I was surprised by how much I enjoyed Tim Russert’s “gas prices” panel this morning, in part because famed Nazi hunter Dick Durbin (D-Illinois) was very outmatched. I’m not even certain why he was on the show.

Read my show notes below the fold…

RUSSERT AND THE PRICE OF GASOLINE. Host Tim Russert’s guests on NBC’s Meet the Press: Energy Secretary Sam Bodman, American Petroleum Institute Pres. & CEO Red Cavaney, CNBC’s Jim Cramer, famed Nazi hunter Dick Durbin, and author/analyst Daniel Yergin.

Russert had onscreen a poll, and 45% of Americans surveyed are ticked about $3.00/gallon gas, more than are concerned about Iran with nukes. The same survey showed that 37% of those surveyed blame BIG OIL for the high price. That is the same as those who blame oil-producing countries and who blame President Bush combined. Russert asked Bodman why the prices were so high.

Secretary Bodman explained that gas prices have gone up because oil prices have gone up. He said that the suppliers have been unable to meet the demand, and this is a symptom of the economy doing so well. The second piece, he said, were external factors such as seasonal change and alterations in types of fuel. He sees two to three years before suppliers will be able to meet demand. Russert asked Bodman if the oil companies were exploiting the situation, and Bodman said that the President is having the justice department look into it.

Russert asked Dick Durbin, the famed Nazi hunter, why gasoline prices have risen 60-cents in one month. Durbin said: “Two things.” He blamed oil companies taking profit, $1,000 profit for every household in the country. He complained about the retirement packages of oil company execs. He blamed President Bush’s energy policy. We weren’t prepared to make the transition in energy, he snapped. Russert pointed out that Durbin had voted to convert to ethanol, and Durbin excused himself on the grounds of ethanol being “homegrown.”

Russert put on the screen something Jim Cramer had told Don Imus last Tuesday, that someone should investigate the Department of Energy for switching to ethanol with no clue about mixing ethanol into gasoline. Cramer said that everyone knew that such mixing would be difficult, but we did it anyway without any idea. Bodman replied that ethanol is easily blended with gasoline and is expanding in its availability. The problem, he said, was transportation of ethanol from the Midwest to major metropolitan areas.

Russert wondered why he hadn’t planned for transportation, and Bodman replied that this is done and done well by the private sector. David Yergin said that we were not an island. He said that we’re missing 2-million barrels a day and the Iraq war is making the price go up. Cavaney said that they don’t send their employees to danger zones, so the Iraqis have not yet been trained to harvest oil. Russert brought up Paul Wolfowitz saying that reconstruction would be paid for by oil revenue. Bodman promised improvement.

Russert quoted Hastert and Frist in a letter to President Bush asking the FTC to investigate gasoline price gouging. Cavaney said that this is what politicians do, and that they’ve been investigated in the past and nothing was found.

Agreeing with Durbin, Russert attacked Exxon’s earnings. Cavaney said that, yes, the profit was high, “but not for the size of the company.” He pointed out that national oil companies, owned by foreign governments, were earning more, and oil company profits as a percentage were in line with everything else.

Russert attacked Exxon for not looking into alternate fuels while giving out all sorts of perks to their executives. Cavaney said that oil companies in the U.S. have invested 73% of the total U.S. investment in alternative energy. Their job, as he sees it, is to provide us with energy of any type.

Russert asked Bodman why, if supply is down and demand is up, there is profit earned. Bodman tried to explain — “Now think about this, Tim, play it out.” Russert said that this was a decision of the oil companies. Bodman explained that the oil traders determine the price. Russert rambled about big oil and collusion.

Cramer pointed out that we have “a huge refinery problem” in this country, which he put on the shoulders of local governments: “No one wants a refinery next to them.” He talked of salaries of oil executives based on what they produce for the economy. Lee Raymond of Exxon creates a lot and earns a lot, which Cramer thinks is fair. He mentioned Katie Couric making $85,000/day and producing nothing for our economy. Russert deadpanned about millions of viewers of the Today program: “You leave Katie alone!”

Everyone but Dick Durbin shared a hearty laugh. Instead of sharing in the jollity, Durbin spat: “Am I the only one at this desk who sees profit taking as a problem? I understand the laws of supply and demand…” The Senator was out of his league on this panel, and I’m not sure why he was on it. He does not sit on the Senate Energy Committee, for instance, but he does represent a State wherein corn is grown. Illinois was no. 2 behind Iowa in the production of Ethanol. I assume Tom Harkin couldn’t make it, and Chuck Grassley is a Republican, so an outgunned Dick Durbin was left to prattle this morning.