[Congressional Record (Bound Edition), Volume 152 (2006), Part 5]
[Senate]
[Pages 6015-6018]
[From the U.S. Government Publishing Office, www.gpo.gov]




                            GASOLINE PRICES

  Mr. REID. Mr. President, in Nevada, the average price of a gallon of 
gasoline is $2.97. We know it is $3.10 a gallon elsewhere. And in other 
places, it is higher than that. That 45-cent increase has caused 
tremendous pain in Nevada and around the rest of the country. The 
prices are going up and up and up. Talk to any Senator about the price 
of gasoline.
  I watched the evening news last night and they had a segment where 
they talked about the booming business of pawnshops since the price of 
gas has gone up. It showed people there pawning antique watches. One 
man was pawning a watch he had that was 100 years old, which was his 
grandfather's. Why? He had no money to get back and forth to work. They 
are also pawning guitars and guns. One man even went in and pawned his 
car. He got to drive it away, but he gave the title to the pawnshop. 
That is the price of gasoline as reported on the national news.
  It is not just Nevada, as indicated in the national news. Talk to any 
Senator; they have similar stories. The average price of gas in 
California is $3.14. In New York, it is $3.09. Here, in the District of 
Columbia, it is $2.99. In Illinois, it is $2.96. Those are average 
prices. Unfortunately, gas prices are expected to soar and increase at 
least another quarter by this summer--that is, if nothing goes wrong. 
There doesn't appear to be any relief in sight.

[[Page 6016]]

