[Congressional Record Volume 147, Number 91 (Wednesday, June 27, 2001)]
[House]
[Pages H3625-H3626]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   REDUCING SUPPLY TO INCREASE PRICES

  (Mr. TIERNEY asked and was given permission to address the House for 
1 minute and to revise and extend his remarks.)
  Mr. TIERNEY. Mr. Speaker, people this morning have been talking about 
the energy situation, and I think it is important to talk calmly for a 
moment about some of the things that have been happening.
  I happen to be a member of the Subcommittee on Energy of the 
Committee on Government Reform, and we have had hearings with the 
American Petroleum Institute and others from the industry testifying 
before us. Also, Senator Wyden in the Senate has taken testimony on 
this matter.
  It is important for the American people to know that there is strong 
evidence that the industry acted to make sure that they reduced supply 
so that they could raise costs. Senator Wyden had thick documents, 
which I have just put on record in our committee hearing, showing over 
the last decade of the nineties there was too much refinery backlog for 
the companies, so they acted, or at least indicated they were going to 
act, to make sure that those refineries shrunk. Over 50 of them have 
closed.
  Therefore, we did not have the kind of supply that we needed; and of

[[Page H3626]]

course, that drove up demand and drove up price. Now that that is up 
there, the companies will tell you the reason we do not have enough 
fuel at reasonable prices is because we do not have enough refineries.
  Now they are looking for the triple play. Instead of producing more 
and getting that in the pipeline and having more refineries, they now 
want to do away with environmental regulations. This is not something 
we should allow to happen. We should keep our eye on that industry and 
make sure we get something done for the consumer.

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