Senate Energy and Natural Resource Committee Holds Hearing on Oil Supply and Prices

FDCH TRANSCRIPTS
Congressional Hearings
Feb. 13, 2003

Senate Energy and Natural Resources Committee Holds Hearing on Oil Supply and Prices

WYDEN:

Thank you, Mr. Chairman.

I just want to continue on this tack with respect to the strategic petroleum reserves. And I strongly favor release of oil now. I think the test, frankly, is not just with Venezuela. Mr. Ebel, you and I have talked about this—the test is 7 percent disruption. I think it's not—I mean, we now—I mean, look at the "Wall Street Journal"—not exactly a left-wing organ. I mean, they are advocating what you're talking about, you know, Mr. Ebel. And I think the question that I would ask and be interested of you and maybe some of the other panelists—it seems to me that the lack of a policy—the lack of a clear policy from this administration, or any administration in this kind of climate, contributes to the uncertainty that is generating this premium on oil and that we badly need a clear policy articulated.

The "Wall Street Journal" advocated one that I would favor. I'm on board. I think that's a good basis for common ground.

But what do you think, Mr. Ebel? Is the absence of a policy contributing to uncertainty that's contributing to this problem?

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WYDEN:

So you don't think we need to have a policy articulated? You're not there with the "Wall Street Journal"?

EBEL:

I think we do have a policy. We haven't put it into effect yet.

WYDEN:

I think there are two pieces to the puzzle. One was discussed with Senator Bingaman—not the actual release. I happen to favor that—reasonable people can differ. What I don't think is a close call is making it clear that we're prepared to do it. I think it is unfortunate—to mention Senator Domenici has worked so hard in a bipartisan way on all of these issues and I think the administration is being AWOL on this hearing, at a time when we are faced with the prospect of war.

I mean, consumers are spending $100 million more per day on energy now than they were a year ago. That's a fact. And what is also a fact are those 50 percent increases in profits that I mentioned of two—our companies. And I think we need a policy—A—and I think we need the administration making it clear where we stand.

And you agree, I gather, Mr. Ebel?

EBEL:

I do—I truly think, you know, that the American people needs to be informed exactly what the policy is and when that policy—is it in play now? Or is it going to go in play when a—when a certain—when the oil loss reaches a certain level? Or do you put it into play today to try to mitigate prices, which is, unfortunately, not the original intent of the Strategic Petroleum Reserve?

WYDEN:

I think my time is about up. I know Mr. Cavaney has a difference of opinion.

I would only say in response to something that you mentioned, Mr. Cavaney, as the "Wall Street Journal" also argues, that this situation is pretty much analogous to the Gulf War situation that we faced at the beginning of the '90s. So there are differences of opinion and I think we need a policy.

Thank you, Mr. Chairman.