[Congressional Record (Bound Edition), Volume 150 (2004), Part 5]
[House]
[Pages 6410-6411]
[From the U.S. Government Publishing Office, www.gpo.gov]




                         OUR DEPENDENCE ON OPEC

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentlewoman from Ohio (Ms. Kaptur) is recognized for 5 minutes.
  Ms. KAPTUR. Mr. Speaker, it is very interesting to listen to some of 
the remarks on the floor this evening. We had a gentleman, one of our 
Members from California, say how good the economy looks to him. And yet 
if you read the newspaper today, U.S.A. Today indicates Gateway is 
going to be closing all of its stores around our country, the 
struggling PC computer maker, and laying off 2,500 more workers.
  In the same newspaper we see a headline, ``No Shortage of Oil, Saudi 
Arabia Says.'' Saudi Arabia sought to quiet critics of OPEC's decision 
this week to cut oil production, arguing there are ample supplies, 
despite decade-high gasoline prices. Their foreign affairs advisor to 
the Crown Prince said there is no shortage of crude oil.
  I would like to draw my colleagues' attention to this chart, which 
shows that the United States since the mid-1980s and every succeeding 
year has amassed more job loss and greater trade deficit than ever 
before in the history of our Nation. This year, the trade deficit is 
going to go over $580 billion. This is an unbelievable number. That 
means more imports coming into our country than our exports going out. 
We are exporting jobs and we are importing products from every other 
place in the world.
  Someone ought to really pay attention in the executive branch, and 
the Members of Congress who brag how great this is better pay attention 
to the fundamentals that are driving us in the wrong direction. One of 
those fundamentals involves rising gasoline prices and rising petroleum 
prices because we are not energy independent here at home. We need a 
President and we need a Congress that will make America energy 
independent again.
  Here is another chart. This chart shows over a period of 25 years 
every single year the amount of petroleum that we consume and how much 
every year comes from abroad. The Middle East, OPEC, controls half of 
what flows into this economy. Every time a U.S. consumer goes to the 
gas pump, at least 7 or 8 cents of what you spend per dollar for every 
gallon you buy goes to Saudi Arabia, a very undemocratic place, one of 
the worst dictatorships in the world, no matter how much sweetener they 
try to put on it; 2 or 3 cents goes to Kuwait and Iraq, all places 
without democratic governments in place.
  It has been happening for a long time. It just did not start. But it 
has been getting worse, and the job loss in our country has really been 
getting worse. Good jobs with benefits that people can depend upon, 
retirement programs that cannot be taken away, and a chance for 
children to go on to college without becoming debtors, the hole we have 
been digging has been getting deeper every year.
  A gentleman writes a letter to the editor today to U.S.A. Today. He 
is from out in Michigan. He says that everybody wants free trade, but 
it seems strange to me that the most powerful Nation on this earth can 
do nothing to stop the collusion, he says, among the organization of 
petroleum-exporting countries and our own oil companies to drive up the 
price of oil.
  Here in Washington last night I was watching the television, and 
Chevron-Texaco had this big ad about how great they were except for one 
thing, all that

[[Page 6411]]

oil comes from someplace else and contributes to this rising share of 
imported petroleum and to the amassing trade deficit that is a damper, 
a huge damper on creating wealth inside this economy because we are 
siphoning it out of our own pockets and giving it to someone else.
  Imagine if we put those dollars to work to create a new industry 
across rural America, the biofuels industry, where we ripen ethanol 
production, soy diesel production, at a level where our farmers could 
be earning money from the marketplace, not from the Federal Government 
subsidy that goes to them. Imagine if we really were serious about fuel 
cell production, imagine if we really tried to bring modern hydrogen 
production to this country and push our photovoltaic production from 
the sun, energy from the sun to the limit, to the limit.
  NASA has done a great job of helping us move the technology to where 
it is today, but that is where America needs to move. We do not have to 
have more job loss. We do not have to have rising trade deficits. We 
need a government in this country that is going to make us energy 
independent again and begin creating jobs here at home for the future.
  Mr. Speaker, I include for the Record additional extraneous material.

                   Pressure OPEC To Lower Gas Prices

       Everybody wants free trade. But it seems strange to me that 
     the most powerful nation on this earth can do nothing to stop 
     the collusion I see among the Organization of Petroleum 
     Exporting Countries and our own oil companies to drive up the 
     price of oil (``OPEC votes to cut oil output, starting 
     today,'' News, Thursday).
       Why can't the U.S. work with our non-OPEC industrialized 
     allies and other nations that also need a steady supply of 
     cheap petroleum and take retaliatory economic action by 
     withholding essential goods and services, or even military 
     action? We need to give the OPEC cartel a taste of its own 
     medicine.
                                                    Donald Seagle,
     Ishpeming, Mich.
                                  ____


                Gateway To Close All Stores, Fire 2,500

                         (By Michelle Kessler)

       Struggling PC maker Gateway said Thursday that it plans to 
     close all 188 of its retail stores and lay off 2,500 workers.
       The stores will close April 9, Gateway says. Its computers 
     will still be sold on Gateway's Web site and via phone.
                                  ____


