[Congressional Record Volume 151, Number 149 (Thursday, November 10, 2005)]
[Senate]
[Page S12687]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. KOHL:
  S. 1996. A bill to authorize the Secretary of Energy to temporarily 
prohibit the exportation of a finished petroleum product or liquefied 
petroleum gas from the United States if the Secretary determines that 
the supply of the product or gas in any Petroleum Allocation Defense 
District has fallen or will fall below expected demand; to the 
Committee on Banking, Housing, and Urban Affairs.
  Mr. KOHL. Mr. President, I would like to address an issue that I know 
my constituents in Wisconsin are worried about; indeed, something that 
all Americans should be concerned about. On Tuesday, the Energy 
Information Administration (EIA) announced the most recent outlook for 
home heating costs. For the average family, the cost of heating oil 
will increase approximately $325. And for families relying on propane, 
they can expect to pay an increase of about $230. I would like to 
stress that this is the average; in some areas, the prices could be 
much higher. And while these increased costs will place an undue burden 
on all sectors of the economy, the heaviest toll will clearly be on 
middle and low-income families.
  Yesterday, executives from several major oil companies were called to 
Capitol Hill, to defend the nearly $33 billion they earned last 
quarter. The answers they gave, for why Americans could expect to pay 
significantly more to heat their homes this winter, often were directed 
at the economics of supply and demand. The Chairman and CEO of 
ConocoPhillips argued that prices are ``a function of longer-term 
supply-and-demand trends, and lost energy production during the recent 
hurricanes.'' John Hofmeister, the President of Shell Oil Company, told 
Senators that the industry is doing everything in its power to ``supply 
shortfalls.''
  Given the testimony of Mr. Hofmeister, I find it surprising to note 
that currently, American companies are actually exporting products that 
could be used for home heating. According to the EIA, between January 
and August 2005 more than 48 million barrels of refined product was 
exported out of the U.S. This amount is 24 times the size of what is 
stored in the Northeast Heating Oil Reserve. While some of this went to 
both Canada and Mexico, large quantities were also sent to Argentina, 
Chile, France and Peru.
  I believe my constituents would be shocked to hear that while the oil 
companies are blaming high prices on low supplies, they are also 
reaping the benefits of exporting home heating oil abroad. That is why, 
on November 4th, I, along with 11 of my colleagues, wrote to several of 
the major oil companies and refiners, asking them to voluntarily halt 
all unnecessary exports of products that could be used for home 
heating. Such action would not be without precedent: in 2000, some 
refiners, including Shell Oil, voluntarily suspended heating oil 
exports after consulting with then Energy Secretary Richardson. We have 
not yet heard a response from any of the companies.
  I remain hopeful that these companies will help American consumers by 
temporarily suspending their unnecessary exports. Yesterday's hearing, 
however, did not inspire confidence in the companies to act on behalf 
of consumers rather than profits. That is why I am introducing the Stop 
Heating Oil Exports bill today.
  My legislation would grant emergency powers to the Energy Secretary 
to halt all unnecessary exports in the face of a serious price spike or 
supply shortfall. It is that simple. If the Secretary finds that demand 
will heavily outpace supply, then he or she should be able to stop 
exports--thereby temporarily improving supply, and preventing a major 
price spike, such as the one we can expect this winter.
  Yesterday, the oil companies cautioned those of us in Congress 
against policy changes that would amount to long-term involvement in 
energy markets. I would assure these executives that my legislation is 
a simple, short-term answer that is designed to protect American 
consumers. The companies have a chance to do the right thing, to 
increase supply and avoid the significantly increased home heating 
prices that have been forecasted.
  I believe that in the future, if they fail to use such an 
opportunity, the Energy Secretary should have the power to intervene on 
behalf of consumers. I would remind my colleagues that in 2000, as many 
as 4 refiners voluntarily suspended exports, citing ``market 
conditions'' and the desire to ensure adequate supplies of home heating 
oil for the winter. And I would remind the President of Shell that his 
company was one of them.
  Americans across the country could face potentially life-threatening 
conditions this winter, when temperatures drop and home heating prices 
soar. I believe that the oil companies have it in their power to 
prevent such a crisis--if they fail to use it, I believe it is the 
responsibility of the Federal Government to protect American families. 
I ask unanimous consent that the text of our legislation be printed in 
the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1996

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Stop Heating Oil Exports Act 
     of 2005''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) according to the Energy Information Administration, 
     households heated primarily with heating oil can expect to 
     pay an average increase of $378, or 32 percent more than last 
     year, to heat their homes;
       (2) households relying on propane can expect to pay, on 
     average, $325 more this winter;
       (3) the National Oceanic and Atmospheric Administration 
     projects a 3.2-percent colder winter than last year, and if 
     colder weather prevails, home heating expenditures will be 
     significantly higher;
       (4) high home heating prices will disproportionately impact 
     moderate- and low-income families;
       (5) in October 2000, the Secretary of Energy, Bill 
     Richardson, successfully worked with major refiners to 
     temporarily halt heating oil exports, to ensure adequate 
     supplies of home heating oil for the winter;
       (6) between January and August 2005, refiners in the United 
     States have exported more than 48,000,000 barrels, or 
     2,000,000,000 gallons, of product that could be used for home 
     heating; and
       (7) at a time when consumers in the United States can 
     expect nearly double their home heating costs in 2004, 
     refiners in the United States should not be diminishing the 
     supply by exporting home heating products.

     SEC. 3. AUTHORITY TO TEMPORARILY PROHIBIT EXPORT OF CERTAIN 
                   PETROLEUM PRODUCTS.

       If the Secretary of Energy determines that the supply of a 
     finished petroleum product or liquefied petroleum gas in any 
     of the 5 Petroleum Allocation Defense Districts has fallen or 
     will fall below expected demand for the product or gas, the 
     Secretary may temporarily prohibit the exportation of the 
     product or gas from the United States.
                                 ______