CQ TODAY ONLINE NEWS
– ENERGY
Updated May 13, 2008 – 7:20 p.m.
House, Senate Vote to Require Suspending Oil Deposits to Strategic Reserve
By Coral Davenport, CQ Staff
The House and Senate defied the White House on Tuesday with bipartisan votes that would require a temporary halt to oil deposits into the Strategic Petroleum Reserve.
The House bill (
Oil futures for June deliveries closed Tuesday at $125.80 a barrel in New York.
Earlier, senators voted, 97-1, to adopt an amendment to unrelated legislation (
Republicans then objected to a request by Majority Leader Harry Reid , D-Nev., to call up a freestanding bill that contained a similar temporary halt. However, a spokeswoman for Minority Leader Mitch McConnell , R-Ky., said McConnell would be comfortable with clearing the House measure for President Bush.
The White House opposes any suspension of shipments to the reserve. Bush says that such a step would have little or no impact on gasoline prices.
Democrats have long opposed pumping more oil into the reserve when gasoline prices are high, arguing that keeping the fuel on the market could ease some pain at the pump. Republicans once backed Bush on the issue, but many have shifted position as a result of record-high oil and gasoline prices, now topping $4 a gallon in some areas.
Lawmakers from both parties conceded that the move, which would free about 70,000 barrels a day, is only a modest, temporary measure that would reduce gasoline costs by a few pennies per gallon, and would not get at the root cause of high gasoline prices.
“While there is no guarantee that putting this oil onto the market rather than into the SPR will lower prices, even the modest step of suspending such acquisitions for the time being could potentially prick the speculative bubble now characterizing oil markets,” said House Energy and Commerce Chairman John D. Dingell , a Michigan Democrat.
One key Republican who changed her view is Sen. Kay Bailey Hutchison of Texas, who chairs the Republican Policy Committee.
“The SPR had 554 million barrels when President Bush took office and today it has over 701 million barrels,” Hutchison said during floor debate. “We are in an extreme circumstance, now that oil is around $120 a barrel. I support an immediate halt in the deposits of domestic crude into the SPR as we enter the busiest driving season of the year.”
The SPR provision was the only common element between a Republican energy package and a Democratic package of energy provisions (
Boosting U.S. Production
House, Senate Vote to Require Suspending Oil Deposits to Strategic Reserve
Republicans used their shift on the reserve to call on Democrats to consider policy changes of their own — specifically, to support efforts to expand domestic oil and gas production by drilling in the Arctic National Wildlife Refuge and allowing states to authorize oil drilling in offshore coastal waters currently subject to a federal moratorium. They offered an amendment to the flood bill that incorporated their proposals, which failed, 42-56, and was withdrawn.
“Last year, this Congress acted in a bipartisan way to reduce our demand for oil by increasing fuel economy standards for cars and trucks, and by increasing our use of renewable fuels,” McConnell said. “But no matter how hard we might try, we cannot repeal the law of supply and demand. We know that we also need to increase supply in order to lower gas prices, and that’s what our amendment does.”
McConnell said if President Bill Clinton hadn’t vetoed a GOP budget bill in 1995 that would have opened the Arctic National Wildlife Refuge to drilling, “more than a million barrels of oil per day would be flowing to American consumers.”
In the House, Minority Whip Roy Blunt , R-Mo., said, “Any additional supply we can add to the pipeline in the short-term is supply we ought to be looking at — and I’ve been heartened that Democrats endorsing the SPR plan at least appear to be conceding a link between greater supply and diminished price.”
“Of course,” Blunt added, “that concession seems to dissolve immediately once the idea of adding a real supply component to an energy bill comes up.”
Added Rep. Don Young , R-Alaska, ranking Republican on the House Natural Resources Committee: “The 1 million barrels we should be getting from ANWR each day is 14 times more than the 70,000 barrels we’ll be getting daily by temporarily halting the SPR deliveries.”
First posted May 13, 2008 12:08 p.m.


POST A COMMENT
Oops! The following errors must be addressed: