[Congressional Record (Bound Edition), Volume 146 (2000), Part 1]
[Extensions of Remarks]
[Page 1339]
[From the U.S. Government Publishing Office, www.gpo.gov]



                        HOME HEATING OIL CRISIS

                                 ______
                                 

                        HON. FRANK PALLONE, JR.

                             of new jersey

                    in the house of representatives

                      Wednesday, February 16, 2000

  Mr. PALLONE. Mr. Speaker, the northeast States are experiencing--and 
suffering from--escalating home heating oil prices. I have heard from 
numerous constituents, including the Fuel Merchants Association of New 
Jersey, small fuel oil dealers, the New Jersey Motor Truck Association, 
and oilheat consumers affected by this crisis. I commend the 
administration for releasing $175 million in emergency LIHEAP funds to 
date and for working with northeast Congressmembers on this issue. I 
had written to President Clinton after he released an initial $45 
million in emergency funds, urging him to release additional funds, and 
I was pleased to learn that an additional $130 million were 
subsequently released.
  I also have urged the administration to press OPEC and our major 
foreign suppliers to increase their production of both crude oil and 
home heating oil exported to the United States in order to address this 
problem. In addition, I asked that the administration conduct an 
immediate investigation of alleged price gouging by the oil industry, 
or at least, that the administration investigate whether or not there 
was some deliberate attempt by the oil industry to join forces and 
illegally jack up prices. I also asked the administration to convene an 
emergency meeting as soon as possible with the major integrated oil 
companies and with other refiners in order to encourage an immediate 
increase in refining utilization to produce additional supplies of home 
heating oil. I understand that crude oil production is down and that 
there has been a 22-percent reduction in the stocks of distillate fuel 
oil from last year.
  But, more must be done. To this end, I also am organizing, along with 
my colleague, Representative Fossella, a bipartisan educational 
briefing, which is being held this Thursday at 3:30 in room HC-8 of the 
Capitol for Members and staff. The briefing will enable us to discuss 
longer-term options to prevent these types of crises in the future and 
methods for creating greater market certainty.
  As the cold weather continues, we must act immediately to combat this 
crisis facing many American families.

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