[Congressional Record Volume 152, Number 47 (Wednesday, April 26, 2006)]
[Senate]
[Pages S3528-S3530]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
GASOLINE PRICES
Mr. REID. Mr. President, in Nevada, the average price of a gallon of
gasoline is $2.97. We know it is $3.10 a gallon elsewhere. And in other
places, it is higher than that. That 45-cent increase has caused
tremendous pain in Nevada and around the rest of the country. The
prices are going up and up and up. Talk to any Senator about the price
of gasoline.
I watched the evening news last night and they had a segment where
they talked about the booming business of pawnshops since the price of
gas has gone up. It showed people there pawning antique watches. One
man was pawning a watch he had that was 100 years old, which was his
grandfather's. Why? He had no money to get back and forth to work. They
are also pawning guitars and guns. One man even went in and pawned his
car. He got to drive it away, but he gave the title to the pawnshop.
That is the price of gasoline as reported on the national news.
It is not just Nevada, as indicated in the national news. Talk to any
Senator; they have similar stories. The average price of gas in
California is $3.14. In New York, it is $3.09. Here, in the District of
Columbia, it is $2.99. In Illinois, it is $2.96. Those are average
prices. Unfortunately, gas prices are expected to soar and increase at
least another quarter by this summer--that is, if nothing goes wrong.
There doesn't appear to be any relief in sight.
That is especially true if this President and this Republican
Congress have their way. Yesterday, the President said he had a four-
way plan. I don't come here to the floor every day just to say things
about the President, that I don't agree with him, because there is
nothing else to talk about. I come here because I believe I have an
obligation to the people of Nevada and all the people in this country
to call it the way I see it.
We went to the White House yesterday. I thought what the President
did in dealing with immigration was significant. I heard myself on the
morning news complimenting the President, as I should have. I cannot
compliment the President today because he is wrong on this gas
situation. What he did with his four-way plan is nothing. Most of it
has already been done, thanks to Democratic amendments in the Senate.
Other parts don't make a dent. For example, he talks about an
investigation. In the bill we passed in Commerce, State, Justice last
year, we passed what he says he wants done. It is the law of the land.
They are going to report sometime next month on their investigation.
The President said he is not going to pump 12 million barrels of oil
this summer into our Strategic Petroleum Reserve. Well, two things--
one, we are not buying oil to put in it now. We are not doing that now.
We use 21 million barrels of oil every day. Twelve million barrels
over the summer?
So what the President has done is not a serious attempt. What he
provided in his speech was not a solution to the energy crisis but
exactly what you would expect from a President who spent 5\1/2\ years
standing side by side with big oil in his Oval Office. And next to big
oil is an even bigger oil baron, the Vice President of the United
States.
America needs a new direction on energy. Our dependency on oil is
ruining our competitiveness, the balance of trade, damaging our
national security, and limiting freedom and opportunity. It is time to
change. We, the minority, want the American people to guide that
change. We have a plan for a better future, and it doesn't involve
Enron or the former CEO of Exxon.
I hope the Republican majority will work with us on this bill to give
consumers relief and security to America's long-term energy future.
The PRESIDENT pro tempore. The Senator from Illinois is recognized.
Mr. DURBIN. Mr. President, I salute my colleague, the leader on the
Democratic side, Senator Reid, for addressing the shortcomings of the
President's message yesterday.
People across America get this. They understand that every morning
when they go to fill up their tanks, it is costing them more money than
they ever imagined. Senator Reid, from Nevada, has referenced a
situation in his State where people are going to pawnshops and taking
valuable things they own, trying to come up with enough cash to keep
going.
We find in Illinois that we have what are called ``payday loans.'' I
don't know if you have it across the country. It is not an industry I
admire. It charges some of the highest interest rates to people who
have low credit ratings. We find people going into these payday loan
shops, borrowing against their next paycheck to buy gasoline for their
cars to go to work. This is obviously a desperate move by people who
have nowhere to turn.
