[Congressional Record (Bound Edition), Volume 158 (2012), Part 3]
[Senate]
[Pages 3445-3446]
[From the U.S. 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

[[Page 3446]]

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.
  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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