Release in Oil Stockpile Follows Bishop's Call for Action on Gas Prices

Press Release

Congressman Tim Bishop applauded the decision announced today to release 30 million barrels of oil from America's Strategic Petroleum Reserve in advance of the typical summer spike in gas prices. Bishop has strongly urged President Obama to tap the SPR to combat high prices and recently introduced legislation that would expand the President's authority to release oil reserves to combat market manipulation and curb speculation.

"Releasing oil reserves is one of our most effective short-term weapons to lower gas prices," said Congressman Bishop. "Every day at the pump, Americans are feeling the pinch of market speculators, big oil companies and petro-dictators. With gas prices continue to soar well over $4 a gallon, it's about time we fight back. Relieving the strain of high gas prices on family budgets will help reignite the economic recovery."

In all, the U.S. and its partners in the International Energy Agency will release a total of 60 million barrels of oil onto the world market over the next 30 days to offset the disruption in the oil supply caused by unrest in the Middle East. America's SPR is currently at a historically high level with 727 million barrels.

Currently, the President has the authority to release oil from the SPR only in the case of serious disruptions in production. Energy Secretary Steven Chu announced that today's action was in response to supply disruptions in Libya and other countries.

Bishop has sponsored the Taxpayer and Gas Price Relief Act (H.R. 1748), which would expand the authority of the President to release oil from the SPR to combat market manipulation and limit excessive speculation, which Goldman Sachs estimated adds $25-30 to the price of each barrel of oil. In addition, Bishop's bill empowers the Federal Trade Commission (FTC) and state attorneys general to institute civil and criminal penalties for fuel price gouging during periods proclaimed by the President as an international crisis affecting oil markets, and could also apply to speculation in the oil futures market. It also ends corporate welfare for the Big Five oil companies, reforms the royalty system for drilling on America's public lands, and reduces the deficit by nearly $31 billion over ten years.

"The President needs expanded authority to scare off speculators that profit from the pain of Americans at the pump," said Bishop. "Today's action is welcome and should have a quick effect, but the delay in our government's response shows we need more tools to fight back against rampant market manipulation."

Bishop contrasted his comprehensive approach to protecting consumers with the House Republican "drill now, drill only" agenda.

"Once again this week, the House passed a bill designed primarily to benefit Big Oil rather than deal with the immediate problem we face," said Bishop. "I support an environmentally-responsible increase in domestic production, but the President has taken real action to bring down today's high prices, and I applaud him."

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