IV

106TH CONGRESS

2D SESSION H. CON. RES. 273

Expressing the sense of Congress concerning drawdowns of the Strategic

Petroleum Reserve.

IN THE HOUSE OF REPRESENTATIVES

MARCH 9, 2000

Mr. GEJDENSON (for himself, Mr. GILMAN, Mr. SANDERS, Mr. LARSON, Mr.

HINOJOSA, Mr. CLEMENT, Mr. GILCHREST, Mr. MINGE, Ms. DANNER,

Mr. BARCIA, Mr. BURR of North Carolina, and Mr. WALSH) submitted

the following concurrent resolution; which was referred to the Committee

on Commerce

CONCURRENT RESOLUTION

Expressing the sense of Congress concerning drawdowns of

the Strategic Petroleum Reserve.

Whereas the price of crude oil has more than doubled in the

past year to over $30 per barrel, and prices of petroleum

products such as heating oil, diesel fuel, and gasoline

have reached record levels;

Whereas a sharp sustained increase in the price of crude oil

negatively affects the overall economic well-being of the

United States;

Whereas high oil prices harm people and businesses;

Whereas the Energy Information Administration has determined that Northeastern United States fuel reserves are
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•HCON 273 IH

the lowest in 20 years and that Americans are ‘‘skating

on thin ice’’ in meeting energy requirements;

Whereas the current price and supply crisis was largely created through the actions of the Organization of Petroleum Exporting Countries (‘‘OPEC’’) by market-distorting and collusive production reductions, and OPEC’s

activities would be in violation of United States antitrust

laws if conducted within the United States;

Whereas OPEC has demonstrated unity not seen since the

energy crises of the 1970’s;

Whereas the United States has a Strategic Petroleum Reserve of over 570,000,000 barrels of crude oil to protect

against threats to oil supplies;

Whereas many experts, trade associations, and members of

Congress have called for a drawdown of the Strategic Petroleum Reserve to combat OPEC’s market distorting behavior;

Whereas a drawdown or the threat of a drawdown of the

Strategic Petroleum Reserve could provide a critical tool

to break the resolve of OPEC to practice market distorting behavior, and a sale of oil from the Strategic Petroleum Reserve would increase domestic supplies and

drive down prices in the short term;

Whereas swaps from the Strategic Petroleum Reserve offer a

way to increase the overall size of the Strategic Petroleum Reserve at no cost to the taxpayer; and

Whereas low global inventories allow OPEC to retain inordinate control over supply and pricing, and consequently

undue influence over the global economy: Now, therefore,

be it
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1 Resolved by the House of Representatives (the Senate

2 concurring),

3 SECTION 1. SENSE OF CONGRESS.

4 It is the sense of Congress that—

5 (1) using authority under existing law, directly

6 through time exchanges (or ‘‘swaps’’) or through

7 other means, the President and the Secretary of En8 ergy should draw down the Strategic Petroleum Re9 serve in an economically feasible manner and to a

10 responsible degree, to combat unfair foreign trade

11 practices of the Organization of Petroleum Export12 ing Countries and alleviate the severely deleterious

13 consequences to people and businesses in the United

14 States that those practices have caused; and

15 (2) the President and the Secretary of Energy

16 should prepare for future threats to the economy

17 and energy supply of the United States by devel18 oping methods to—

19 (A) draw down the Strategic Petroleum

20 Reserve quickly when needed; and

21 (B) increase the quantity of crude oil in

22 the Strategic Petroleum Reserve over time in an

23 economically reasonable manner.

Æ