[Congressional Record Volume 150, Number 98 (Thursday, July 15, 2004)]
[Senate]
[Pages S8143-S8144]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           ORDER OF PROCEDURE

  Mr. REID. Mr. President, on behalf of the minority leader, we 
designate our time to Senator Kohl, 5 minutes; Senator Dorgan, 5 
minutes; Senator Conrad, 5 minutes; and Senator Cantwell, 15 minutes.
  The ACTING PRESIDENT pro tempore. Without objection, it is so 
ordered.
  Under the previous order, the Senator from Wisconsin is recognized.
  Mr. KOHL. Mr. President, I want to take a moment to address an issue 
of serious concern to families across the United States--the continued 
high cost of gasoline. Over the last few years, spring has always meant 
gas price spikes to southeastern Wisconsin. This year, that trend has 
gone nationwide, with consumers and businesses from coast to coast 
experiencing gas prices of over $2 a gallon.
  The current average price for a gallon of gas is $1.89, up 40 cents 
over last year. That means that a family owning one car can expect to 
spend an additional $286 this year on gas over last year. If a family 
has more than one car, then they are looking at almost an additional 
$600. With job losses plaguing the manufacturing sector and stagnant 
wages for those who have been lucky enough to keep their jobs, that 
kind of increase in the cost of transportation is a serious problem.
  And it is not only families who are feeling the pinch of high gas 
prices. Wal-Mart, the country's biggest retailer, has expressed concern 
that these higher fuel prices will result in lower sales--and in fact, 
the Commerce Department reported yesterday that retail sales saw their 
largest drop in 16 months. Our economy's health is dependent on 
consumer spending. If consumers are buying less because of high 
transportation costs, the family van will not be the only thing out of 
gas; our nascent economic recovery will also stall.
  Much of the gas money squeezed out of our economy heads to OPEC 
countries, the result of their blatant price fixing. To address that, 
Senator DeWine and I have introduced the ``No Oil Producing and 
Exporting Cartels Act'' or NOPEC. NOPEC will, for the first time, 
establish clearly and plainly that when a group such as the OPEC 
nations act together to restrict supply or set prices, they are 
violating U.S. law. The bill will not authorize private lawsuits, but 
it will allow the Attorney General or the FTC to file suit under the 
antitrust laws for redress. Our bill will also make plain that the 
nations

[[Page S8144]]

of OPEC cannot hide behind the doctrines of ``Sovereign Immunity'' or 
``Act of State'' to escape the reach of American justice. This 
legislation would be a powerful tool to combat the illegal price fixing 
behavior of OPEC, behavior that would be severely prosecuted if it 
happened inside the U.S. or was carried out by U.S. companies.
  Although OPEC is a big part of the problem of high gas prices, the 
lack of refining capacity across the country also contributes. Every 
day our economy demands almost nine million barrels of gasoline to keep 
the marketplace moving, but we lack enough oil refining capacity to 
meet the demand. Refineries are operating at 95 percent of capacity--
and so we are forced to import 1 million barrels of refined gasoline a 
day.
  The antitrust subcommittee on which I am the ranking member has 
looked into the issue of whether insufficient refining capacity is a 
manufactured crisis designed to raise prices by reducing the supply of 
refined product. No new refineries have been built in this country for 
25 years, while scores have been closed. Some believe that this has 
allowed the remaining refiners to keep gasoline prices abnormally high. 
We are going to have to be vigilant if we are to keep the short supply 
of refineries from allowing another Enron-like gouging of consumers.
  Indeed, I was gratified by the news last week that the FTC had begun 
a formal investigation into Shell's plans to close an important 
refinery in Bakersfield, CA, a refinery that produces 70,000 barrels of 
gasoline a day. Should the FTC conclude that the closure of this 
refinery results from efforts by Shell to control supply and raise 
prices, it must pursue all legal measures to protect consumers. The FTC 
must be tougher on all mergers in the oil and gas industry and act 
quickly and decisively to prevent oil companies from manipulating 
supply and prices. And Congress has important oversight 
responsibilities to make sure the FTC uses the powers we have given 
them.
  The high price of gas is an issue that affects everyone, but to those 
on the bottom of the economic ladder it can be devastating. It is a 
serious problem when--because of the cost of gas--getting to work, 
finding a new job, or visiting the grocery store or the doctor become a 
luxury out of the reach of working families. It is a serious problem 
that we need to address seriously--and there are simple steps, like 
some I have outlined today, that we can take this year. We can and 
should act--not sit on our hands while working families again reach for 
the bill.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from North Dakota.

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