[Public Papers of the Presidents of the United States: WILLIAM J. CLINTON (2000, Book II)]
[September 23, 2000]
[Pages 1907-1909]
[From the U.S. Government Publishing Office www.gpo.gov]



Remarks on the Strategic Petroleum Reserve and an Exchange With 
Reporters
September 23, 2000

    The President. Good morning. Yesterday I directed the Secretary of 
Energy to exchange 30 million barrels of crude oil from the Strategic 
Petroleum Reserve over the next 30 days.
    As it stands, overall heating oil inventories are more than 20 
percent lower than they were last year, 50 percent lower on the East 
Coast, more than 60 percent lower in New England. The underlying cause 
of low inventories is the high price of crude oil.
    The overriding purpose for our action is to increase supply and help 
consumers make it through the cold winter. Families shouldn't have to 
drain their wallets to drive their cars or heat their homes.
    I'd also note that this action will result in more oil in the 
reserve. This is a swap. And the reserve will be replenished along with 
a premium, further increasing our long-term protection against energy 
supply disruptions. This is the right thing to do. It's good energy 
policy, good national security policy, and good family policy.
    Today I'm announcing new actions to help make sure that heating oil 
is available and affordable for our families. First, I'm directing the 
Department of Health and Human Services to release $400 million in Low- 
Income Home Energy Assistance Program funds, the largest ever emergency 
funding release of its kind to help families who can least bear the 
burden of high energy prices this winter.
    Second, I'm asking the EPA to help States identify ways to use more 
and different kinds of home heating oil while minimizing environmental 
consequences. This could help to further build home heating oil 
inventories.
    Third, I am directing Federal agencies to make early contractual 
commitments to purchase heating oil throughout the winter so the 
wholesalers will have the confidence to build inventories in advance.

[[Page 1908]]

    Fourth, I'm asking State public utility commissions to ensure that 
factories and businesses that use heating oil as a backup fuel keep 
adequate reserves.
    And finally, Secretary Richardson will 
meet with the National Petroleum Council, an energy policy advisory 
committee, to discuss heating oil production this fall and winter. Taken 
together, these steps will enhance our Nation's energy security and help 
to cushion working families from high heating bills. It builds on our 
decision in July to establish a home heating oil reserve in the 
Northeast.
    Now, we've also taken some important steps to strengthen our long-
term energy policy. To ease reliance on imported oil, we've invested in 
new technologies to enhance recovery of domestic oil reserves, and they 
are quite promising. To promote clean energy alternatives, we've 
expanded research and development of solar, wind, biofuels, and other 
renewable resources.
    We have also expanded research in the development of alternative 
forms of engines, including fuel-cell engines and engines that run on 
both electricity and gasoline, or electricity and other fuels. To save 
energy and tax dollars, we have taken dramatic steps to reduce energy 
use in the Federal Government, America's largest consumer. By making our 
Federal buildings more energy efficient, we will reduce electricity 
consumption by 30 percent, saving taxpayers $800 million a year.
    We've adopted energy efficient standards for appliances and forged 
new alliances with industry, including the Partnership for a New 
Generation of Vehicles and the 21st Century Truck Initiative. We're on 
track to tripling the mileage of passenger vehicles and more than 
doubling the mileage of medium- and heavy-duty trucks. We have made 
headway. But too many critical elements of our energy strategy have been 
chopped, blocked, or ignored by the Republican majority in Congress.
    I proposed electricity restructuring legislation. They abandoned it. 
And for every new dollar we have sought to invest in clean, efficient 
sources of energy, they have provided the dime.
    Today I urge Congress to get off that dime and take action: Take up 
my energy budget initiatives and tax incentives to help families and 
businesses buy fuel-saving vehicles and energy-efficient office 
buildings and homes and appliances; fully fund development and research 
into clean energy technology; provide clear guidelines for using home 
heating oil reserves when we need to; reauthorize the strategic 
petroleum reserve; and stop trying to make this about drilling in the 
Arctic National Wildlife Refuge.
    We cannot achieve energy security by endangering the environment, 
denying critical funding, or delaying vital action. We ought to do 
something more than offer cold comfort to people who simply want a warm 
home.
    Once again, I ask Congress for its support. We can work together. 
There are many things that we can do. If you look--let me just emphasize 
this, because it always gets overlooked every time an energy issue comes 
up--just look at what we have done with immediately available 
technologies to reduce energy consumption in the Federal Government. If 
we did the same thing throughout the domestic and the business sectors 
of the American economy, using off-the-shelf technology with a 2 year or 
less payoff--if we did it throughout the economy, you would see reduced 
reliance on foreign oil, lower fuel bills, higher productivity, and more 
jobs in the American economy.
    But we need help from Congress to give people the incentives to do 
the kinds of things that we're already doing throughout the Federal 
Government and that many, but nowhere near enough, businesses and 
consumers are doing.
    So I hope we can get some action on the long-term issues as well. 
But I believe we have done the right thing with the petroleum reserve.
    Thank you.

