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, and Mr. GRAMS) submitted the following resolution; which was referred to the Committee on

Foreign Relations

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

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;
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•SRES 263 IS

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;

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
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•SRES 263 IS

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;

13 (B) the United States believes that re14 stricting supply in a market that is in demand

15 of additional crude oil does serious damage to

16 the efforts that OPEC members have made to

17 demonstrate that they represent a reliable

18 source of crude oil supply;
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1 (C) the United States believes that stable

2 crude oil prices and supplies are essential for

3 strong economic growth throughout the world;

4 and

5 (D) the United States seeks an immediate

6 lifting of the OPEC crude oil production

7 quotas;

8 (2) the President should review administrative

9 policies that may put an undue burden on domestic

10 crude oil producers, and should consider lifting un11 necessary regulations that interfere with the ability

12 of United States energy industries to supply a great13 er percentage of the energy needs of the United

14 States; and

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

16 2001 Federal budget, should appropriate sufficient

17 funds for the development of alternative energy re18 sources, including measures to increase the use of

19 biofuels and other renewable resources, to reduce the

20 dependence of the United States on foreign energy

21 sources.

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