  That is especially true if this President and this Republican 
Congress have their way. Yesterday, the President said he had a four-
way plan. I don't come here to the floor every day just to say things 
about the President, that I don't agree with him, because there is 
nothing else to talk about. I come here because I believe I have an 
obligation to the people of Nevada and all the people in this country 
to call it the way I see it.
  We went to the White House yesterday. I thought what the President 
did in dealing with immigration was significant. I heard myself on the 
morning news complimenting the President, as I should have. I cannot 
compliment the President today because he is wrong on this gas 
situation. What he did with his four-way plan is nothing. Most of it 
has already been done, thanks to Democratic amendments in the Senate. 
Other parts don't make a dent. For example, he talks about an 
investigation. In the bill we passed in Commerce, State, Justice last 
year, we passed what he says he wants done. It is the law of the land. 
They are going to report sometime next month on their investigation. 
The President said he is not going to pump 12 million barrels of oil 
this summer into our Strategic Petroleum Reserve. Well, two things--
one, we are not buying oil to put in it now. We are not doing that now.
  We use 21 million barrels of oil every day. Twelve million barrels 
over the summer?
  So what the President has done is not a serious attempt. What he 
provided in his speech was not a solution to the energy crisis but 
exactly what you would expect from a President who spent 5\1/2\ years 
standing side by side with big oil in his Oval Office. And next to big 
oil is an even bigger oil baron, the Vice President of the United 
States.
  America needs a new direction on energy. Our dependency on oil is 
ruining our competitiveness, the balance of trade, damaging our 
national security, and limiting freedom and opportunity. It is time to 
change. We, the minority, want the American people to guide that 
change. We have a plan for a better future, and it doesn't involve 
Enron or the former CEO of Exxon.
  I hope the Republican majority will work with us on this bill to give 
consumers relief and security to America's long-term energy future.
  The PRESIDENT pro tempore. The Senator from Illinois is recognized.
  Mr. DURBIN. Mr. President, I salute my colleague, the leader on the 
Democratic side, Senator Reid, for addressing the shortcomings of the 
President's message yesterday.
  People across America get this. They understand that every morning 
when they go to fill up their tanks, it is costing them more money than 
they ever imagined. Senator Reid, from Nevada, has referenced a 
situation in his State where people are going to pawnshops and taking 
valuable things they own, trying to come up with enough cash to keep 
going.
  We find in Illinois that we have what are called ``payday loans.'' I 
don't know if you have it across the country. It is not an industry I 
admire. It charges some of the highest interest rates to people who 
have low credit ratings. We find people going into these payday loan 
shops, borrowing against their next paycheck to buy gasoline for their 
cars to go to work. This is obviously a desperate move by people who 
have nowhere to turn.
  We hear from the President that he is going to call on the Federal 
Trade Commission to get tough. As Senator Reid said, we already 
included that in the last Energy bill in a Democratic amendment offered 
by Senator Stabenow of Michigan. It is in the bill. This is nothing 
new. To hold back 1 day's investment of oil into the Strategic 
Petroleum Reserve is not going to have a measurable impact on anything.
  The simple fact is the President has to call the oil company 
executives into his office, stare them in the eye, and tell them they 
are destroying the American economy, they are killing jobs in America, 
they are making farming unprofitable, and they are causing a hardship 
to American families much greater than any tax rebate check sent 
several years ago by this administration. Until the President stares 
them in the eye and tells them he is going to take action against them, 
they are going to continue to kite their profits at the expense of the 
American workers and businesses.
  That is why ExxonMobil had the largest profit in the history of 
business in America in a quarter. It showed billions of dollars in 
profit and then rewarded its retiring CEO for his fine job in running 
up the price of gasoline and gave him a $400 million going-away gift. 
That is some gold watch, isn't it? Mr. Raymond didn't even have to buy 
a Powerball ticket, and he got $400 million. Why? Because we are paying 
outrageous sums for gasoline at the pump. The oil companies blame 
everybody--Hurricanes Katrina and Rita, OPEC--and they have all kinds 
of explanations. But the bottom line is their profits are going through 
the roof. Every morning in newspapers across America are full-page ads 
saying: Don't hold against us that we are profitable; we are going to 
do good things with the money you are sending us.
  It doesn't work. They are crippling the economy. There are 
indications on Capitol Hill that the oil industry executives got the 
message yesterday.
  Do you know what the announcement was this morning? The oil company 
executives have announced that because of this concern across America 
for rising gasoline prices, they have gotten the message. They are 
going to invest $30 million in buying more lobbyists in Washington, DC. 
That's right. The Hill newspaper this morning reports that the American 
petroleum industry has decided they are going to buy $30 million worth 
of lobbyists to roam and crawl through the Halls on Capitol Hill to 
find their friends and to tell them this really isn't a problem.
  You know what. Unfortunately, they may be successful. Just yesterday, 
in the reconciliation bill, the House Republicans decided they did not 
want to have taxes imposed on the oil companies. They want to take 
these taxes off the oil companies. Why would you do that? The oil 
companies have record profits. The money coming back from those profits 
should be helping America and helping consumers. But with $30 million 
more worth of lobbyists on Capitol Hill, I am afraid I know how this is 
going to end--the special interests will win again, and the consumers 
will lose.
  I say to my colleague from Nevada, as we consider the issues that 
face us, we believe--I hope he shares in that belief--that energy is a 
critical issue. It is important not only to family budgets, it is 
important to economic growth in America. And unless and until we have 
the vision and leadership coming from the White House to stare down 
these oil company executives and to set an agenda for energy 
independence in America, it is my fear that we will continue to see 
these crippling gasoline prices in Nevada and across Illinois.
  Mr. REID. Mr. President, will the Senator yield for a question?
  Mr. DURBIN. I will be happy to yield.
  Mr. REID. Every day I get something called ``A Look at Today's 
News,'' such as immigration and homeland security. But No. 1 on today's 
news is energy.
  Is the Senator aware that the L.A. Times headline today reads, 
``Bush's Proposals Viewed as a Drop in the Oil Bucket''? Is the Senator 
aware that the Washington Post headline today is, ``GOP Blocks Measures 
Boosting Taxes on Oil Companies' Profits,'' and the New York Daily News 
headline is, ``Midterm Elections Fuel His''--meaning the President's--
``Sudden Flip-Flop,'' and the Hill newspaper, about which the Senator 
has already commented, headline is, ``Oil Industry Prepares $30 Million 
Fight Back''? Is the Senator aware of these headlines?
  Mr. DURBIN. I am aware of that. I know the Democratic leader is also 
aware that two of our colleagues came to the floor yesterday and asked 
for emergency consideration of measures to deal with this right now, 
things that could make a difference.
  Senator Menendez of New Jersey came to the floor and asked that we 
have a tax holiday so that the money can be given back to consumers 
across America that is being charged them now at the pump.

