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“STRATEGIC PETROLEUM RESERVE FILL SUSPENSION AND CONSUMER PROTECTION ACT OF 2008” mentioning the U.S. Dept. of Energy was published in the Extensions of Remarks section on pages E984-E985 on May 21, 2008.
The publication is reproduced in full below:
STRATEGIC PETROLEUM RESERVE FILL SUSPENSION AND CONSUMER PROTECTION ACT
OF 2008
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speech of
HON. PETER WELCH
of vermont
in the house of representatives
Tuesday, May 13, 2008
Mr. WELCH of Vermont. Mr. Speaker, I thank Chairman Dingell for his leadership and commitment to getting gas prices under control.
Mr. Speaker, I would like to submit this letter from Congressman Ron Kind for the Congressional Record. Mr. Kind has been a leader on this issue starting in January when he sent this letter to the President urging him to take action in suspending shipments to the SPR.
Mr. Speaker, in the face of skyrocketing fuel costs and growing economic concerns, Congress must take action.
Today we take the small but important step of temporarily suspending the fill of the Strategic Petroleum Reserve. Taking this action sends a strong message to the market that will lower fuel prices and provide immediate relief to consumers.
With the price of gas today at nearly $4 a gallon and crude oil trading at a record high of $126 a barrel, we cannot continue the out-
dated policy of topping off a full SPR.
Since 2002, the price of oil has risen a staggering $100 a barrel, and prices at the pump have more than tripled. We must stop taking 70,000 barrels of oil off the market every day while hard working Americans are struggling to till their gas tanks.
By continuing to top off our oil reserve, consumers are paying not once, but twice.
Taxpayer dollars are being used to pay record high prices for SPR oil, while the act of buying that oil is actually driving gas prices higher.
The reserve is currently 97 percent full and maintains a stockpile of over 700 million barrels of oil. By taking this action today, we can offer short term economic relief to the market and to all consumers.
This is a short term solution, and by no means a replacement for the long term energy policy we need to end our dangerous and costly addiction to oil. Last year this Congress made real progress by increasing CAFE standards for the first time in 2 decades by committing to combat oil and market manipulation, promoting the use of more affordable American biofuels, and making large investments in renewable energy development.
The U.S. consumes nearly 20 million barrels of oil a day. Prices are high in part because supply has not kept up with demand. The Department of Energy recently reported that suspension of shipments to the SPR could reduce prices by about $2 a barrel of oil and 5 cents per gallon of gasoline. Other experts have estimated that the suspension could diminish speculation in the market, and lower the price by anywhere from 5 to 25 cents a gallon.
This action would provide real and immediate benefits. Twenty-five cents would add $300,000 to the bottom line of a local trucking company in my district. A rural school district in E. Montpelier, Vermont would save $30,000 in taxpayer financed busing costs. Families, workers, seniors and students need this relief.
Over the last 8 months, the Bush administration has purchased over 10 million barrels of oil to top off the SPR. In that same period of time the price of oil went from $40 a barrel to over $120.
In 2006, facing record high oil prices President Bush said ``. . . by deferring deposits until the fall, we'll leave a little more oil on the market. Every little bit helps.'' Every little bit does help, and I urge my colleagues on both sides of the aisle to take this opportunity to provide them immediate relief.
Congress of the United States,
House of Representatives,
Washington, DC, January 22, 2008.Hon. George W. Bush,The White House,Washington, DC.
Dear Mr. President: I write to urge the U.S. Department of Energy to suspend oil shipments to the Strategic Petroleum Reserve (SPR) to allow more oil to remain on the market and available to consumers. This action is necessary to address record prices and stimulate a precarious economy.
While the escalating cost of crude oil has made headlines for the past several years, never before have we seen as dire a situation for consumers as the one we are experiencing now. Even the price spikes following Hurricane Katrina did not come close to the $100 per barrel oil we saw last month, yet your Administration wisely responded to that crisis by temporarily suspending purchases for the SPR. That action was successful in providing the type of immediate, targeted relief we need now.
The writing is on the wall: our country is clearly in danger of recession. Unemployment is up, retail sales are slowing, housing prices continue to slide, and consumers and lenders alike continue to suffer the fallout from the sub-prime mortgage crisis. Average families are feeling the effects more painfully than ever as they experience the worst inflation in 17 years, largely because of escalating food and fuel prices.
Suspending the 12.3 million barrels of oil scheduled to be delivered to the SPR over the next six months is a simple step your Administration can take immediately to lower gas prices, put money directly into the wallets of Americans, and save taxpayer dollars. Congressional investigations and independent experts have found that purchasing oil for the SPR drives up gas prices, and costs taxpayers billions. This is money that working men and women cannot put into other parts of the economy, harming American families and businesses alike.
While I recognize this action should not be taken as a means of reducing prices in the long run, it can have temporary benefits that could go a long way to helping American families who are being squeezed, and to stimulate the economy. I urge you to take this important step.
Sincerely,
Ron Kind,Member of Congress.
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