Issue Position: Rising Gas & Energy Prices

Issue Position

Issue Position: Rising Gas & Energy Prices

Record Gas Prices

In recent months, the price of oil has continued to skyrocket - reaching a record $146 per barrel on July 11th. American families feel the pinch of rising oil prices everywhere from the gas pump to the kitchen table and need relief. The New Direction Congress has been working on behalf of America's families and businesses to lower energy costs for the American consumer, increase energy independence, enhance our national security, and reduce global warming.

The New Direction Congress has repeatedly brought forth proposals to increase domestic supply, reduce the price at the pump, protect American consumers and businesses and promote renewable energy and conservation. To date, Democrats have brought forward 13 major initiatives to accomplish the above goals, yet each time a majority of House Republicans have voted against these proposals.

A key proposal would codify Democrats' call for releasing a small portion of oil from the Strategic Petroleum Reserve (SPR). Releasing a small amount from the government stockpile is a positive short-term step that would provide immediate impact on the price at the pump and ease the pain American families and businesses are feeling every day.

The SPR has been tapped or suspended before by President Bush, President Clinton, and the first President Bush, and each time the impact on prices has been dramatic and immediate. In 1991, oil prices immediately dropped by 33 percent. The 2000 exchange drove oil prices down by 19 percent. And the release by President Bush in 2005 resulted in a 9 percent drop.

House Democrats are working to promote the responsible domestic production of oil and natural gas, particularly in 20 million acres of the National Petroleum Reserve-Alaska. There are 68 million acres of federal land already leased by oil companies for energy production now but sitting idle. That's 75% of leased lands, sitting idle. Oil companies should drill what they have leased--and lease lands already open for drilling first. But instead, President Bush and Congressional Republicans want to make this a fight about our beaches and our threatened wilderness areas, in an apparent attempt to help the oil companies lock up more public lands before he leaves office.

On July 8, Speaker Pelosi called on President Bush to use his authority to draw down a limited portion of the oil in the Strategic Petroleum Reserve. This would expand available supplies in the market and help reduce the record prices adversely affecting American consumers and businesses. Since the Bush Administration took office, the price of oil has increased from less than $30 per barrel to a recent record high of nearly $150, and the price of gasoline has risen from $1.47 per gallon to a record high of $4.11 per gallon. The destabilizing impact of these price increases, driven both by market forces and by excessive speculation, has been devastating to tens of millions of Americans and businesses - and to our larger economy as a whole. In these circumstances, utilization of the Strategic Petroleum Reserve is more than justified.

Strategic Petroleum Reserve
Congressional Action on Gas Prices & Energy Independence

Veto Threat Consumer Energy Supply Act (H.R. 6578),
Failed to receive 2/3 support on July 24, 2008; 268-157 (Dem: 231-0, Rep. 37-198)
Veto Threat Drill Responsibly in Leased Lands (DRILL) Act (H.R. 6515),
Failed to receive 2/3 support on July 17, 2008; 244-173 (Dem: 218-11, Rep. 26-162)
Passed Saving Energy Through Public Transporation Act (H.R. 6052),
Passed: June 26, 2008; 322-98 (Dem: 231-0, Rep: 91-98)
Passed Energy Markets Emergency Act (H.R. 6377),
Passed: June 26, 2008; (Dem: 232-0, Rep: 170-19)
Now Law Farm Bill with Historic Investment in Affordable Biofuels and Beefed Up Oversight on Market Manipulation (HR 2419)
President's Veto Overriden: May 21, 2008; 316‐108 (Dem: 216‐14, Rep: 100‐94)
Veto Threat Renewable Energy and Jobs Act (HR 6049)
Passed: May 21, 2008; 263‐160 (Dem: 228‐1, Rep: 35‐159)
Veto Threat Gas Price Relief for Consumers Act, Holding OPEC and Oil Companies Accountable for Price Fixing (HR 6074)
Passed: May 20, 2008; 324‐84 (Dem: 221‐2 Rep: 103‐82)
Now Law Strategic Petroleum Reserve Fill Suspension and Consumer Protection Act (HR 6022)
Passed: May 13, 2008; 385‐25 (Dem: 223‐0, Rep: 162‐25)
Veto Threat Repeal Profit‐Rich Big Oil Companies, Invest in Renewable Energy and Energy Efficiency (HR 5351)
Passed: February 27, 2008; 236-182 (Dem 219-8, Rep: 17 174)
Now Law Energy Independence Law with Market Manipulation Ban & New Vehicle Mileage Standards (HR 6)
Passed: December 18, 2007; 314‐100 (Dem: 219‐4, Rep: 95‐96)
Now Law America COMPETES Act with Energy Research & Development of Clean Energy Technologies (HR 2272)
Passed: August 2, 2007; 367‐57 (Dem: 224‐1, Rep: 143‐56)
Veto Threat Crack Down on Gas Price Gouging (HR 1252)
Passed: May 23, 2007; 284‐141 ( Dem: 228‐1, Rep: 56‐140)
Veto Threat Hold OPEC Accountable for Oil Price Fixing (HR 2264)
Passed: May 22, 2007; 345‐72 (Dem: 220‐5, Rep: 125‐67)

Consumer Energy Supply Act (H.R. 6578)

To combat record gas prices at $4.03 a gallon, on July 24 the House voted on the Consumer Energy Supply Act, H.R. 6578, to temporarily release nearly 10 percent of the oil from the government's stockpile (known as the Strategic Petroleum Reserve (SPR)), and replace it later with heavier, cheaper crude oil. This could bring gas prices down, strengthen our national security, and be a good deal for the American taxpayer. The measure received strong majority support with a vote of 268 to 157, but failed to receive the two-thirds necessary to pass under suspension of the rules.