We hear from the President that he is going to call on the Federal
Trade Commission to get tough. As Senator Reid said, we already
included that in the last Energy bill in a Democratic amendment offered
by Senator Stabenow of Michigan. It is in the bill. This is nothing
new. To hold back 1 day's investment of oil into the Strategic
Petroleum Reserve is not going to have a measurable impact on anything.
The simple fact is the President has to call the oil company
executives into his office, stare them in the eye, and tell them they
are destroying the American economy, they are killing jobs in America,
they are making farming unprofitable, and they are causing a hardship
to American families much greater than any tax rebate check sent
several years ago by this administration. Until the President stares
them in the eye and tells them he is going to take action against them,
they are going to continue to kite their profits at the expense of the
American workers and businesses.
That is why ExxonMobil had the largest profit in the history of
business in America in a quarter. It showed billions of dollars in
profit and then rewarded its retiring CEO for his fine job in running
up the price of gasoline and gave him a $400 million going-away gift.
That is some gold watch, isn't it? Mr. Raymond didn't even have to buy
a Powerball ticket, and he got $400 million. Why? Because we are paying
outrageous sums for gasoline at the pump. The oil companies blame
everybody--Hurricanes Katrina and Rita, OPEC--and they have all kinds
of explanations. But the bottom line is their profits are going through
the roof. Every morning in newspapers across America are full-page ads
saying: Don't hold against us that we are profitable; we are going to
do good things with the money you are sending us.
It doesn't work. They are crippling the economy. There are
indications on Capitol Hill that the oil industry executives got the
message yesterday.
Do you know what the announcement was this morning? The oil company
executives have announced that because of this concern across America
for rising gasoline prices, they have gotten the message. They are
going to invest $30 million in buying more lobbyists in Washington, DC.
That's right. The Hill newspaper this morning reports that the American
petroleum industry has decided they are going to buy $30 million worth
of lobbyists to roam and crawl through the Halls on Capitol Hill to
find their friends and to tell them this really isn't a problem.
You know what. Unfortunately, they may be successful. Just yesterday,
in the reconciliation bill, the House Republicans decided they did not
want to have taxes imposed on the oil companies. They want to take
these taxes off the oil companies. Why would you do that? The oil
companies have record profits. The money coming back from those profits
should be helping America and helping consumers. But with $30 million
more worth of lobbyists on Capitol Hill, I am afraid I know how this is
going to end--the special interests will win again, and the consumers
will lose.
I say to my colleague from Nevada, as we consider the issues that
face us, we believe--I hope he shares in that belief--that energy is a
critical issue. It is important not only to family budgets, it is
important to economic growth in America. And unless and until we have
the vision and leadership coming from the White House to stare down
these oil company executives and to set an agenda for energy
independence in America, it is my fear that we will continue to see
these crippling gasoline prices in Nevada and across Illinois.
[[Page S3529]]
Mr. REID. Mr. President, will the Senator yield for a question?
Mr. DURBIN. I will be happy to yield.
Mr. REID. Every day I get something called ``A Look at Today's
News,'' such as immigration and homeland security. But No. 1 on today's
news is energy.
Is the Senator aware that the L.A. Times headline today reads,
``Bush's Proposals Viewed as a Drop in the Oil Bucket''? Is the Senator
aware that the Washington Post headline today is, ``GOP Blocks Measures
Boosting Taxes on Oil Companies' Profits,'' and the New York Daily News
headline is, ``Midterm Elections Fuel His''--meaning the President's--
``Sudden Flip-Flop,'' and the Hill newspaper, about which the Senator
has already commented, headline is, ``Oil Industry Prepares $30 Million
Fight Back''? Is the Senator aware of these headlines?
Mr. DURBIN. I am aware of that. I know the Democratic leader is also
aware that two of our colleagues came to the floor yesterday and asked
for emergency consideration of measures to deal with this right now,
things that could make a difference.
