[Congressional Record Volume 154, Number 84 (Wednesday, May 21, 2008)]
[Extensions of Remarks]
[Pages E984-E985]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




STRATEGIC PETROLEUM RESERVE FILL SUSPENSION AND CONSUMER PROTECTION ACT 
                                OF 2008

                                 ______
                                 

                               speech of

                            HON. PETER WELCH

                               of vermont

                    in the house of representatives

                         Tuesday, May 13, 2008

  Mr. WELCH of Vermont. Mr. Speaker, I thank Chairman Dingell for his 
leadership and commitment to getting gas prices under control.
  Mr. Speaker, I would like to submit this letter from Congressman Ron 
Kind for the Congressional Record. Mr. Kind has been a leader on this 
issue starting in January when he sent this letter to the President 
urging him to take action in suspending shipments to the SPR.
  Mr. Speaker, in the face of skyrocketing fuel costs and growing 
economic concerns, Congress must take action.
  Today we take the small but important step of temporarily suspending 
the fill of the Strategic Petroleum Reserve. Taking this action sends a 
strong message to the market that will lower fuel prices and provide 
immediate relief to consumers.
  With the price of gas today at nearly $4 a gallon and crude oil 
trading at a record high of $126 a barrel, we cannot continue the out-
dated policy of topping off a full SPR.
  Since 2002, the price of oil has risen a staggering $100 a barrel, 
and prices at the pump have more than tripled. We must stop taking 
70,000 barrels of oil off the market every day while hard working 
Americans are struggling to till their gas tanks.
  By continuing to top off our oil reserve, consumers are paying not 
once, but twice.
  Taxpayer dollars are being used to pay record high prices for SPR 
oil, while the act of buying that oil is actually driving gas prices 
higher.
  The reserve is currently 97 percent full and maintains a stockpile of 
over 700 million barrels of oil. By taking this action today, we can 
offer short term economic relief to the market and to all consumers.
  This is a short term solution, and by no means a replacement for the 
long term energy policy we need to end our dangerous and costly 
addiction to oil. Last year this Congress made real progress by 
increasing CAFE standards for the first time in 2 decades by committing 
to combat oil and market manipulation, promoting the use of more 
affordable American biofuels, and making large investments in renewable 
energy development.
  The U.S. consumes nearly 20 million barrels of oil a day. Prices are 
high in part because supply has not kept up with demand. The Department 
of Energy recently reported that suspension of shipments to the SPR 
could reduce prices by about $2 a barrel of oil and 5 cents per gallon 
of gasoline. Other experts have estimated that the suspension could 
diminish speculation in the market, and lower the price by anywhere 
from 5 to 25 cents a gallon.
  This action would provide real and immediate benefits. Twenty-five 
cents would add $300,000 to the bottom line of a local trucking company 
in my district. A rural school district in E. Montpelier, Vermont would 
save $30,000 in taxpayer financed busing costs. Families, workers, 
seniors and students need this relief.
  Over the last 8 months, the Bush administration has purchased over 10 
million barrels of oil to top off the SPR. In that same period of time 
the price of oil went from $40 a barrel to over $120.
  In 2006, facing record high oil prices President Bush said ``. . . by 
deferring deposits until the fall, we'll leave a little more oil on the 
market. Every little bit helps.'' Every little bit does help, and I 
urge my colleagues on both sides of the aisle to take this opportunity 
to provide them immediate relief.

                                    Congress of the United States,


                                     House of Representatives,

                                 Washington, DC, January 22, 2008.
     Hon. George W. Bush,
     The White House,
     Washington, DC.
       Dear Mr. President: I write to urge the U.S. Department of 
     Energy to suspend oil shipments to the Strategic Petroleum 
     Reserve (SPR) to allow more oil to remain on the market and 
     available to consumers. This action is necessary to address 
     record prices and stimulate a precarious economy.
       While the escalating cost of crude oil has made headlines 
     for the past several years, never before have we seen as dire 
     a situation for consumers as the one we are experiencing now. 
     Even the price spikes following Hurricane Katrina did not 
     come close to the $100 per barrel oil we saw last month, yet 
     your Administration wisely responded to that crisis by 
     temporarily suspending purchases for the SPR. That action was 
     successful in providing the type of immediate, targeted 
     relief we need now.
       The writing is on the wall: our country is clearly in 
     danger of recession. Unemployment is up, retail sales are 
     slowing, housing prices continue to slide, and consumers and 
     lenders alike continue to suffer the fallout from the sub-
     prime mortgage crisis. Average families are feeling the 
     effects more painfully than ever as they experience the worst 
     inflation in 17 years, largely because of escalating food and 
     fuel prices.
       Suspending the 12.3 million barrels of oil scheduled to be 
     delivered to the SPR over the next six months is a simple 
     step your Administration can take immediately to lower gas 
     prices, put money directly into the wallets of Americans, and 
     save taxpayer dollars. Congressional investigations and 
     independent experts have found that purchasing

[[Page E985]]

     oil for the SPR drives up gas prices, and costs taxpayers 
     billions. This is money that working men and women cannot put 
     into other parts of the economy, harming American families 
     and businesses alike.
       While I recognize this action should not be taken as a 
     means of reducing prices in the long run, it can have 
     temporary benefits that could go a long way to helping 
     American families who are being squeezed, and to stimulate 
     the economy. I urge you to take this important step.
           Sincerely,
                                                         Ron Kind,
     Member of Congress.

                          ____________________