III

Calendar No. 444

106TH CONGRESS

2D SESSION S. RES. 263

Expressing the sense of the Senate that the President should communicate

to the members of the Organization of Petroleum Exporting Countries

(‘‘OPEC’’) cartel and non-OPEC countries that participate in the cartel

of crude oil producing countries, before the meeting of the OPEC nations

in March 2000, the position of the United States in favor of increasing

world crude oil supplies so as to achieve stable crude oil prices.

IN THE SENATE OF THE UNITED STATES

FEBRUARY 28, 2000

Mr. ASHCROFT (for himself, Mr. ABRAHAM, Mr. GRASSLEY, Mr. SANTORUM,

Mr. HUTCHINSON, Mr. SMITH of New Hampshire, Mr. GRAMS, and Mr.

L. CHAFEE) submitted the following resolution; which was referred to the

Committee on Foreign Relations

MARCH 9, 2000

Reported by Mr. HELMS, with an amendment

[Strike out all after the resolving clause and insert the part printed in italic]

RESOLUTION

Expressing the sense of the Senate that the President should

communicate to the members of the Organization of Petroleum Exporting Countries (‘‘OPEC’’) cartel and nonOPEC countries that participate in the cartel of crude

oil producing countries, before the meeting of the OPEC

nations in March 2000, the position of the United States
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•SRES 263 RS

in favor of increasing world crude oil supplies so as

to achieve stable crude oil prices.

Whereas the United States currently imports roughly 55 percent of its crude oil;

Whereas ensuring access to and stable prices for imported

crude oil for the United States and major allies and trading partners of the United States is a continuing critical

objective of United States foreign and economic policy for

the foreseeable future;

Whereas the 11 countries that make up the Organization of

Petroleum Exporting Countries (‘‘OPEC’’) produce 40

percent of the world’s crude oil and control 77 percent

of proven reserves, including much of the spare production capacity;

Whereas beginning in March 1998, OPEC instituted 3 tiers

of production cuts, which reduced production by

4,300,000 barrels per day and have resulted in dramatic

increases in crude oil prices;

Whereas in August 1999, crude oil prices had reached $21

per barrel and continued rising, exceeding $25 per barrel

by the end of 1999 and $27 per barrel during the first

week of February 2000;

Whereas crude oil prices in the United States rose $14 per

barrel during 1999, the equivalent of 33 cents per gallon;

Whereas the increase has translated into higher prices for

gasoline and other refined petroleum products; in the

case of gasoline, the increases in crude oil prices have resulted in a penny-for-penny passthrough of increases at

the pump;
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•SRES 263 RS

Whereas increases in the price of crude oil result in increases

in prices paid by United States consumers for refined petroleum products, including home heating oil, gasoline,

and diesel fuel; and

Whereas increases in the costs of refined petroleum products

have a negative effect on many Americans, including the

elderly and individuals of low income (whose home heating oil costs have doubled in the last year), families who

must pay higher prices at the gas station, farmers (already hurt by low commodity prices, trying to factor increased costs into their budgets in preparation for the

growing season), truckers (who face an almost 10-year

high in diesel fuel prices), and manufacturers and retailers (who must factor in increased production and transportation costs into the final price of their goods): Now,

therefore, be it

1 Resolved, That it is the sense of the Senate that—

2 (1) the President should immediately commu3 nicate to the members of the Organization of Petro4 leum Exporting Countries (‘‘OPEC’’) cartel and

5 non-OPEC countries that participate in the cartel of

6 crude oil producing countries that—

7 (A) the United States seeks to maintain

8 strong relations with crude oil producers around

9 the world while promoting international efforts

10 to remove barriers to energy trade and invest11 ment and increased access for United States

12 energy firms around the world;
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1 (B) the United States believes that re2 stricting supply in a market that is in demand

3 of additional crude oil does serious damage to

4 the efforts that OPEC members have made to

5 demonstrate that they represent a reliable

6 source of crude oil supply;

7 (C) the United States believes that stable

8 crude oil prices and supplies are essential for

9 strong economic growth throughout the world;

10 and

11 (D) the United States seeks an immediate

12 lifting of the OPEC crude oil production

13 quotas;

14 (2) the President should review administrative

15 policies that may put an undue burden on domestic

16 crude oil producers, and should consider lifting un17 necessary regulations that interfere with the ability

18 of United States energy industries to supply a great19 er percentage of the energy needs of the United

20 States; and

21 (3) the Senate, when it considers the fiscal year

22 2001 Federal budget, should appropriate sufficient

23 funds for the development of alternative energy re24 sources, including measures to increase the use of

25 biofuels and other renewable resources, to reduce the
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1 dependence of the United States on foreign energy

2 sources.

3 That it is the sense of the Senate that—

4 (1) the President and Congress should take both

5 a short-term and a long-term approach to reducing

6 and stabilizing crude oil prices as well as reducing

7 dependence on foreign sources of energy;

8 (2) to address the problem in the short-term, the

9 President should communicate to the members of the

10 Organization of Petroleum Exporting Countries

11 (‘‘OPEC’’) cartel and non-OPEC countries that par12 ticipate in the cartel of crude oil producing countries,

13 prior to their scheduled meeting on March 27, 2000,

14 that—

15 (A) the United States seeks to maintain

16 strong relations with crude oil producers around

17 the world while promoting international efforts

18 to remove barriers to energy trade and invest19 ment and increased access for United States en20 ergy firms around the world;

21 (B) the United States believes that restrict22 ing supply in a market that is in demand of ad23 ditional crude oil does serious damage to the ef24 forts that OPEC members have made to dem-
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•SRES 263 RS

1 onstrate that they represent a reliable source of

2 crude oil supply;

3 (C) the United States believes that stable

4 crude oil prices and supplies are essential for

5 strong economic growth throughout the world;

6 and

7 (D) the United States seeks an immediate

8 increase in the OPEC crude oil production

9 quotas and not simply an agreement at the

10 March 27, 2000, meeting to lift production

11 quotas at a later date;

12 (3) the President should be commended for send13 ing Secretary of Energy Richardson to personally

14 communicate with leaders of several members of the

15 Organization of Petroleum Exporting Countries on

16 the need to increase the supply of crude oil;

17 (4) to ameliorate the long-term problem of the

18 United States dependence on foreign oil sources, the

19 President should—

20 (A) review all administrative policies, pro21 grams, and regulations that put an undue bur22 den on domestic energy producers; and

23 (B) consider lifting unnecessary regulations

24 that interfere with the ability of United States’

25 domestic oil, gas, coal, hydro-electric, biomass,
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1 and other alternative energy industries to supply

2 a greater percentage of the energy needs of the

3 United States; and

4 (5) to ameliorate the long-term problem of

5 United States dependence on foreign oil sources, the

6 Senate should appropriate sufficient funds for the de7 velopment of domestic energy sources, including meas8 ures to increase the use of biofuels and other renew9 able resources.

Calendar No. 444

106TH CONGRESS

2D SESSION S. RES. 263

RESOLUTION

Expressing the sense of the Senate that the President should communicate to the members of the

Organization of Petroleum Exporting Countries(‘‘OPEC’’) cartel and non-OPEC countries thatparticipate in the cartel of crude oil producingcountries, before the meeting of the OPEC nations in March 2000, the position of the UnitedStates in favor of increasing world crude oil supplies so as to achieve stable crude oil prices.

MARCH 9, 2000

Reported with an amendment