Drill Responsibly in Leased Lands (DRILL) Act (H.R. 6515)

On July 17, the House voted on the Drill Responsibly in Leased Lands (DRILL) Act, H.R. 6515, a bill to promote the responsible domestic production of oil and natural gas, particularly in 20 million acres of the National Petroleum Reserve-Alaska. While 244 Members voted for the bill, it failed to get the two-thirds support necessary for passage.

There are 68 million acres of federal land already leased by oil companies for energy production now but sitting idle. That's 75% of leased lands, sitting idle. Oil companies should drill what they have leased--and lease lands already open for drilling first. But instead, President Bush and Congressional Republicans want to make this a fight about our beaches and our threatened wilderness areas, in an apparent attempt to help the oil companies lock up more public lands before he leaves office.

Reducing Transit Fares (H.R. 6052)

On June 26, the House passed the Saving Energy Through Public Transporation Act, which gives grants to mass transit authorities to lower fares for commuters pinched at the pump and expand transit services.

Energy Markets Emergency Act (H.R. 6377)

On June 26, the House passed the Energy Markets Emergency Act, which would take crucial steps to curb excessive speculation in the energy futures markets by directing the CFTC to:

* Use all its authority, including its emergency powers, immediately to curb the role of excessive speculation in any contract market trading energy futures or swaps, and
* Use its most potent emergency tools -- including the immediate powers to set new position limits (size of the stake that each speculative investor can hold in a given market), increase margin requirements (the money needed to trade), and impose other corrective actions as necessary -- to eliminate excessive speculation, price distortion, sudden or unreasonable fluctuations, or unwarranted changes in the price of energy commodities or other unlawful activity causing major market disturbances that prevent the market from accurately reflecting the forces of supply and demand for energy commodities.

Farm Bill with Historic Investment in Affordable Biofuels and Beefed Up Oversight on Market Manipulation (HR 2419)

On May 21, the House overrode the President's veto of the farm bill. The farm bill will better reflect our values, strengthening American agriculture to meet the 21st Century needs of the United States and the world with a safe, stable food supply. The bill makes an historic investment in affordable biofuels and increases oversight on market manipulation.

Renewable Energy and Jobs Act (HR 6049)

On May 21, the House passed legislation (H.R. 6049) to extend and expand tax incentives for renewable energy, retain and create hundreds of thousands of green jobs, spur American innovation and business investment, cut taxes for millions of Americans, and close loopholes allowing U.S. corporations and executives to avoid U.S. taxes by shipping jobs and investment overseas. The President has threatened to veto this bill.

Gas Price Relief for Consumers Act, Holding OPEC and Oil Companies Accountable for Price Fixing (HR 6074)

On May 20, the House passed the Gas Price Relief for Consumers Act, H.R. 6074. The bill authorizes the Justice Department to take legal action against OPEC state-controlled entities that participate in conspiracies to limit the supply, or fix the price, of oil. This bill will combat record gas prices, which on May 19 climbed to $3.79 a gallon.

This bill makes clear that OPEC and other nations are not covered by the Foreign Sovereign Immunities Act when acting in a commercial capacity and are engaged in price-fixing and other anticompetitive activities. It authorizes lawsuits in U.S. federal court against oil cartel members by the Justice Department.

Strategic Petroleum Reserve Fill Suspension and Consumer Protection Act (HR 6022)

In April, Speaker Pelosi called on President Bush to suspend purchases of oil for the Strategic Petroleum Reserve (SPR) temporarily. Filling the SPR takes 70,000 barrels of oil off the market each day, even though the reserve is 97 percent full with enough to meet our national security needs. Suspending these government purchases, as we have done in the past, could reduce gas prices by 5 to 24 cents a gallon - a critical first step for America's families, businesses, and the economy. On May 13, the House passed the Strategic Petroleum Reserve Fill Suspension and Consumer Protection Act, H.R. 6022, and on May 14 it passed the Senate by unanimous consent. The measure suspends the fill of the Strategic Petroleum Reserve through the end of the year, as long as the price of crude oil remains above $75 per barrel.

In response to this Congressional action, on May 16, the President announceed that he would halt new shipments to the Strategic Petroleum Reserve.

On May 20, the President signed the legislation, which he previously opposed, to temporarily suspend filling the Strategic Petroleum Reserve.

