Senate Halts putting Oil in the Strategic Petroleum Reserve

[Guest Justin Kitsch]

Senator Byron Dorgan’s effort to halt filling the Strategic Petroleum Reserve (SPR) cleared a hurdle today, when the Senate passed Dorgan’s proposal with support from members of both parties.

 

“This is a step in the right direction to put downward pressure on gas prices,” said Dorgan. “With gas prices around four dollars a gallon and oil over $120 per barrel, it makes no sense to be putting 70,000 barrels of oil underground everyday, especially when the SPR is 97 percent full. When the American consumer is being burned at the stake of higher gas prices, the government should not be carrying the wood."

 

For months, Dorgan has been leading the charge to put more oil supply into the market by suspending deposits into SPR. In February of this year, Dorgan introduced this energy legislation and has worked to build bipartisan backing for the proposal. Today’s vote garnered the support of 97 Senators.

 

“Americans are suffering from pain at the gas pump, and it is time we take action to put downward pressure on gas prices,” said Dorgan. “In rural states like North Dakota, where drivers spend much more on fuel than in urban areas, the rising cost of gas is hurting family budgets. The 70,000 barrels a day that the administration is depositing underground should be going into the fuel supply to bring down gas prices."

 

Experts have testified before the Senate Energy Committee that taking a disproportionate amount of light, sweet crude oil from the Gulf of Mexico and putting it underground is increasing the price of gas. Some experts have estimated the extra cost to consumers at 10 percent.

 

The House of Representatives is scheduled to pass similar SPR legislation this week. Once both the Senate and House pass the same version, it will then be sent to the President for consideration.

[Guest U.S. Senator Pete Domenici]

I am pleased that the Senate did adopt an amendment to suspend filling the Strategic Petroleum Reserve (SPR). Although this amendment won’t have a dramatic effect on gas prices, it does reflect the fact that when oil now costs over $120 dollars a barrel, we need to begin doing things differently. I wish more of my colleagues had recognized that fact with regard to increasing domestic production.