Conrad addresses fuel prices

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U.S. Sen. Kent Conrad, D-ND, is hoping a multifaceted approach by the government can rein in soaring fuel prices.

Conrad, who's been touring the state this week touting his plan, said the price of gas is "what is really on the minds of NorthDakotans across the state."

The official purpose of Conrad's Wednesday trip was to hold a Senate Budget Committee field hearing on the issue, but he was also looking to unveil his five-point plan.

With his customary charts in the background, Conrad said he would like to see a plan that increases domestic oil production, reins in oil speculation, promotes fuel-efficient vehicles, provides incentives for alternative fuels, and promotes coal-to-liquid techniques.

He said the government needs to promote cellulosic ethanol and coal-to-liquid technology, and that North Dakota can play a big role in this future.

"I think we'll look back and see that North Dakota becomes a major energy hub for the nation," he said.

Lynn Helms, director of the oil and gas division of the North Dakota Industrial Commission, testified that the Bakken formation in western North Dakota offers the opportunity to achieve such a future.

While estimates place North Dakota's Bakken reserves at 2 billion recoverable barrels, with future technological improvements, oil companies could gain access to 150 billion barrels.

In terms of gas prices, Helms said it would probably take a decade for North Dakota's oil production to have an effect on gas prices across the nation.

"This is going to be a long-sustained process in developing our petroleum resources in North Dakota," he said.

According to Gene LaDoucer, public affairs director for AAA North Dakota, the relief can't come soon enough.

LaDoucer testified that North Dakotans are driving less because of high fuel prices and many are calling AAA with questions and pleas for help.

"The reality is that the cost of gasoline is causing some North Dakotans to struggle to make ends meet," he said.

In the Midwest region, the most precise breakout of AAA data, people are driving 2 percent less.

LaDoucer said AAA is even getting more calls from people stranded on the road after running out of gas.

Apparently, with the high prices, they're waiting longer to fill up in the hope that gas will go down "even by a few cents," he said.

(Reach reporter Jonathan Rivoli at 250-8264 or jonathan.rivoli@bismarcktribune.com.)

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