[Congressional Record Volume 153, Number 166 (Tuesday, October 30, 2007)]
[Senate]
[Page S13574]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           RISING GAS PRICES

  Mr. LEAHY. Mr. President, oil prices closed at another record high 
yesterday over $93.50 a barrel. That is nearly triple the average price 
just 4 years ago, and we have reason to fear that oil may be on its way 
to over $100 a barrel and possibly to $120 a barrel. Gas prices are 
reportedly 65 cents a gallon higher than they were just a year ago. 
This is an unacceptable burden to hundreds of thousands of families 
across the country, and it harms American consumers as well as the 
American economy. This winter, the price of home heating oil will be a 
serious burden on thousands of Vermonters.
  The relentless rise in oil prices should be another clear signal that 
we need to redouble efforts toward energy independence. As we develop 
alternative energy sources, we must keep focus on the artificial 
manipulation of oil and gas prices today. Demand for oil is rising, but 
members of the Organization of the Petroleum Exporting Countries, or 
OPEC, continue to collude to prevent the supply from matching that 
demand. As the Centre for Global Energy summarized it: ``Without more 
oil from OPEC, prices will continue to rise over the winter.'' In a 
properly functioning market, OPEC members would compete to serve the 
demand, but OPEC acts outside the basic principles of competition.
  As the weather cools, rising prices for heating oil are an even 
greater cause for concern. Thousands of hard working Vermont families, 
seniors and disabled persons will experience considerable strain in 
coming months as they try to balance the cost of such necessities as 
home heating oil, prescription drugs and food on their tables. The 
Energy Information Administration forecasts that the average U.S. 
household will see a winter increase of 22 percent in heating-oil 
expenditures from last year. In fiscal year 2006, Congress appropriated 
over $3 billion for the critical Low Income Home Energy Assistance 
Program, LIHEAP. Yet in his fiscal year 2008 budget, President Bush has 
requested only half that amount, or $1.5 billion. While LIHEAP grants 
are decreasing, the number of applications is rising.
  The American consumer is being harmed for the benefit of oil 
producing cartels. This is just wrong. When the President took office, 
Americans could fill their cars, heat their homes, and run their 
businesses on gasoline that cost $1.45 a gallon. Today, fuel prices 
have skyrocketed to an average $2.87 a gallon. Prices will, at times, 
fall, but because fuel prices are not properly subject to competition 
oversight and enforcement, the American consumer will only benefit from 
lower prices when it serves some other purpose of the cartel and 
foreign governments.
  The administration must stop OPEC from artificially affecting prices 
in the United States. I joined Senator Kohl as an original cosponsor of 
his bipartisan NOPEC legislation that would hold accountable certain 
oil producing nations for their collusive behavior that has 
artificially reduced the supply and inflated the price of fuel.
  When entities engage in anticompetitive conduct that harms American 
consumers, it is the responsibility of the Department of Justice to 
investigate and prosecute. It is wrong to let members of OPEC off the 
hook just because their anticompetitive practices come with the seal of 
approval of national governments.
  It is time for the administration to take the side of American 
consumers, not the side of oil cartels. We cannot claim to be energy 
independent while we permit foreign governments to manipulate oil 
prices in an anticompetitive manner. Vermont families, and families 
across the country, need our help to make essential home heating more 
affordable this winter.

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