[Congressional Record Volume 146, Number 19 (Monday, February 28, 2000)]
[Senate]
[Pages S871-S872]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  SENATE RESOLUTION 263--EXPRESSING THE SENSE OF THE SENATE THAT THE 
  PRESIDENT SHOULD COMMUNICATE TO THE MEMBERS OF THE ORGANIZATION OF 
PETROLEUM EXPORTING COUNTRIES (``OPEC'') CARTEL AND NON-OPEC COUNTRIES 
THAT PARTICIPATE IN THE CARTEL OF CRUDE OIL PRODUCING COUNTRIES, BEFORE 
  THE MEETING OF THE OPEC NATIONS IN MARCH 2000, THE POSITION OF THE 
UNITED STATES IN FAVOR OF INCREASING WORLD CRUDE OIL SUPPLIES SO AS TO 
                    ACHIEVE STABLE CRUDE OIL PRICES

  Mr. ASHCROFT (for himself, Mr. Abraham, Mr. Grassley, Mr. Santorum, 
Mr. Hutchinson, Mr. Smith of New Hampshire, and Mr. Grams) submitted 
the following resolution; which was referred to the Committee on 
Foreign Relations:

                              S. Res. 263

       Whereas the United States currently imports roughly 55 
     percent of its crude oil;
       Whereas ensuring access to and stable prices for imported 
     crude oil for the United States and major allies and trading 
     partners of the United States is a continuing critical 
     objective of United States foreign and economic policy for 
     the foreseeable future;
       Whereas the 11 countries that make up the Organization of 
     Petroleum Exporting Countries (``OPEC'') produce 40 percent 
     of the world's crude oil and control 77 percent of proven 
     reserves, including much of the spare production capacity;
       Whereas beginning in March 1998, OPEC instituted 3 tiers of 
     production cuts, which reduced production by 4,300,000 
     barrels per day and have resulted in dramatic increases in 
     crude oil prices;
       Whereas in August 1999, crude oil prices had reached $21 
     per barrel and continued rising, exceeding $25 per barrel by 
     the end of 1999 and $27 per barrel during the first week of 
     February 2000;
       Whereas crude oil prices in the United States rose $14 per 
     barrel during 1999, the equivalent of 33 cents per gallon;
       Whereas the increase has translated into higher prices for 
     gasoline and other refined petroleum products; in the case of 
     gasoline, the increases in crude oil prices have resulted in 
     a penny-for-penny passthrough of increases at the pump;
       Whereas increases in the price of crude oil result in 
     increases in prices paid by United States consumers for 
     refined petroleum

[[Page S872]]

     products, including home heating oil, gasoline, and diesel 
     fuel;
       Whereas increases in the costs of refined petroleum 
     products have a negative effect on many Americans, including 
     the elderly and individuals of low income (whose home heating 
     oil costs have doubled in the last year), families who must 
     pay higher prices at the gas station, farmers (already hurt 
     by low commodity prices, trying to factor increased costs 
     into their budgets in preparation for the growing season), 
     truckers (who face an almost 10-year high in diesel fuel 
     prices), and manufacturers and retailers (who must factor in 
     increased production and transportation costs into the final 
     price of their goods): Now, therefore, be it
       Resolved, That it is the sense of the Senate that--
       (1) the President should immediately communicate to the 
     members of the Organization of Petroleum Exporting Countries 
     (``OPEC'') cartel and non-OPEC countries that participate in 
     the cartel of crude oil producing countries that--
       (A) the United States seeks to maintain strong relations 
     with crude oil producers around the world while promoting 
     international efforts to remove barriers to energy trade and 
     investment and increased access for United States energy 
     firms around the world;
       (B) the United States believes that restricting supply in a 
     market that is in demand of additional crude oil does serious 
     damage to the efforts that OPEC members have made to 
     demonstrate that they represent a reliable source of crude 
     oil supply;
       (C) the United States believes that stable crude oil prices 
     and supplies are essential for strong economic growth 
     throughout the world; and
       (D) the United States seeks an immediate lifting of the 
     OPEC crude oil production quotas;
       (2) the President should review administrative policies 
     that may put an undue burden on domestic crude oil producers, 
     and should consider lifting unnecessary regulations that 
     interfere with the ability of United States energy industries 
     to supply a greater percentage of the energy needs of the 
     United States; and
       (3) the Senate, when it considers the fiscal year 2001 
     Federal budget, should appropriate sufficient funds for the 
     development of alternative energy resources, including 
     measures to increase the use of biofuels and other renewable 
     resources, to reduce the dependence of the United States on 
     foreign energy sources.

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