Senator Menendez of New Jersey came to the floor and asked that we
have a tax holiday so that the money can be given back to consumers
across America that is being charged them now at the pump.
Senator Cantwell of Washington came to the floor and asked for us to
consider an antigouging amendment so we can say that if oil companies
are found guilty of gouging, they will be asked to pay the price in the
courts and through the regulatory agencies.
The Senator from Nevada realizes that despite the best efforts of our
colleagues, both of them were ruled out of order. The obvious question
is: If we can't consider those measures on this bill, how soon will the
Republican leader of the Senate move to legislation that deals with
this immediately? The idea that we will get to this in 2, 3, 4, 5
months is not acceptable where I live. Families I know and businesses I
know cannot wait. They expect this Congress to respond.
I know the Senator from Nevada realizes within our caucus there will
be many other proposals that might deal with this issue. Senator Nelson
of Florida has come up with a proposal as well to deal with this issue.
We had Senator Stabenow come to the floor. Why aren't we dealing with
this on an emergency basis? It is truly an emergency across America
when it comes to our economy.
Mr. REID. Mr. President, will the Senator yield for a question?
Mr. DURBIN. I will be happy to yield.
Mr. REID. Mr. President, is the Senator aware that the profits these
massive international companies that are controlling the cost of
gasoline and fuel oil in this country are theirs only? If one goes to
their corner service station or convenience store that pumps gas, does
the Senator realize they only make about 4 cents a gallon on each
gallon of gas, even though the consumer may be paying $3.20 for that
gallon of gas?
This is all a gouge, an obscene gouge by these massive international
corporations. Even the people who retail their product make no money.
Is the Senator aware of that fact?
Mr. DURBIN. Mr. President, I am aware of it, and I feel sorry for the
people who run these gas stations. One can imagine what their customers
say when they come to the counter. They are outraged over the increase
in gasoline prices, angry over this situation and the impact it is
going to have on their lives. And, of course, they try to take it out
on the first person they see, and that happens to be an innocent
bystander, the person running the gasoline station.
What troubles me as well, instead of moving toward energy
independence, we have resistance for putting in place facilities so
that alternative fuels can be used by consumers across America.
Senator Obama of Illinois, my colleague, has introduced legislation
to put E-85--that means it is a fuel you can use in your car that is 85
percent alcohol fuel, 85 percent ethanol, cheaper now than a gallon of
petroleum-based gasoline. The oil companies have been very slow to put
those facilities in the gas stations even across Illinois, the largest
producer of ethanol in the Nation.
What Senator Obama has pushed for--and I agree--is that we need to
have the oil companies opening up opportunities so that consumers can
at least fight back.
If you have a car or a truck that can burn this environmentally
friendly and energy-efficient ethanol, then you ought to have an option
to fill your tank that way. Sadly, they don't. The oil companies have
been very slow and dragging their feet in giving consumers that option.
Why? Because they don't make the ethanol and, as a consequence, they
don't want to promote a product from which they cannot profit. That day
is over. We have to move toward alternative fuels.
Isn't it amazing that the country of Brazil decided more than 10
years ago they were not going to be held hostage to foreign oil and
they would become energy independent. Making that decision with the
right leadership at the top, they are moving soon to the day where they
don't have to worry about foreign dictators pushing them around like
chumps when it comes to oil supplies.
How did they do this? They went to alcohol fuel. They said: We can
fuel an economy with home-grown energy.
We can do the same thing in America. How important is it? Take a look
at the morning paper, the Washington Post, and you will see a story
about Iran. The man who runs this country of Iran is a very strange
man. He makes pronouncements about the world and history which are
nothing short of bizarre. Yet he sits on top of 70 million people and
some of the largest oil reserves in the world.
What did he say about the pressure from the United States to stop him
from building nuclear weapons?
