[Congressional Record (Bound Edition), Volume 153 (2007), Part 1]
[House]
[Pages 989-990]
[From the U.S. Government Publishing Office, www.gpo.gov]




                               GAS PRICES

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Michigan (Mr. Stupak) is recognized for 5 minutes.
  Mr. STUPAK. Mr. Speaker, I rise to commend the new Democratic 
Congress

[[Page 990]]

which will finally address high energy prices.
  Many Americans have a hard time understanding what often seems like 
arbitrary reasons for fluctuations in gas prices. As the chairman of 
the Energy and Commerce Subcommittee on Oversight and Investigations, I 
look forward to bringing transparency to the oil and gas markets to 
clarify their effect on gas prices.
  A recent example of confusing market behavior was in September and 
October of 2006, just before the November elections. Gas prices dropped 
an average of 60 cents per gallon. This 60-cent drop in gas prices 
occurred despite the fact that there were pipeline disruptions in 
Alaska and indications that OPEC would cut oil production.
  While gas prices dropped 60 cents a gallon in September and October, 
crude prices only dropped 10 cents. For years, the American Petroleum 
Institute, API, the oil companies' main lobbying group, spent millions 
of dollars on public relations campaigns convincing the American people 
that big oil companies are victims of international crude oil prices 
and have little to say in the final price of gasoline.
  API insists a price of a gallon of gas is directly related to the 
price of a barrel of crude oil. Yet before the election we have a 60-
cent per gallon drop in gas prices and only a 10 percent drop in the 
price of crude.
  Consumer advocates have accused oil companies of purposely reducing 
gas prices in the months before the election to help Republican 
candidates. Earlier this month, National Public Radio featured a 
representative from the Foundation for Taxpayer and Consumer Rights who 
argued oil companies intentionally reduced the price of gas to 
influence the November elections.
  After the elections, gas prices have increased an average of 15 cents 
a gallon. Oil companies were able to significantly reduce the price of 
gas in September-October, then increase the price right after the 
election, without a corresponding change in the price of crude oil.
  This is not the first time oil companies have been accused of 
manipulating gas prices. Internal memos from several oil companies 
written in the 1990s have revealed that big oil companies limit 
refinery capacity in the United States to control the supply, cost, and 
price of gasoline.
  After Hurricane Katrina, the government found that refiners, 
wholesalers, and retailers charged significantly higher prices that 
were not the result of either increased costs or market trends. 
However, because there is no Federal energy price-gouging law in place, 
the Federal Trade Commission cannot even prosecute this price-gouging 
practice.
  For too long, oil companies have benefited from tax breaks, 
government subsidies, and lack of oversight. At the same time, oil 
companies have made record profits at the expense of the American 
people. Next week, the U.S. House of Representatives will consider 
legislation to end the tax breaks and special subsidies for Big Oil.
  Rather than helping the oil companies' bottom line, these tax breaks 
and subsidies will be reallocated to promote alternative energy sources 
to end our Nation's addiction to oil.
  Later this year, I look forward to having an open and honest debate 
on my legislation to create a Federal law against price gouging for 
gasoline, natural gas, propane, and other fuel. I will continue to work 
towards greater oversight for oil and gas trading, especially off-
market trades, known as OTC trades.
  I will be reintroducing my legislation, the Prevent Unfair 
Manipulation of Prices Act, to improve oversight of oil trades and 
strengthen penalties for traders who attempt to illegally manipulate 
these markets.
  Under the Republican leadership, the oil companies enjoyed record 
profits while Americans suffered with record high gas prices, minimal 
oversight, and price manipulation. The American people have now chosen 
a new direction, electing Democrat majorities in both the House and the 
Senate.
  I look forward to being able to address high energy prices, to stop 
price gouging, market manipulation, and to stand up for the American 
consumer.

                          ____________________