Gasoline and crude oil prices

(a)

Findings

Congress finds that— (1)the prices of gasoline and crude oil have a direct and substantial impact on the financial well-being of families of the United States, the potential for national economic recovery, and the economic security of the United States; (2)on April 12, 2005, crude oil prices closed at the exceedingly high level of $51.86 per barrel and the price of crude oil has remained above $50 per barrel since February 22, 2005; (3)on April 11, 2005, the Energy Information Administration announced that the national price of gasoline, at $2.28 per gallon— (A)had set a new record high for a 4th consecutive week; (B)was $0.49 higher than last year; and (C)could reach even higher levels in the near future; (4)despite the severely high, sustained price of crude oil— (A)the Organization of Petroleum Exporting Countries (referred to in this section as OPEC) has refused to adequately increase production to calm global oil markets and officially abandoned its $22–$28 price target; and (B)officials of OPEC member nations have publicly indicated support for maintaining oil prices of $40–$50 per barrel; (5)the Strategic Petroleum Reserve (referred to in this section as SPR) was created to enhance the physical and economic security of the United States; (6)the law allows the SPR to be used to provide relief when oil and gasoline supply shortages cause economic hardship; (7)the proper management of the resources of the SPR could provide gasoline price relief to families of the United States and provide the United States with a tool to counterbalance OPEC supply management policies; (8)the Administration's current policy of filling the SPR despite the fact that the SPR is more than 98 percent full has exacerbated the rising price of crude oil and record high retail price of gasoline; (9)in order to combat high gasoline prices during the summer and fall of 2000, President Clinton released 30,000,000 barrels of oil from the SPR, stabilizing the retail price of gasoline; (10)increasing vertical integration has allowed— (A)the 5 largest oil companies in the United States to control almost as much crude oil production as the Middle Eastern members of OPEC, over ½ of domestic refiner capacity, and over 60 percent of the retail gasoline market; and (B)the top 10 oil companies in the world to make more than $100,000,000,000 in profit and in some instances to post record-breaking fourth quarter earnings that were in some cases more than 200 percent higher than the previous year; (11)the Administration has failed to manage the SPR in a manner that would provide gasoline price relief to working families; and (12)the Administration has failed to adequately demand that OPEC immediately increase oil production in order to lower crude oil prices and safeguard the world economy. (b)

Sense of Congress

It is the sense of Congress that the President should— (1)directly confront OPEC and challenge OPEC to immediately increase oil production; and (2)direct the Federal Trade Commission and Attorney General to exercise vigorous oversight over the oil markets to protect the people of the United States from price gouging and unfair practices at the gasoline pump. (c)

Strategic Petroleum Reserve

(1)

In general

For the period beginning on the date of enactment of this Act and ending on the date that is 30 days after the date of enactment of this Act— (A)deliveries of oil to the SPR shall be suspended; and (B)1,000,000 barrels of oil per day shall be released from the SPR. (2)

Extension

If necessary to lower the burden of gasoline prices on the economy of the United States and to circumvent the efforts of OPEC to reap windfall crude oil profits, 1,000,000 barrels of oil per day shall be released from the Strategic Petroleum Reserve for an additional 30 days.