Senate Resolution 364 - Expressing the Sense of the Senate Concerning Oil Markets

SUBMITTED RESOLUTIONS: SENATE RESOLUTION 364-EXPRESSING THE SENSE OF THE SENATE CONCERNING OIL MARKETS

Mr. SCHUMER (for himself, Mr. KENNEDY, Ms. STABENOW, Ms. MIKULSKI, Mr. WYDEN, Mr. DURBIN, Mr. CORZINE, Mrs. BOXER, Mr. LEVIN, Mr. LAUTENBERG, Mr. LEAHY, Mr. HARKIN, Mr. DODD, Mrs. FEINSTEIN, Mrs. CLINTON, Mr. SARBANES, Mr. REED, Mr. DASCHLE, Mrs. MURRAY, Mr. LIEBERMAN, Mr. ROCKEFELLER, Mr. AKAKA, Mr. FEINGOLD, Mr. REID, Mr. JOHNSON, and Mr. DAYTON) submitted the following resolution; which was referred to the Committee on Energy and Natural Resources:

S. RES. 364

Whereas the prices of gasoline and crude oil have a direct and substantial impact on the financial well-being of American families, the potential for national economic recovery, and the economic security of the United States;

Whereas on Friday, May 7, 2004, crude oil prices reached a 13-year high of $40 per barrel, the weighted national average retail price of gasoline was $1.96 per gallon, and the average retail price of gasoline has broken all-time record highs for 2 consecutive months;

Whereas despite the fact that crude oil prices were already approaching record highs, the Organization of Petroleum Exporting Countries (OPEC) announced on April 1, 2004, its commitment to reduce oil production by 1,000,000 barrels per day;

Whereas the Strategic Petroleum Reserve (SPR) was created to enhance the physical and economic security of the United States, and the law allows the SPR to be used to provide relief when oil and gasoline supply shortages cause economic hardship;

Whereas the proper management of the resources of the SPR could provide gasoline price relief to American families and provide the United States with a tool to counterbalance OPEC supply management policies;

Whereas it has been reported that the Administration's current policy of filling the SPR at a rate of hundreds of thousands of barrels per day, despite the fact that the SPR is more than 94 percent full, has contributed to record high gasoline contract prices on the New York Mercantile Exchange;

Whereas in order to combat high gasoline prices during the summer and fall of 2000, President Clinton released 30,000,000 barrels of oil from the SPR, stabilizing the retail price of gasoline;

Whereas the Administration has failed to manage the SPR in a manner that would provide gasoline price relief to working families; and

Whereas the Administration has failed to adequately demand that OPEC immediately increase oil production in order to lower crude oil prices and safeguard the world economy: Now, therefore, be it

Resolved,

SECTION 1. SENSE OF THE SENATE CONCERNING OIL MARKETS.

It is the sense of the Senate that-

(1) the President should directly confront OPEC and challenge OPEC to immediately increase oil production;

(2) the President should direct the Federal Trade Commission and Attorney General to exercise vigorous oversight over the oil markets to protect the American people from price gouging and unfair practices at the gasoline pump; and

(3) to lower the burden of gasoline prices on the American economy and to circumvent OPEC's efforts to reap windfall crude oil profits, the President should suspend deliveries of oil to the SPR and release 1,000,000 barrels of oil per day from the SPR for 30 days following the date of adoption of this resolution, and if necessary, for an additional 30 days beyond that.

Mr. KENNEDY. Mr. President, gasoline prices in Massachusetts just passed the two-dollar mark, and are expected to go even higher in the months ahead. A year ago, the average price of regular gas in Massachusetts was $1.53 per gallon. That means that the average two-car middle class family is paying $56 more per month for gasoline than they were last year. That's the same as a $660 middle class pay cut for the year.

In addition, the high price of gasoline is causing the prices of other consumer goods to go up as well, including groceries and
other necessities.

But while middle class families are hurting, the Bush Administration stands on the sidelines. They are doing nothing to encourage OPEC nations to increase production to bring down oil prices.

They are doing nothing to prevent price gouging by the Administration's friends in the oil industry. The profits of the top five oil companies jumped 300 percent in just the past year. That's money taken right out of the pockets of middle class America, and the administration is doing nothing about it.

The President has failed the American consumer with his weak gasoline policies and by pandering to the big oil companies.

Today, I stand with my colleagues and demand that President Bush take immediate action to bring down prices at the pump that impose such a heavy burden on consumers. The President should confront OPEC and demand an increase in oil production. And the President should stop filling the Strategic Petroleum Reserve and release a million barrels of oil a day until prices stabilize.

President Clinton released 30 million barrels in 2000 and this was effective in lowering the price of gasoline.

The Reserve was created for times of crisis, and I believe strongly that it should be used sparingly and for true emergencies. Because the Reserve is almost full today, I believe we can draw down on it without jeopardizing our strategic interests. And the law allows it to be used when supply shortages cause economic hardships for the American people.

Finally, the President should direct the Attorney General to intervene with the big oil companies to prevent price gouging.

This is a crisis that is harming middle class families right now. We need action and we need it now. Every day that the White House continues to turn a blind eye to Big Oil, the worse it gets for the pocketbooks of average families. This legislation would call on the White House to reverse course and take immediate steps to provide some relief to American consumers.