Other Iranian officials said the Islamic republic would
hide its nuclear program and curtail its oil production if
foreign governments took harsh actions against Iran for
failure to restrict its nuclear activities.
In most places, this is known as blackmail--blackmail--that the
leader of Iran would say to us: If you put pressure on us to stop
building nuclear weapons, we are going to hold back your oil. You think
$4 a gallon is expensive? How about $5? That is the kind of showdown we
face because these petro-dollar-based puppet dictators around the world
have us over an oil barrel.
When are we going to change? When will we find leadership from this
President and this administration to move us to energy independence?
When will we have fuel efficiency for cars and trucks instead of seeing
it go the wrong way--21 miles a gallon and lower? Why aren't we moving
toward the day when it is 35 miles per gallon and more?
When I offered an amendment for CAFE standards in the last bill, I
had very little support. I didn't even have everybody on my side of the
aisle, to be perfectly honest with you. But I wonder what would happen
if that amendment came back today. People need to understand we need
fuel-efficient vehicles, we need alternative fuels, we need
conservation.
To think we signed an energy bill last August creating a national
energy policy and have had nothing but energy crises ever since is an
indication we need to go back to the drawing board. We need to reassess
where we are in this world economy, and we need to understand that the
fault at the pump is not because of an addiction to oil by consumers.
The fault at the pump is because of the greed of oil companies and the
lack of vision and leadership at the top in our American Government.
We need to have a new direction, a significant change in direction if
we are going to become energy independent in the near future and if we
are going to see gasoline prices come down before they cripple the
American economy.
I know of what I speak. If you go to O'Hare Airport, you will find it
to be the home of United Airlines, now emerging from bankruptcy. It was
a painful process. Workers and retirees gave up a lot to get through
bankruptcy. And the major reason that airline went into bankruptcy? The
cost of fuel. Other airlines face the same situation--reducing their
workforce, reducing their pay, reducing retirement, reducing health
benefits because the price of fuel went up. While they are suffering,
ExxonMobile has record-breaking profits.
What is wrong with this picture? Where is the fairness? Where is the
equity? Where is the President? We need
[[Page S3530]]
voices here that speak to these oil company executives about a new
course of action.
Gasoline prices across America are intolerable. We can go through
community after community, and you can see it when you go home, as I
did this last work period, the Easter work period, back in the State of
Illinois. People understand this one. They understand there is a
failure in leadership. If we lament the fact that people don't get up
and vote and don't seem to care about the state of our Government, it
is because when they are in trouble, the Government is not there.
The simple speech made by the President yesterday is not the answer,
but it is the beginning, I hope, of a dialog, a bipartisan dialog to
move us in a new direction.
I hope the President not only invites the oil company executives in
to tell them they are destroying the American economy but also invites
people from both sides of the aisle in, in a bipartisan dialog, about a
new direction. To give a speech on Earth Day about hydrogen-powered
cars is an interesting, long-term concept. It is certainly not a near-
term or medium-term answer to what we are faced with in America.
We have to have a new approach and a new direction when it comes to
our energy. There are ways to do it. Lessening our dependence on
foreign oil, an amendment offered by Senator Cantwell of Washington to
the Energy bill, was rejected on a partisan vote. It said: Why doesn't
America set a goal of reducing our dependence on foreign oil by at
least 50 percent over the next few years? It was rejected on a partisan
basis. Everyone on the other side of the aisle voted against it. Why?
In my mind, that is the beginning of energy independence and a stronger
American economy.
Mr. President, I yield the floor.
The PRESIDING OFFICER (Mr. Vitter). Who yields time?
The Senator from New Mexico is recognized.
Mr. DOMENICI. Parliamentary inquiry: How much time do we have now?
The PRESIDING OFFICER. Fifteen minutes remain on the majority side.
Mr. DOMENICI. Mr. President, I understand I will get a part of that
time, and I will yield part of that time to the Senator from Alaska
when she arrives.
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