[Congressional Record Volume 158, Number 42 (Wednesday, March 14, 2012)]
[Senate]
[Pages S1662-S1663]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
GASOLINE PRICES
Mr. SCHUMER. Mr. President, the big issue everyone is talking about
is gasoline prices. Obviously, they are a scourge on average families
and on our national economy. There are many long-term solutions we
debate: the pipeline, incentives for green energy, more exploration,
nuclear energy, and of course conservation--probably the No. 1 way to,
in the long term, reduce imports of foreign oil into the country and
reduce the price.
But everyone is asking, what are short-term solutions?
To me, there is obviously one that would matter more than all the
others and that has the best hope of getting something done. So 2 weeks
ago, in a letter to Secretary of State Hillary Clinton, I asked the
State Department to pressure the Government of Saudi Arabia to use its
excess oil capacities as a means to calm oil markets. It has been my
position that this is the quickest way to bring down gas prices, and
the reason is very simple. The No. 1 thing jacking up prices right now
is the fear in the markets that Iran will shut off its production.
We have an economic boycott, a majority of nations of the world, of
Iran to prevent them from going nuclear. What are they trying to do?
They are saber rattling: Squeeze us too hard, we are going to cut off
oil. In fact, they cut off oil sales to Britain and France, although
those are symbolic because Britain and France do not buy much Iranian
oil. But with Iran's saber rattling that they might well cut off oil
exports, the price has gone up and up and up. Those who speculate in
oil use that and probably have it go up even further.
So that is why I have been, for the last 2 weeks, suggesting the
Saudis say they will produce more oil and that they will replace every
barrel of production Iran takes off the market for the foreseeable
future with a new barrel. The Saudis of course can do that. The Saudis
have 2.8 million barrels of extra production, they and the Gulf States.
Iran's total sales to the rest of the world are 2.2 million barrels a
day. Therefore, they have the ability to do it.
Today I was pleased Saudi Arabia declared it will fill any oil gap as
a result of the Iran oil embargo. At the 13th International Energy
Forum in Kuwait, the largest gathering of oil-producing and consuming
countries, the Saudi oil minister, Ali al-Naimi, said the following:
``Saudi Arabia and others remain poised to make good any shortfalls--
perceived or real--in crude oil supply.''
Right after the Saudi oil minister made this announcement, prices
dropped 0.6 percent. My belief is that if the markets believe this is
real, the price will come down significantly further. So we are asking
the Saudis to repeat this promise because, make no mistake, the more
the Saudis repeat the promise to offset Iran's output, the more
explicit they are, the more emphatic they are, the more they assure the
markets they are for real and that this is not just a psychological
device to calm the markets for the moment, the more markets will calm
down more permanently and the more the price will come down.
I wish to compliment the Obama administration for doing tremendous
work behind the scenes. I have talked to many people in the
administration over the last few weeks and they assured me and told me
some details of what they were doing and their pressure has finally
gotten the Saudis to make this statement. This statement is a great
start, but as I said, it should be repeated, reemphasized, and
elaborated upon by the Saudis so the markets will be assured.
The President was right on money when he said we also need long-term
to our dependence on foreign oil. He is right that drilling alone will
not solve our problems. We are producing more domestic oil in the
United States than we have in 8 years, and we have discovered a huge
supply of natural gas. But we have to look at all fronts. We have to
look at green energy, wind, solar. There are tax breaks that encourage
these new industries that will employ thousands. We ought to pass them.
Our colleagues voted against them on this highway bill. That doesn't
make much sense. I, for one, would look at nuclear as something that
produces clean energy, that doesn't produce global warming. It has to
be safe. Of course, we have to continue to look to produce more oil.
I was one of six or seven on this side, actually--as the Senator from
Louisiana is importuning--who voted to open parts of the east gulf to
produce more oil and it has begun to do that and that will help.
The No. 1 one thing we have to do in the long run is conservation.
The fact that we are getting more miles per gallon by 2020 will reduce
our importation of foreign oil--which raises the price--by more than
1.1 million barrels a day. In fact, since we gave the President the
ability to increase those CAFE standards further, and he did it, the
prediction is, by 2030, we will not need to import any oil as our cars
get 45 and 50 miles a gallon and the demand for gasoline goes down. The
No. 1 reason we have to import oil is because of gasoline and diesel
fuel and airplane fuel. Most of our energy can come from natural gas
and can come from water power, wind power, and solar power.
[[Page S1663]]
The bottom line: This announcement is a good announcement. I hope the
markets will heed it. I hope the Saudis will repeat it. I hope, as a
result, the price of oil will come down. It is the best news on a very
bad front; that is, of rising gasoline prices, that we have had in a
very long time. Let us hope it brings together some good news.
I yield the floor and I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The legislative clerk proceeded to call the roll.
The PRESIDING OFFICER. The Senator from Texas.
Mr. CORNYN. Mr. President, I ask unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
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