[Congressional Record Volume 144, Number 39 (Tuesday, March 31, 1998)]
[House]
[Page H1781]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                CURRENT HIGH OIL PRICES CAUSED BY GREED

  The SPEAKER pro tempore. Under the Speaker's announced policy of 
January 21, 1997, the gentleman from Illinois (Mr. Jackson) is 
recognized during morning hour debates for 5 minutes.
  Mr. JACKSON of Illinois. Mr. Speaker, today I rise to call attention 
to a contradiction in market economics. About 2 weeks ago, American 
consumers were told that oil prices had hit a record low, and last 
Tuesday the New York Times reported that crude oil prices rose 13 
percent on the basis of a pledge to cut the supply. Thirteen percent 
was the biggest one-day rise in oil prices since the Persian Gulf War 
more than 7 years ago, yet there was no national or international 
crisis that precipitated the rise to 13 percent.
  There is presently an oversupply of oil on the market. One would 
expect prices to be low and stay that way until demand overtakes 
supply. But this is not a rise in price because of a reduction of the 
supply or increase in demand. That just simply could not happen in a 
week. This is not a response to the market. This is a reaction to the 
promise, the promise, of cuts in crude oil supplies.
  From my perspective, this is raw greed. For those Americans who are 
observing this process today, there is not one product that I can 
imagine, that many of us can imagine, that is not impacted by the price 
of crude oil, from our cars, motors, our engines, to the suit that I am 
wearing, to the tie that I am wearing, to our socks, to our shoes, to 
paper products, to all plastics, to paint, to chemical manufacturing, 
to computers. You have name it, just about every product that we 
produce in our Nation has some oil-based content.
  So today the Federal Reserve Board will meet to set interest rates. 
If they raise interest rates because they think oil prices will be low 
and overheat the economy, the economy will simply slow and the oil 
companies will make out like bandits.
  With the mere promise of higher oil prices, they can continue to 
produce oil in a glutted market, charge higher prices and, clearly, 
make out like bandits. So if the Federal Reserve Board today meets to 
raise interest rates, and therefore slow down growth of the U.S. 
economy, please do not blame the Democrats and, for that matter, do not 
even blame the Republicans. Just blame the oil companies, who happen to 
be Republicans.

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