[Congressional Record Volume 150, Number 70 (Tuesday, May 18, 2004)]
[Senate]
[Pages S5612-S5613]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                         SUBMITTED RESOLUTIONS

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 SENATE RESOLUTION 364--EXPRESSING THE SENSE OF THE SENATE CONCERNING 
                              OIL MARKETS

  Mr. SCHUMER (for himself, Mr. Kennedy, Ms. Stabenow, Ms. Mikulski, 
Mr. Wyden, Mr. Durbin, Mr. Corzine, Mrs. Boxer, Mr. Levin, Mr. 
Lautenberg, Mr. Leahy, Mr. Harkin, Mr. Dodd, Mrs. Feinstein, Mrs. 
Clinton, Mr. Sarbanes, Mr. Reed, Mr. Daschle, Mrs. Murray, Mr. 
Lieberman, Mr. Rockefeller, Mr. Akaka, Mr. Feingold, Mr. Reid, Mr. 
Johnson, and Mr. Dayton) submitted the following resolution; which was 
referred to the Committee on Energy and Natural Resources:

                              S. Res. 364

       Whereas the prices of gasoline and crude oil have a direct 
     and substantial impact on the financial well-being of 
     American families, the potential for national economic 
     recovery, and the economic security of the United States;
       Whereas on Friday, May 7, 2004, crude oil prices reached a 
     13-year high of $40 per barrel, the weighted national average 
     retail price of gasoline was $1.96 per gallon, and the 
     average retail price of gasoline has broken all-time record 
     highs for 2 consecutive months;
       Whereas despite the fact that crude oil prices were already 
     approaching record highs, the Organization of Petroleum 
     Exporting Countries (OPEC) announced on April 1, 2004, its 
     commitment to reduce oil production by 1,000,000 barrels per 
     day;
       Whereas the Strategic Petroleum Reserve (SPR) was created 
     to enhance the physical and economic security of the United 
     States, and the law allows the SPR to be used to provide 
     relief when oil and gasoline supply shortages cause economic 
     hardship;
       Whereas the proper management of the resources of the SPR 
     could provide gasoline price relief to American families and 
     provide the United States with a tool to counterbalance OPEC 
     supply management policies;
       Whereas it has been reported that the Administration's 
     current policy of filling the SPR at a rate of hundreds of 
     thousands of barrels per day, despite the fact that the SPR 
     is more than 94 percent full, has contributed to record high 
     gasoline contract prices on the New York Mercantile Exchange;
       Whereas in order to combat high gasoline prices during the 
     summer and fall of 2000, President Clinton released 
     30,000,000 barrels of oil from the SPR, stabilizing the 
     retail price of gasoline;
        Whereas the Administration has failed to manage the SPR in 
     a manner that would provide gasoline price relief to working 
     families; and
       Whereas the Administration has failed to adequately demand 
     that OPEC immediately increase oil production in order to 
     lower crude oil prices and safeguard the world economy: Now, 
     therefore, be it
       Resolved,

     SECTION 1. SENSE OF THE SENATE CONCERNING OIL MARKETS.

       It is the sense of the Senate that--
       (1) the President should directly confront OPEC and 
     challenge OPEC to immediately increase oil production;
       (2) the President should direct the Federal Trade 
     Commission and Attorney General to exercise vigorous 
     oversight over the oil markets to protect the American people 
     from price gouging and unfair practices at the gasoline pump; 
     and
       (3) to lower the burden of gasoline prices on the American 
     economy and to circumvent OPEC's efforts to reap windfall 
     crude oil profits, the President should suspend deliveries of 
     oil to the SPR and release 1,000,000 barrels of oil per day 
     from the SPR for 30 days following the date of adoption of 
     this resolution, and if necessary, for an additional 30 days 
     beyond that.

