APPLAUDS DECISION TO SUSPEND FILLING STRATEGIC PETROLEUM RESERVE

With gasoline prices having reached $4 a gallon and the cost of oil surpassing $129 a barrel, U.S. Rep. Bill Pascrell, Jr. (D-NJ-08) today voted to approve legislation that would hold the OPEC monopoly accountable for price fixing schemes that buck free market principles and artificially drive up crude oil costs.

“When OPEC nations engage in price-gouging, market manipulation and other anticompetitive practices, American consumers pay the price,” stated Pascrell.  “In the interest of America’s national security and economic strength, Congress is demanding that the Justice Department act more aggressively to crack down on unscrupulous oil cartel members.  The President followed Congress’ lead when he signed our legislation to temporarily suspend filling the Strategic Petroleum Reserve. He should do the same to bring accountability to OPEC.”

If signed into law, the legislation would authorize the U.S. Department of Justice to take legal action against OPEC nations that participate in conspiracies to limit the supply, or fix the price, of oil.  The legislation would create a new Department of Justice Petroleum Industry Task Force to examine the existence and effects of price gouging in the sale of gasoline, anticompetitive price discrimination by petroleum refiners, unilateral efforts to withhold supply in order to inflate prices, and manipulation in futures markets.

On Tuesday, May 20, President Bush signed a bill that Congress sent to the White House to temporarily suspend filling the Strategic Petroleum Reserve (SPR) through the end of the year as long as oil prices remain above $75 a barrel.  The SPR is currently filled 97 percent, a record capacity.  By temporarily suspending contributions to the SPR, an addition 70,000 barrels of oil will be placed back in the market every day immediately reducing the cost of gas by an estimated 5 to 24 cents per gallon.

“I am pleased that the White House joined with Congress to temporarily suspend filling the SPR and provide immediate relief at the pump for American consumers.  Congress will look for the same cooperation from the White House as we move forward with a comprehensive package of tax incentives that will help America shed it reliance on foreign oil by investing in renewable energy resources.  With OPEC accounting for more than two-thirds of global oil production, America can not continue to stand by and watch it dictate the price of our gasoline.  Congress is taking decisive steps towards a more energy independent future in America,” concluded Pascrell.

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