GAS: Don't blame big oil

I disagree with Russ Bohn's views on high gas prices ("Gas prices take the shirts off our backs," April 15).

Mr. Bohn laments that he is unable to shop for gasoline prices the same way he can shop around for a better deal on a shirt. He then jumps on the popular bandwagon of blaming "Big Oil" for this perceived injustice. Mr. Bohn complains that some undefined group of oil companies made profits of more than $123 billion two years ago. Without context, the reader can only assume that $123 billion must be bad because it's a big number.

Unfortunately, Mr. Bohn neglects to explain what "Big Oil" does with its profits. To offset the natural decline of currently producing fields and to maintain a stable energy supply, petroleum companies must redeploy profits into new projects. Finding and producing new oil and gas reserves is an expensive and risky proposition. Exploration wells in remote environments can cost upward of $100 million. In the event a discovery is made, more money must be spent to bring new oil and gas to market. As an example, it is not unusual for a single new project in the Deepwater Gulf of Mexico to cost more than $4 billion and require 7-10 years of planning and construction prior to producing any revenue whatsoever.

As a solution to the current uptick in gasoline prices, Mr. Bohn proposes a bargain-basement price cap of $2.50/gallon for the next five years. In reality, gasoline in the U.S. has been "on sale" forever resulting in a society heavily dependent upon fossil fuels. An unrealistically low gasoline price cap would only perpetuate our national foot-dragging in the development of more fuel-efficient cars, effective public transportation and alternative energy.

Mr. Bohn also suggests that oil companies should not receive "free money" from government subsidies. The specifics and magnitude of these subsidies is unclear. He fails to acknowledge that oil companies pay billions of dollars annually to the federal government in income taxes, royalties and lease bonuses. Revenues from mineral leases are one of the federal government's largest sources of non-tax income. Oil and gas operations on federal lands are, by no stretch of the imagination, "free."

While I disagree with Mr. Bohn's opinions on gas prices, I support his observation that we need political leadership with the courage to maintain a clear national energy strategy during times of both high and low energy prices. Only then will we be able to develop truly effective alternative energy solutions.

JULIE GIBBS

Hayden