[[Page 6017]]

  Senator Cantwell of Washington came to the floor and asked for us to 
consider an antigouging amendment so we can say that if oil companies 
are found guilty of gouging, they will be asked to pay the price in the 
courts and through the regulatory agencies.
  The Senator from Nevada realizes that despite the best efforts of our 
colleagues, both of them were ruled out of order. The obvious question 
is: If we can't consider those measures on this bill, how soon will the 
Republican leader of the Senate move to legislation that deals with 
this immediately? The idea that we will get to this in 2, 3, 4, 5 
months is not acceptable where I live. Families I know and businesses I 
know cannot wait. They expect this Congress to respond.
  I know the Senator from Nevada realizes within our caucus there will 
be many other proposals that might deal with this issue. Senator Nelson 
of Florida has come up with a proposal as well to deal with this issue. 
We had Senator Stabenow come to the floor. Why aren't we dealing with 
this on an emergency basis? It is truly an emergency across America 
when it comes to our economy.
  Mr. REID. Mr. President, will the Senator yield for a question?
  Mr. DURBIN. I will be happy to yield.
  Mr. REID. Mr. President, is the Senator aware that the profits these 
massive international companies that are controlling the cost of 
gasoline and fuel oil in this country are theirs only? If one goes to 
their corner service station or convenience store that pumps gas, does 
the Senator realize they only make about 4 cents a gallon on each 
gallon of gas, even though the consumer may be paying $3.20 for that 
gallon of gas?
  This is all a gouge, an obscene gouge by these massive international 
corporations. Even the people who retail their product make no money. 
Is the Senator aware of that fact?
  Mr. DURBIN. Mr. President, I am aware of it, and I feel sorry for the 
people who run these gas stations. One can imagine what their customers 
say when they come to the counter. They are outraged over the increase 
in gasoline prices, angry over this situation and the impact it is 
going to have on their lives. And, of course, they try to take it out 
on the first person they see, and that happens to be an innocent 
bystander, the person running the gasoline station.
  What troubles me as well, instead of moving toward energy 
independence, we have resistance for putting in place facilities so 
that alternative fuels can be used by consumers across America.
  Senator Obama of Illinois, my colleague, has introduced legislation 
to put E-85--that means it is a fuel you can use in your car that is 85 
percent alcohol fuel, 85 percent ethanol, cheaper now than a gallon of 
petroleum-based gasoline. The oil companies have been very slow to put 
those facilities in the gas stations even across Illinois, the largest 
producer of ethanol in the Nation.
  What Senator Obama has pushed for--and I agree--is that we need to 
have the oil companies opening up opportunities so that consumers can 
at least fight back.
  If you have a car or a truck that can burn this environmentally 
friendly and energy-efficient ethanol, then you ought to have an option 
to fill your tank that way. Sadly, they don't. The oil companies have 
been very slow and dragging their feet in giving consumers that option. 
Why? Because they don't make the ethanol and, as a consequence, they 
don't want to promote a product from which they cannot profit. That day 
is over. We have to move toward alternative fuels.
  Isn't it amazing that the country of Brazil decided more than 10 
years ago they were not going to be held hostage to foreign oil and 
they would become energy independent. Making that decision with the 
right leadership at the top, they are moving soon to the day where they 
don't have to worry about foreign dictators pushing them around like 
chumps when it comes to oil supplies.
  How did they do this? They went to alcohol fuel. They said: We can 
fuel an economy with home-grown energy.
  We can do the same thing in America. How important is it? Take a look 
at the morning paper, the Washington Post, and you will see a story 
about Iran. The man who runs this country of Iran is a very strange 
man. He makes pronouncements about the world and history which are 
nothing short of bizarre. Yet he sits on top of 70 million people and 
some of the largest oil reserves in the world.
  What did he say about the pressure from the United States to stop him 
from building nuclear weapons?

