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SHOW: The News on CNBC (8:00 PM ET) - CNBC

HEADLINE: Senator Ron Wyden discusses high gasoline prices

ANCHORS: MICHELLE CARUSO-CABRERA

BODY:
MICHELLE CARUSO-CABRERA, anchor:

Oregon Democrat Ron Wyden is also on the Senate Energy and Natural Resources Committee. And he also joins us from Capitol Hill tonight.

Good evening, sir.

Senator RON WYDEN (Democrat, Energy & Natural Resources Committee): Good evening.

CARUSO-CABRERA: What is your answer as to what should be done right now about these record-high gasoline prices?

Sen. WYDEN: I think there's a perfect storm coming. I think you look at the fact they're taking oil out of the private marketplace, filling the Strategic Petroleum Reserve, the shenanigans of OPEC and then these refinery cutbacks, I-I think this is trouble for-for consumers. What I propose is the Federal Trade Commission look into the refinery cutbacks and try to determine if they're primarily to boost up profits. We ought to stop filling the Strategic Petroleum Reserve. And we ought to be a lot tougher with-with OPEC.

CARUSO-CABRERA: Senator Murkowski was just on. I believe you heard her. She argued that going into the Strat-to the Strategic Petroleum Reserve could be dicey. What if there is some kind of disruption in the supply of oil? And you'd have to dip so far into it, she argues, to be able to even reduce the price significantly.

Sen. WYDEN: Well, at a minimum, the position of this administration should be to stop filling the Strategic Petroleum Reserve. You've got a situation where this administration is taking money out of the private marketplace, taking oil out of the private marketplace and filling the Strategic Petroleum Reserve. That's a mistake. The Strategic Petroleum Reserve ought to be used to-to protect the consumer. And certainly, the-the administration ought to defer taking oil out of the private marketplace and filling the reserve now.

CARUSO-CABRERA: One of the arguments made about the situation with the price of gasoline in this country is that there are so many varied regional differences because of environmental laws in various states. Is it time that we start looking at perhaps a national policy on gasoline so the West Coast doesn't bear the brunt of such high prices?

Sen. WYDEN: Well, the-the West Coast is getting-getting clobbered because this administration is sitting by and doing nothing to promote competition in West Coast gasoline markets. You look at this refinery cutback in California. That-that deal just smells. Shell didn't even look for a buyer. A lot of independent experts say that there's oil in-in the area. The Federal Trade Commission is just sitting on its hands.

Now today, the administration makes a big deal about the fact that oil went-went down a little bit a barrel. Well, the fact is they are a day late and more than $7 short. The fact is that-that it is still right now, something like $7 ½ above the OPEC top target price. So I think what we ought to be doing is, first, the Federal Trade Commission needs to step in and investigate those refinery cutbacks. Second, it seems, to me, we ought to stop filling the Strategic Petroleum Reserve. And, third, we ought to pass my legislation to promote competition in the gasoline sector.

CARUSO-CABRERA: What about drilling in the Arctic National Wildlife Refuge? How do you feel about that?

Sen. WYDEN: If you drill in the Arctic Refuge, you will not get oil for years and years. So it won't have an effect for consumers at the pump. And, second, the oil companies testified before my committee that they're completely open to the idea of selling that oil to Asia at a discount. And they can more than make up for that discount by sticking it to-to consumers on the West Coast.

CARUSO-CABRERA: Senator Wyden, thank you for your time this evening.

Sen. WYDEN: Thanks for having me.