2000 Election and Energy Policy

    Q. Mr. President, I was wondering how you would respond to critics, 
like to Speaker Hastert, Governor Bush, who say this is really politics; 
this is more about the ballot box than it is the gasoline prices?
    The President. Well, first I would say I doubt if they are relying 
on home heating oil this winter. If you look at it, the reason that the 
prices got so high is that the supplies got so low. And what we're 
trying to do here is to even out supply and price. We're in an unusual 
situation, I might add, where if you look at the projected price of oil 
for next spring, it's actually lower than it is now.
    Now, what does that indicate? If people believe that the price of 
oil is going to go down in several months, why is it so much higher

[[Page 1909]]

now? It must be because there is a supply shortage in the stocks and 
reserves. So what we decided to do, after debating this for weeks and 
looking at all of our options, was to have a release from the petroleum 
reserve, and to do it in the form of a swap. So we release the oil now, 
and then those who get it will replace it next spring when the oil is 
projected to be more plentiful and, therefore, much cheaper.
    So what we're trying to do is to compensate for the fact that the 
stocks are too low and the price is too high now and to get the oil back 
into the reserve in the springtime, when the stocks are supposed to be 
higher and the price is supposed to be lower. I think it's plainly a 
prudent thing to do.
    Who else had a question?

Oil Prices

    Q. When do you think prices are going to come down?
    The President. Well, I think--haven't they dropped almost $3 a 
barrel in the last 2 days? I think they've dropped quite a bit just in 
the last couple of days, and former Secretary Rubin used to say, markets 
go up, and markets go down; it's hard for me to know. All I can tell you 
is, I think this is a prudent thing to do to increase stocks for the 
winter and to try to make sure it has a moderating effect on prices, but 
basically, to deal with the supply issue. And normally, in a market 
situation, the price will follow. That's what I hope will happen here.
    But I will say again, I think it is important that we accelerate the 
long-term issues. But if you look at the things that are out there now 
that are available for us, if you look at how close we are to breaking 
the chemical barriers, to the efficient production of bio-fuels, and all 
these other things that we're working on--if you look at how close we 
are to having a truly affordable, efficient fuel-cell vehicle, all these 
things are out there. We should be accelerating efforts into where we 
know the future is. And if we do that, we will reduce the number of 
these instances that the United States and the world will face in the 
future.
    Thank you very much.

Martin Indyk

    Q. Can you say anything about Martin Indyk, sir?
    The President. No, I have nothing else to say, except I've got to go 
to California. If you want to come, you're welcome to do it. I think 
some of you are coming with me.

Note: The President spoke at 9:30 a.m. on the South Lawn at the White 
House prior to departure for Palo Alto, CA. In the exchange, reporters 
referred to Republican Presidential candidate Gov. George W. Bush of 
Texas; former Secretary of the Treasury Robert E. Rubin; and U.S. 
Ambassador to Israel Martin S. Indyk, whose security clearance was 
suspended on September 22 for improper handling of classified 
information.