III

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, Mr. L.

CHAFEE, Mr. CRAPO, and Mr. FEINGOLD) 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]

MARCH 27, 2000

Considered, amended, and agreed to

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 ATS

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 ATS

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 and Congress should take

3 both a short-term and a long-term approach to re4 ducing and stabilizing crude oil prices as well as re5 ducing dependence on foreign sources of energy;

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

7 the President should communicate to the members

8 of the Organization of Petroleum Exporting Coun9 tries (‘‘OPEC’’) cartel and non-OPEC countries that

10 participate in the cartel of crude oil producing coun11 tries, prior to their scheduled meeting on March 27,

12 2000, that—
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1 (A) the United States seeks to maintain

2 strong relations with crude oil producers around

3 the world while promoting international efforts

4 to remove barriers to energy trade and invest5 ment and increased access for United States

6 energy firms around the world;

7 (B) the United States believes that re8 stricting supply in a market that is in demand

9 of additional crude oil does serious damage to

10 the efforts that OPEC members have made to

11 demonstrate that they represent a reliable

12 source of crude oil supply;

13 (C) the United States believes that stable

14 crude oil prices and supplies are essential for

15 strong economic growth throughout the world;

16 and

17 (D) the United States seeks an immediate

18 increase in the OPEC crude oil production

19 quotas and not simply an agreement at the

20 March 27, 2000, meeting to lift production

21 quotas at a later date;

22 (3) the President should be commended for

23 sending Secretary of Energy Richardson to person24 ally communicate with leaders of several members of
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1 the Organization of Petroleum Exporting Countries

2 on the need to increase the supply of crude oil;

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

4 United States dependence on foreign oil sources, the

5 President should—

6 (A) review all administrative policies, pro7 grams, and regulations that put an undue bur8 den on domestic energy producers; and

9 (B) consider lifting unnecessary regula10 tions that interfere with the ability of United

11 States’ domestic oil, gas, coal, hydro-electric,

12 biomass, and other alternative energy industries

13 to supply a greater percentage of the energy

14 needs of the United States; and

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

16 United States dependence on foreign oil sources, the

17 Senate should appropriate sufficient funds for the

18 development of domestic energy sources, including

19 measures to increase the use of biofuels and other

20 renewable resources.

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