The Congressional Record is a unique source of public documentation. It started in 1873, documenting nearly all the major and minor policies being discussed and debated.
“U.S. OIL RESERVES--BUY HIGH, SELL LOW?” mentioning the U.S. Dept. of Energy was published in the Extensions of Remarks section on pages E537-E538 on April 1, 1998.
The publication is reproduced in full below:
U.S. OIL RESERVES--BUY HIGH, SELL LOW?
______
HON. GEORGE MILLER
of california
in the house of representatives
Wednesday, April 1, 1998
Mr. MILLER of California. Mr. Speaker, the Department of Energy is about to sell off more than $207 million worth of oil owned by U.S. taxpayers from the Strategic Petroleum Reserve. At today's low prices, that means the United States would dump about 20 million barrels of oil on a market already awash with oversupply.
Congress created the Reserve in 1975 to avoid the devastating effects on our national security and our economy that could be caused by the kind of shortages that occurred when other oil-producing countries stopped producing in order to drive up the price of oil and gas.
Last year, Congress directed the DOE to sell over $200 million worth of oil--essentially covering the cost of operating the Reserve. But shouldn't we think about the wisdom of proceeding with this plan at this time?
Isn't it foolish to liquidate federal oil reserves now, when oil and gas are selling at very low prices? Even if the price of oil rebounds this year, we would still be selling these federal assets for far less than the $27 to $30 per barrel it cost us to acquire them. Secretary of Energy Federico Pena agrees, noting, ``This is the worst time to be selling oil out of the Strategic Petroleum Reserve.'' Good economics would suggest that we buy oil for the Reserve now--not sell it.
On March 26, the Senate accepted an amendment to its supplemental appropriations bill to rescind the sale. The House bill passed earlier this week does not rescind the sale. On behalf of taxpayers who stand to lose millions is this unwise liquidation proceeds, I would hope that the House conferees will accept the Senate position in Conference.
____________________
