[Congressional Record Volume 142, Number 65 (Friday, May 10, 1996)]
[House]
[Page H4881]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




         ALASKAN OIL SALES RESPONSIBLE FOR GASOLINE PRICE HIKES

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Washington [Mr. Metcalf] is recognized for 5 minutes.
  Mr. METCALF. Mr. Speaker, last week the President of the United 
States ordered oil to be pumped from the strategic petroleum reserve in 
an effort to counter rising gasoline prices. What is behind all this? 
Why are gasoline prices soaring, and why now? Why are price increases 
most dramatic on the West Coast?
  Many factors can impact the price of oil. In this case, two 
Government actions are pushing up the price of gasoline. First, of 
course, the President's gas tax is making a bad situation worse. The 
gas tax hits the low-income working families the hardest and should be 
repealed immediately.
  But just last week, at the same time that he ordered additional oil 
out of our strategic reserves, the President authorized the export of 
Alaskan oil to Asia. At a time when gas prices are soaring, he chose to 
send United States gasoline to Asian nations instead of to American 
consumers.
  We had a ban on exporting Alaskan oil. The ban was part of an 
agreement that allowed the building of the pipeline in the first place. 
In fact, the pipeline would not have been built without that agreement. 
This agreement should never have been broken. As we face soaring oil 
prices at home, we are preparing to reduce domestic supplies of oil by 
shipping it overseas.
  I saw it coming. Everyone should have seen this coming. During 
congressional consideration of that legislation to end the ban on 
export of Alaskan oil, I vigorously warned of higher gasoline prices, 
opposing even members of my own party. The majority of Congress argued 
that if we allow this oil to be exported, higher prices will be 
charged, with the result of revenue increase to the Treasury. But 
higher oil prices mean higher gasoline prices. That is not very 
complicated. It does not take a rocket scientist to figure that out. 
Legislation was then passed allowing the President to export the oil at 
his discretion.
  Did not the Congress and the President realize that reducing the oil 
supply from Alaska would dramatically raise gas prices, especially on 
the West Coast? Of course price increases in the United States were 
sure to follow, as markets reacted in anticipation of falling supply 
and increasing demand.
  The President's decisions contradict each other. He is opening the 
strategic petroleum reserve to lower the price of oil. At the same time 
this President allows shipments of American oil to Asian consumers. He 
is making the problem worse than it needs to be, and, as usual, working 
people and their families are paying the price.
  It makes no sense to release our strategic reserves at the same time 
we are exporting needed Alaskan oil. Mr. President, please be 
consistent and stop playing politics with the price of gasoline.

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