Today, as Iowans are paying record high gas prices,
Congressman Dave Loebsack joined an overwhelming bipartisan majority in the House
of Representatives in support of legislation that would temporarily suspend the
filling of the Strategic Petroleum Reserve (SPR) until the end of the year and
bring down the cost of gasoline. The Strategic Petroleum Reserve Fill
Suspension and Consumer Protection Act was approved by a vote of 385-25. The U.S. Senate
passed a similar provision by a vote of 97-1.
“Hardworking Iowa
families are unfairly struggling to keep their gas tanks full this year because
of record high gas prices,” said Congressman Loebsack. “I was proud to support legislation that can quickly
bring down gas prices. The relief
provided as a result of this bill is an important first step, and I will
continue my efforts to provide further relief at the pump, reduce our
dependence on foreign oil, and launch a cleaner, smarter energy future for America that
lowers costs and creates hundreds of thousands of green jobs.”
Currently, the Strategic Petroleum Reserve is filled roughly
to 97 percent of its capacity – the highest level ever – with enough oil to
meet our national security needs. The
Strategic Petroleum Reserve Fill Suspension and Consumer Protection Act would
temporarily suspends the Energy Department’s (DOE) ability to directly purchase
oil for the SPR or to enter into new contracts to obtain it through the
Department of Interior’s royalty-in-kind program through the end of the
year.
The SPR has been tapped or suspended before by President
Bush, President Clinton, and the first President Bush. In 2000, after
such action, the price of oil dropped down by one-third – from $30 to $20 per
barrel. Filling of the SPR takes 70,000
barrels of oil off the market each day, and it is expected that a temporary
suspension could reduce gas prices from 5 to 24 cents a gallon. This relief would be a critical first step in
helping Iowa’s
families, businesses, and economy.
The cost of crude oil reached a new record of $126 per
barrel this month, just after the biggest five oil companies announced 1st
quarter profits totaling nearly $37 billion.
Exxon Mobil’s profits climbed to $11 billion, up 17 percent from last
year and just shy of its record profits last quarter. BP announced their profits increased 63 percent;
Royal Dutch Shell reported a 25 percent increase in profits. This continues the five-year trend of record
oil profits under the Bush Administration.
Congressman Loebsack joined over 90 of his colleagues in
sending President Bush a letter asking him to exercise his powers in
temporarily suspending purchases of oil for the SPR. Unfortunately, the President has refused to
take action, making this Congressional action necessary.
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