Lynn Westfall, chief economist for the Tesoro Corp., and Paul Goulding, chairman of the North Dakota Petroleum Marketers Association, joined him to discuss oil speculators, the need for new drilling, and alternative energy sources.

Dorgan blasted oil speculators, who he accused of "trading paper" and causing the rapid inflation of gasoline prices in the last year.

Speculators in the oil commodities market drive up the price by buying and selling oil futures without taking any of the physical product. This allows speculators to turn profits, but it also affects the market price for crude oil, which drives up prices on the consumer end.

Dorgan said the speculators have caused the price of gas to jump significantly, and he wants to see stronger restrictions on speculators in an effort to rein in gas prices.

"This is the first hurdle, in my judgment," he said.

Westfall said the speculators were driving up prices for refineries like Tesoro, which has seen steadily rising prices for crude oil. He said supply and demand did not create the current gas market.

"There is no shortage of crude. There wasn't three years ago, there isn't today," he said.

He also voiced his support for Dorgan and called on other lawmakers to take steps to help control speculators.

""This is something Congress can do something about, and should do something about," he said.

Goulding echoed Westfall's remarks, and said that he worried if prices continued their upward trend this winter's heating season could leave some people out in the cold.

"Excess speculation in commodities markets has ruthlessly driven prices up," he said.

Dorgan also voiced his support for opening up new areas in the United States for drilling, but said that the U.S. cannot drill its way out of the problem.

Instead, he also called for increased conservation efforts and more funding for ambitious, "moon-shot" energy projects that would open up new sources of renewable energy.

"It's time for us to get serious," he said. "We ought not to be going down on bended knee to foreign producers for oil."

Gas prices have become a serious issue on the 2008 campaign trail both nationally and locally. Candidates for North Dakota's seat in the House of Representatives both list energy as one of their top priorities. And both have similar solutions.

Rep. Earl Pomeroy, D-N.D., and his Republican challenger Duane Sand both support expanded domestic oil drilling, but differ on where and how much to drill.

But they can agree on one thing: Oil speculation is hurting North Dakotans.

"This is something they should be working on right now," Sand said.

Pomeroy said challenging the speculators could bring swift, much-needed relief at the pumps for Americans.

"If there is one thing that can facilitate a shortterm response," he said, "in my opinion, it's dealing with speculators."

Sand criticized Pomeroy because last week Pomeroy voted in favor of adjourning until Sept. 8.

Sand says the Democratic majority in Congress has been blocking votes on increasing oil drilling. He says Congress should take up those issues instead of going on summer vacation.

(The Associated Press contributed to this story.)

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