[Congressional Record Volume 150, Number 32 (Friday, March 12, 2004)]
[Senate]
[Page S2773]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                            LOWER OIL PRICES

  Mr. LEVIN. Mr. President, last night the Senate voted to accept the 
amendment I offered with Senator Collins to the fiscal year 2005 budget 
resolution to lower oil prices by placing over 50 million barrels of 
oil on the open market rather than depositing it in the Strategic 
Petroleum Reserve--SPR--as the administration had planned. I would like 
to note for the record that this amendment already is accomplishing its 
objective of lowering oil prices. At 11:30 a.m. this morning, just 
hours after the news of this amendment reached the markets, oil prices 
fell. According to Reuters, ``NYMEX crude oil futures fell more than $1 
Friday morning after a U.S. Senate vote seeking to bar more shipments 
of crude oil to the U.S. emergency stockpile.''
  This amendment is a win-win for the American people. Low supplies of 
oil in private inventories are a main reason for high prices. With more 
oil on the open market, prices for gasoline, heating oil, jet fuel and 
diesel fuel will decline and consumers will benefit. At the same time, 
our cities and States will gain from additional funds for homeland 
security.
  The amendment directs the Department of Energy--DOE--to cancel 
delivery of 53 million barrels of crude oil currently planned for 
deposit into the SPR and to sell this oil on the open market. By 
selling oil on the open market, the Federal Government would generate 
over $1.7 billion in additional revenues. The amendment would allocate 
a portion of the $1.7 billion for deficit reduction and place the 
remainder in a reserve fund to be used for more homeland security 
funding for the States.

  I will continue to work within the Congress to persuade--or require, 
if necessary--the Administration to suspend shipments of oil to the SPR 
to lower prices further.
  I ask unanimous consent that the attached article on the drop in oil 
prices due to the Senate's action last night be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

               [From Reuters News Service, Mar. 12, 2004]

         NYMEX Oil Falls Over $1 on Possible SPR Shipments Halt

       New York.--NYMEX crude oil futures fell more than $1 Friday 
     morning after a U.S. Senate vote seeking to bar more 
     shipments of crude oil to the U.S. emergency crude stockpile.
       The move, which aims to reduce oil prices by keeping more 
     supply in the market, countered, for the moment, fears that 
     oil facilities were once again at risk after Thursday's 
     terror bomb attacks in Madrid killed nearly 200 people and 
     injured more than 1,400 others.
       NYMEX crude for April delivery fell as low as $35.30 a 
     barrel, down $1.48 on the day, before bouncing back a bit to 
     $35.40.

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