House Republicans Reject Temporary Increase of Nation's Oil Supply that would Provide Relief to Families at the Pumps

Press Release

Today the House of Representatives and Congressman Joe Courtney voted on H.R. 6578, The Consumer Energy Supply Act of 2008, which would mandate an exchange of 70 million barrels of light crude oil from the Strategic Petroleum Reserve (SPR) and replace it over time with heavier crude oil.

Unfortunately, most House Republicans lined up to vote against the measure, which would have brought families relief at the pumps and in their homes this winter. The entire Connecticut House delegation, including Republican Representative Chris Shays voted in favor of the SPR bill.

In May, Congressman Courtney introduced H.R. 6035, legislation to exchange 50 million barrels of oil, which was used as a partial model for this latest effort to use the SPR to address our national energy supply crisis as we head into the winter months.

"We need more oil on the markets fast to bring down gas prices and before the cold New England winter sets in," stated Courtney. "I will not allow Connecticut's homes and families to go cold this winter and this bill will help to temporarily increase our nation's energy supply over the course of the next few critical months."

The bill instructs the Secretary of Energy to release 70 million barrels of the light crude oil currently in the reserve over the next six months and acquire heavier replacement oil.

Historically, exchanges such as the one proposed have had a major impact on prices. President George H.W. Bush deployed oil from the SPR in 1991 and oil prices dropped by 38 percent. In 2000, President Clinton employed a similar strategy, which again dramatically lowered prices by nearly 20 percent. Following Hurricane Katrina, President George Bush released oil from the SPR resulting in a nearly 10 percent drop in prices. According to some estimates, if the 70 million barrel exchange is implemented, per barrel prices may fall by approximately $25 per barrel.

Congressman Courtney and the New England Democratic Delegation have also sent a letter to Speaker of the House Nancy Pelosi calling for a second economic stimulus package that includes triple the amount of funds for the Low-income Home Energy Assistance Program (LIHEAP) to total $9 billion and for a total of $1 billion for the Weatherization Assistance Program. The group is also seeking to expand the number of families that qualify for LIHEAP to include more working and middle-class families struggling that may struggle with home heating costs this winter.

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