       Other Iranian officials said the Islamic republic would 
     hide its nuclear program and curtail its oil production if 
     foreign governments took harsh actions against Iran for 
     failure to restrict its nuclear activities.

  In most places, this is known as blackmail--blackmail--that the 
leader of Iran would say to us: If you put pressure on us to stop 
building nuclear weapons, we are going to hold back your oil. You think 
$4 a gallon is expensive? How about $5? That is the kind of showdown we 
face because these petro-dollar-based puppet dictators around the world 
have us over an oil barrel.
  When are we going to change? When will we find leadership from this 
President and this administration to move us to energy independence? 
When will we have fuel efficiency for cars and trucks instead of seeing 
it go the wrong way--21 miles a gallon and lower? Why aren't we moving 
toward the day when it is 35 miles per gallon and more?
  When I offered an amendment for CAFE standards in the last bill, I 
had very little support. I didn't even have everybody on my side of the 
aisle, to be perfectly honest with you. But I wonder what would happen 
if that amendment came back today. People need to understand we need 
fuel-efficient vehicles, we need alternative fuels, we need 
conservation.
  To think we signed an energy bill last August creating a national 
energy policy and have had nothing but energy crises ever since is an 
indication we need to go back to the drawing board. We need to reassess 
where we are in this world economy, and we need to understand that the 
fault at the pump is not because of an addiction to oil by consumers. 
The fault at the pump is because of the greed of oil companies and the 
lack of vision and leadership at the top in our American Government.
  We need to have a new direction, a significant change in direction if 
we are going to become energy independent in the near future and if we 
are going to see gasoline prices come down before they cripple the 
American economy.
  I know of what I speak. If you go to O'Hare Airport, you will find it 
to be the home of United Airlines, now emerging from bankruptcy. It was 
a painful process. Workers and retirees gave up a lot to get through 
bankruptcy. And the major reason that airline went into bankruptcy? The 
cost of fuel. Other airlines face the same situation--reducing their 
workforce, reducing their pay, reducing retirement, reducing health 
benefits because the price of fuel went up. While they are suffering, 
ExxonMobile has record-breaking profits.
  What is wrong with this picture? Where is the fairness? Where is the 
equity? Where is the President? We need voices here that speak to these 
oil company executives about a new course of action.
  Gasoline prices across America are intolerable. We can go through 
community after community, and you can see it when you go home, as I 
did this last work period, the Easter work period, back in the State of 
Illinois. People understand this one. They understand there is a 
failure in leadership. If we lament the fact that people don't get up 
and vote and don't seem to care about the state of our Government, it 
is because when they are in trouble, the Government is not there.
  The simple speech made by the President yesterday is not the answer, 
but it is the beginning, I hope, of a dialog, a bipartisan dialog to 
move us in a new direction.
  I hope the President not only invites the oil company executives in 
to tell them they are destroying the American economy but also invites 
people from

[[Page 6018]]

both sides of the aisle in, in a bipartisan dialog, about a new 
direction. To give a speech on Earth Day about hydrogen-powered cars is 
an interesting, long-term concept. It is certainly not a near-term or 
medium-term answer to what we are faced with in America.
  We have to have a new approach and a new direction when it comes to 
our energy. There are ways to do it. Lessening our dependence on 
foreign oil, an amendment offered by Senator Cantwell of Washington to 
the Energy bill, was rejected on a partisan vote. It said: Why doesn't 
America set a goal of reducing our dependence on foreign oil by at 
least 50 percent over the next few years? It was rejected on a partisan 
basis. Everyone on the other side of the aisle voted against it. Why? 
In my mind, that is the beginning of energy independence and a stronger 
American economy.
  Mr. President, I yield the floor.
  The PRESIDING OFFICER (Mr. Vitter). Who yields time?
  The Senator from New Mexico is recognized.
  Mr. DOMENICI. Parliamentary inquiry: How much time do we have now?
  The PRESIDING OFFICER. Fifteen minutes remain on the majority side.
  Mr. DOMENICI. Mr. President, I understand I will get a part of that 
time, and I will yield part of that time to the Senator from Alaska 
when she arrives.

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