Oil Shockwave Already Hitting American Families. Oil Spike Prime Example of Effects of U.S. Oil Dependence

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Contact: Select Committee, 202-225-4081

Markey: Oil Shockwave Already Hitting American Families

Heating Oil Spike Prime Example of Effects of U.S. Oil Dependence, Says Chairman

WASHINGTON (November 1, 2007) – As leaders in foreign and energy policy meet today to conduct an oil “war game” examining what a worldwide oil crisis might look like, Chairman Edward J. Markey (D-Mass.) said that American families are already witnessing the early shockwaves of our oil dependence in the form of higher heating oil prices. Oil prices rose again today, spiking above $96 per barrel on the world market, and heating oil prices that affect millions of homes, especially in the Northeast United States, have risen as well.

“An oil shockwave is already upon us,” said Markey, who heads the Select Committee on Energy Independence and Global Warming. “Consumers get shocked when they open their energy bill, and we’re getting wave after wave of new record prices for oil. We must pass energy legislation currently before Congress to cut America’s oil dependence and lower energy bills.”

Today former Secretary of the Treasury Robert Rubin, General John P. Abizaid, former Combatant Commander of United States Central Command, Carol Browner, former Administrator of the Environmental Protection Agency and other economic, energy, and foreign policy experts gathered in Washington to hold a simulation to examine the potential consequences of U.S. oil dependence and the ability of government officials to respond in the event of a global oil crisis.

Meanwhile, around the world, oil prices spiked again on the world markets, largely based on worries over supply, geopolitical tension, and the higher demand during winter. With the colder winter months approaching, home heating oil is spiking above $3 per gallon in many Northeast locations, where demand is highest for the fuel.

“The specter of $100 oil is scarier than any Halloween costume we’ve seen this week,” said Markey. “With winter approaching, there’s nothing that frightens American families more than the choices they must make to heat, eat, or in many cases just survive.”

America’s oil dependence is dangerously high, as the United States currently imports over 60 percent of its oil from foreign sources. According to Select Committee analysis of trade data, the United States sends $427,233 abroad every minute to pay for foreign oil imports, and $351 million everyday to OPEC countries to fuel America’s oil addiction. These numbers, from trade data available by the United States Census Bureau, only cover total imports through August. With the record prices of late, these figures will grow by year’s end.

“In the eight hours the average American slept last night, $200 million of America’s wealth was transferred overseas to fund our oil addiction, which should make American consumers sleep less soundly tonight,” continued Markey. “American consumers are being turned upside down and having every last cent shaken out of their pockets, with the oil companies holding one leg and the Bush administration holding the other.”

Congress is currently considering two energy bills passed by the House and Senate that would reduce oil dependence and cut global warming pollution. The bill passed in the Senate, which contains the 35 mpg fuel economy standard and other oil saving provisions, would save more than twice as much oil as we currently import from the Middle East by 2030. The House bill contains groundbreaking provisions to increase our use of renewable energy and make our appliances and buildings more efficient. It is estimated that, by 2030, an energy bill with the best provisions from both bills would reduce the total amount of U.S. heat-trapping emissions by roughly 40 percent of what’s needed to save the planet from dangerous global warming.

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