Repeal Profit‐Rich Big Oil Companies, Invest in Renewable Energy and Energy Efficiency (HR 5351)

On February 27, the House of Representatives passed the Renewable Energy and Energy Conservation Tax Act of 2008, H.R. 5351, which will end unnecessary subsidies to Big Oil companies and invest in clean, renewable energy and energy efficiency. It will extend and expand tax incentives for renewable electricity, energy and fuel, as well as for plug-in hybrid cars, and energy efficient homes, buildings, and appliances. These provisions are critical to creating hundreds of thousands of jobs. And the preservation of existing jobs relies on them too: a recent study showed that allowing the renewable energy incentives to expire would lead to about 116,000 jobs being lost in the wind and solar industries through the end of 2009.

The bill is fiscally responsible - paying for these energy incentives by repealing unnecessary tax subsidies for large integrated oil companies. The big five oil companies recently reported record profits for 2007, with ExxonMobil earning $40.6 billion - the largest corporate profit in American history. While oil company profits have quadrupled, high energy prices continue to squeeze American families - gas prices have skyrocketed and home heating oil has jumped along with other household costs.

Energy Independence Law with Market Manipulation Ban & New Vehicle Mileage Standards (HR 6)
In December, 2007, the New Direction Congress passed the historic and bipartisan Energy Independence and Security Act to make America more energy independent, respond to the global warming crisis, grow our economy, and lower energy costs. The new law will reduce our dependence on foreign oil and our energy costs:

* Net imports of crude oil are projected to be 2.4 million barrels per day lower in 2030 than previously expected. This is more than what we currently import from all Persian Gulf countries combined. [EIA, 3/4/08]
* America's long-time growing dependence on foreign oil will be reversed, with our imports of foreign oil dropping from 60 percent to 51 percent of our total consumption in 2022. [EIA, 3/4/08]
* American families will save $700 to $1,000 a year at the pump as the measure increases the fuel economy standard to 35 miles per gallon in 2020 for new cars and trucks.
* Building, appliance, and lighting efficiency standards in the law will save consumers $400 billion through 2030.
* Oil prices are projected decline from levels of more than $100 per barrel to $57 per barrel in 2016 (in 2006 dollars) in part due the new energy law's reduction in U.S. demand for petroleum. [EIA, 3/4/08]
* Inflation-adjusted prices for oil, natural gas and coal are expected to be lower in 2030 than they are today. [EIA, 3/4/08]

The new law prohibits oil companies from engaging in market manipulation or providing false information about price in the wholesale petroleum markets - imposing new civil penalties for those who break these rules.

America COMPETES Act with Energy Research & Development of Clean Energy Technologies (HR 2272)

On August 2, 2007, the House passed the final America COMPETES Act, and it was signed into law on August 9. America must implement a bold energy strategy to create new high-paying jobs, strengthen our national security, reduce costs for American consumers, and reduce global warming. A skilled "green' workforce and new clean energy technologies will be the economic engines of the 21st century.

This legislation strengthens our national commitment to energy research and innovation, by creating a new Advanced Research Projects Agency for Energy (ARPA-E), like we already have for the Department of Defense. The agency will help provide talent and resources for high-risk, high-reward energy research and technology development, and help attract investment for the next generation of revolutionary technologies.

Crack Down on Gas Price Gouging (HR 1252)

On May 23, 2007, the House passed the Energy Price Gouging Prevention Act, H.R. 1252, which will provide immediate relief to consumers by giving the Federal Trade Commission (FTC) the authority to investigate and punish those who artificially inflate the price of energy. It will ensure the federal government has the tools it needs to adequately respond to energy emergencies and prohibit price gouging - with a priority on refineries and big oil companies.

Hold OPEC Accountable for Oil Price Fixing (HR 2264)

On May 22, 2007, the House passed the No Oil Producing and Exporting Cartels (NOPEC) Act of 2007, H.R. 2264, which will enable the Department of Justice to take legal action against foreign nations for participating in oil cartels that drive up oil prices globally and in the United States. This legislation does so by exempting OPEC and other nations from the provisions of the Foreign Sovereign Immunities Act when acting in a commercial capacity; by making clear that the so-called "Act of State" doctrine does not prevent courts from ruling on antitrust charges brought against foreign governments; and by authorizing the Department of Justice to bring lawsuits in U.S. courts against cartel members.

Use It Or Lose It (H.R. 6251)

On June 12, Natural Resources Committee Chairman Nick Rahall introduced legislation to help lower gas prices by compelling oil companies to utilize the 68 million acres that are being leased by big oil companies, but not used to produce energy. The Responsible Federal Oil and Gas Lease Act, H.R. 6251, would force oil and gas companies to either produce or give up federal onshore and offshore leases they are stockpiling by barring the companies from obtaining any more leases unless they can demonstrate that they are producing oil and gas.

The 68 million acres of leased but inactive land have the potential to produce an additional 4.8 million barrels of oil. This would nearly double total U.S. oil production, and increase natural gas production by 75 percent. It would also cut U.S. oil imports by more than one-third, reducing America's dependency on foreign oil.

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