Columnist Jeff German: Sandoval applies heat to big oil

Tuesday, April 1, 2003 | 11:01 a.m.

Every time gasoline prices have skyrocketed in Nevada since 1989, our elected leaders have looked to uncover evidence of price gouging by the big oil companies.

With motorists up in arms, it generally has been the politically expedient thing to do.

But every time, state leaders have come up short of reaching their goal, as big oil, generally through stonewalling and doublespeak, has managed to keep its complicated price-setting practices under wraps.

There's no reason to believe that Attorney General Brian Sandoval will have any more luck holding the oil companies accountable than his predecessors, but he's at least trying.

So far, big oil has yet to open up.

Only four of the 13 companies Sandoval queried two weeks ago responded, and of those only one offered a meaningful explanation for the high prices, which for the time being the attorney general is keeping to himself.

Despite his frustration, Sandoval, like the elected leaders before him, is determined to get answers.

"I'm not going to give up until we do," he said Monday. "This is an important issue that affects the lives of every Nevadan."

Sandoval said he has decided to hire an expert to analyze whatever pricing information he receives from the oil companies. He also is setting up a conference call on Wednesday with his fellow attorneys general across the country to discuss the business practices of the companies.

Getting the global corporations to come clean is Sandoval's biggest challenge. Some are so big that they have a tendency to ignore political entities the size of Nevada.

On its website ChevronTexaco boasts of operating in 180 countries and earning more than $100 billion a year in revenues. And ExxonMobil reports netting $11.5 billion in profits in 2002, which is more than twice Nevada's $4.8 billion budget over the next two years.

Steve Yarborough, president of the Nevada Gasoline Retailers Association, said he's used to politicians "rattling sabres" against the oil giants and doesn't hold out hope that Sandoval will uncover price gouging.

"It's not going to go anywhere," Yarborough said. "It's the same thing we see every time there's a disruption in the market."

But as history has shown, rattling a sabre can at least get big oil's attention.

When former Gov. Bob Miller called for an investigation into rising prices in 1989, the cost of gasoline mysteriously began to dip. The same thing happened when former Attorney General Frankie Sue Del Papa took a look at the oil companies in 1996.

It happened again in 1999 when the Federal Trade Commission launched a national probe.

At the moment, regular gasoline prices in Nevada are third highest in the nation, with Las Vegas motorists paying an average of $2.06 a gallon. But prices have been holding steady since Sandoval stepped up the attack late last week.

While it may be early to get too excited about that, it should give us more reason to root for the attorney general.