  Mr. KENNEDY. Mr. President, gasoline prices in Massachusetts just 
passed the two-dollar mark, and are expected to go even higher in the 
months ahead. A year ago, the average price of regular gas in 
Massachusetts was $1.53 per gallon. That means that the average two-car 
middle class family is paying $56 more per month for gasoline than they 
were last year. That's the same as a $660 middle class pay cut for the 
year.
  In addition, the high price of gasoline is causing the prices of 
other consumer goods to go up as well, including groceries and other 
necessities.
  But while middle class families are hurting, the Bush Administration 
stands on the sidelines. They are doing nothing to encourage OPEC 
nations to increase production to bring down oil prices.
  They are doing nothing to prevent price gouging by the 
Administration's friends in the oil industry. The profits of the top 
five oil companies jumped 300 percent in just the past year. That's 
money taken right out of the pockets of middle class America, and the 
administration is doing nothing about it.
  The President has failed the American consumer with his weak gasoline 
policies and by pandering to the big oil companies.
  Today, I stand with my colleagues and demand that President Bush take 
immediate action to bring down prices at the pump that impose such a 
heavy burden on consumers. The President should confront OPEC and 
demand an increase in oil production. And the President should stop 
filling the Strategic Petroleum Reserve and release a million barrels 
of oil a day until prices stabilize.
  President Clinton released 30 million barrels in 2000 and this was 
effective in lowering the price of gasoline.
  The Reserve was created for times of crisis, and I believe strongly 
that it should be used sparingly and for true emergencies. Because the 
Reserve is almost full today, I believe we can draw down on it without 
jeopardizing our strategic interests. And the law allows it to be used 
when supply shortages cause economic hardships for the American people.
  Finally, the President should direct the Attorney General to 
intervene with the big oil companies to prevent price gouging.
  This is a crisis that is harming middle class families right now. We 
need action and we need it now. Every day that the White House 
continues to turn a blind eye to Big Oil, the worse it gets for the 
pocketbooks of average families. This legislation would call on the 
White House to reverse course and take immediate steps to provide some 
relief to American consumers.
  Mr. ROCKEFELLER. Mr. President, it is my pleasure today to join with 
25 of my colleagues in calling on the President to delay scheduled 
deposits to our Nation's Strategic Petroleum Reserve (SPR), and to 
release some of the crude currently there to alleviate our current 
record-high gasoline prices. It is important for families in West 
Virginia and across the country to have affordable gasoline, and it is 
crucial that our economy not be dragged down further by spiraling 
inflation fueled by high prices at the pump.
  It has been more than a month since I joined with many of the same 
Senators who have cosponsored this resolution in a letter to the 
President calling on him to help reduce skyrocketing gasoline prices by 
putting further deliveries of petroleum into the marketplace instead of 
the national reserve. Since then, crude oil prices have reached a 
thirteen-year high of nearly $42 per barrel, which has led to a rise in 
the price of gasoline to $2.01 a gallon nationally. This is more than 
50 cents higher than a year ago. The burden of high gas prices is being 
felt by all Americans, and is eating away at any ``relief'' the Bush 
tax cuts may have promised.
  West Virginia has little or no public transportation, so for most 
West Virginians the family car is the only lifeline to jobs, school, 
shopping, and healthcare. The relatively long distances and unforgiving 
topography that West Virginians have to travel in the normal course of 
their lives makes an increase of just a few cents at the pump a 
crushing blow to withstand. Today, from Beckley to Martinsburg, West 
Virginians can expect to pay close to, or in most cases, well over $2

[[Page S5613]]

per gallon. In East Lynn, WV they are paying $2.19 a gallon; in 
Morgantown they're paying $2.11 a gallon; and in Ripley, my 
constituents are lucky to find gas going for $2.05 a gallon.
  In 2003, 56 percent of West Virginians received less than $100 from 
the 2003 tax bill. This ``relief'' is offset greatly by the current 
trend in gas prices. The current price spikes mean that the majority of 
West Virginians will end up spending at least three times as much 
buying gasoline than in any tax return they will have received.
  And it is not just short-term affects, or the concerns of our 
constituents that we have to contend with, but long term consequences 
as well. On May 12, the International Energy Agency (IEA) released a 
study stating that higher oil prices have hurt the global economy and 
will further depress economic growth, fuel inflation, and increase 
unemployment over the next 2 years if the prices stay near current 
levels.
  Knowing all of this, the Bush administration has yet to even address 
the explosion of high gasoline prices here at home. In fact, Scott 
McClellan, the White House Press Secretary said today that ``We will 
continue to do what we've been doing that is to stay in close contact 
with producers around the world to urge them not to take action that 
would harm our economy or hurt consumers here in America.'' This means 
that the administration is content with the status quo and in doing 
more of the same. That is why I stand with my colleagues in agreement 
with this resolution on our Nation's oil reserves.
  This resolution does three things: one) It asks the President to 
confront OPEC directly; two) it asks the President to have the Attorney 
General and the Federal Trade Commission exercise vigorous oversight 
over the oil markets to protect the American people from price gouging; 
and three) it asks the President to suspend deliveries of oil to the 
SPR and release a million barrels of oil per day from the SPR for 30 
days following the adoption of this resolution. All of these actions 
would go a long way in reducing the burden of high gasoline prices on 
all Americans.
  We have faced similar circumstances before and taken action. Four 
years ago, President Clinton halted deposits to the national reserve 
and that action lowered the burden of high gasoline prices on the 
American people without compromising our country's stockpile of oil. 
The current administration needs to be engaged. It needs to take a role 
and provide leadership at a time when West Virginians and all Americans 
are feeling a pinch at that pump.

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