                 No Shortage of Oil, Saudi Arabia Says

       Saudi Arabia sought Thursday to quiet critics of OPEC's 
     decision to cut oil production, arguing there are ample 
     supplies despite decade-high prices. ``There is no shortage 
     of crude oil,'' said Adel Al-Jubeir, foreign affairs adviser 
     to the Crown Prince of Saudi Arabia. ``High oil prices are 
     not good for consumers, and low oil prices are not good for 
     producers.'' The country also said it remains in contact with 
     President Bush. The 11-member Organization of Petroleum 
     Exporting Countries voted Wednesday to cut production 1 
     million barrels a day, angering U.S. lawmakers who partly 
     blame OPEC for record gasoline prices in the USA.
                                  ____


                 [From the Times of Oman, Apr. 3, 2004]

             Higher Oil Price To Take Economy to New Highs

                            (By K. Mohammed)

       The Sultanate's economy is poised for better performance 
     this year if the spiralling oil prices are any indication. 
     Omani crude price, the single most important factor which 
     drives the Omani economy, is currently staying at $31.44 per 
     barrel and the market expects crude prices to stay at the 
     current level in the rest of the year. According to 
     statistics, the Omani crude prices realised $29.91 per barrel 
     in January 2004, which is significantly higher compared to 
     prices realised last year. Last year, the government had 
     budgeted oil price at a conservative $20 per barrel but the 
     actual realisation was much higher at $27.84. This had 
     resulted in a substantial rise in government revenue with all 
     sectors of the economy witnessing significant growth in 2003.
       The government has budgeted Omani crude price at $21 for 
     the current fiscal (2004) but the actual realisation may be 
     much higher than the prices realised last year, considering 
     the present buoyancy in the international oil market. The 
     most heartening fact about AGCC economies, and Oman in 
     particular, is that international oil prices have been 
     staying above the Opec basket price band of $22-$28 per 
     barrel in the new year, significantly higher than the prices 
     achieved last year, and Opec is expecting a steady market 
     this year. International oil prices are currently staying at 
     around $34 a barrel.
       Considering that the oil production will be maintained at 
     the present level the prospects at the oil price front 
     remains brighter for the country.
       Government's revenue receipts and public spending are other 
     indicators of the economic growth. Last year, the corporate 
     sector fared well on account of increased public spending. 
     The government's actual public spending has increased from 
     RO2,367.9 million in 2002 to 2,638.5 million as at the end of 
     November 2003, an increase of 11.4 per cent. The budget for 
     the year 2004 has estimated total spending at RO3,425 
     million. The actual public finance deficit for the year 2002 
     had come down drastically to RO124 million from the budgeted 
     RO380 million. When government spending goes up the gross 
     domestic product (GDP) will expand, triggering increased 
     economic activity and generating more job opportunities and 
     more revenue for the government. The increased spending 
     coupled with the prevailing low interest rate scenario is 
     expected to give the much-needed impetus to economic growth 
     this year.
       Figures on the revenue receipt side looks rosier. As of 
     November-end 2003, the government's total revenue stood 8.7 
     per cent higher at RO2,942.5 million compared with RO2,705.9 
     million mainly on account of increased oil price realisation. 
     As the average price for Oman crude stood $29.16 a barrel in 
     December 2003, the government is expected to report a lower 
     actual deficit for the year 2003 as against the projected 
     RO470 million.
       The country saw inflation remaining below 1 per cent last 
     year. This year too, the inflation is expected to remain 
     below 1 per cent level. However, the weakening of the dollar 
     is a cause for concern as it may put downward pressure on the 
     local currency triggering a mild flare up in the prices of 
     euro-denominated goods and services. Like other AGCC 
     countries, Oman too imports from European countries and euro-
     denominated goods are bound to become costlier with the 
     weakening of the dollar.
       The increased activities in the non-oil sector, especially 
     a significant rise in LNG production will also contribute 
     much to the strengthening of the economy.
       Reflecting the pulse of the economy the local stock market 
     has scaled new highs. The Muscat Securities Market General 
     Price Index rose from 272.67 points as at the end of December 
     31, 2003 to 296.10 points on April 1, 2004, scoring 23.43 
     points. This shows a handsome gain of 8.59 per cent. The 
     buoyancy is also reflected in the various sector indices.
       On the economic reform front, a lot of action will be seen 
     in the rest of the year. As part of its commitments to the 
     WTO, the government is expected to divest a significant stake 
     in Omantel. Last month, the much-publicized initial public 
     offering of Al Maha Petroleum opened. The opening up of the 
     telecom sector will see a second GSM licensee entering the 
     market soon, paving the way for competition in the telecom 
     market with consumers ultimately emerging as the winner with 
     better and cheaper services.

               [From Reuters News Service, Apr. 2, 2004]

          Bush in Touch With Saudis, Non-OPEC on Oil--W. House

       Huntington, WV. (Reuters).--President Bush and the Saudi 
     crown prince have been discussing oil prices for some time, 
     and the administration is also talking with other OPEC and 
     non-OPEC oil producers, a White House spokesman said Friday.
       ``We remain actively engaged with our friends in OPEC and 
     other producers around the world to address these issues,'' 
     White House spokesman Scott McClellan told reporters. ``Bush 
     and the (Saudi) crown prince have been in touch on this 
     subject for a while now.''
       Earlier this week, OPEC agreed to a production cut of 1 
     million barrels per day despite Bush administration requests 
     to delay it.

     

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