Pumping up Prices: The Strategic Petroleum Reserve and Record Gas Prices

Select Committee Hearing to Examine Bush Admin. Policy of Filling Strategic Petroleum Reserve with Oil at Record Highs

PLEASE NOTE: This hearing will not be webcast, but will be rebroadcast on CSPAN later today.

WASHINGTON, DC (April 22, 2008) -- $119—a record price for a barrel of oil, reached today.

$3.51—today’s record price for an average gallon of gas in America.

70,000 barrels—the amount of oil the Bush administration buys daily at these record prices to continue filling the Strategic Petroleum Reserve (SPR).

In light of all of these factors, Chairman Edward J. Markey (D-Mass.) and the Select Committee on Energy Independence and Global Warming held a hearing to explore the effect of filling the reserve on the current spike in oil and gas prices and on America’s economy.

The hearing featured representatives from the trucking industry, which has been hit particularly hard by high gas prices, a consumer advocate who will talk about how high gas prices are hitting all drivers and families in America, and several industry analysts to discuss the policies surrounding filling the SPR.

Chairman Markey has called for a three-point plan to reduce gas prices and oil dependence in the short and long term, which includes temporarily ceasing the purchase of oil for the SPR while it is currently at record prices. Chairman Markey says this will send a strong signal to oil speculators who are currently pushing prices to new heights.

“At $119 a barrel, taking significant quantities of oil off of the market to fill the Strategic Petroleum Reserve is like throwing chum into the feeding frenzy of speculation happening on trading floors across the world,” said Chairman Markey. “By continuing to purchase oil at these record prices, the Bush administration is aiding and abetting the highway robbery of American consumers at the pump.”

WHAT: Select Committee hearing: “Pumping up Prices:  The Strategic Petroleum Reserve and Record Gas Prices.”

WHEN: 10 AM, Thursday, April 24, 2008

WHERE: 2212 Rayburn House Office Building, Washington, DC

OPENING STATEMENT: Chairman Edward J. Markey 

WITNESS:

• Dr. Mark Cooper, Director of Research, Consumer Federation of America
• Mr. Dave Berry, Vice President, Swift Transportation Company, Inc., Chairman, Energy and Environment Policy Committee, American Trucking Association
• Mr. Frank Rusco, Acting Director, Natural Resources and Environment, GAO
• Ms. Melanie Kenderdine, Associate Director, Strategic Planning, MIT Energy Initiative
• Mr. Kevin Book, Senior Vice President, Senior Analyst, Energy Policy, Oil & Alternative Energy, Friedman, Billings, Ramsey & Company, Inc.

VIDEO:

Full video archive of hearing.

Chairman Markey closing statement

Question and Answer period

CHARTS:

PHOTOs: 

Rep's Inslee, Blumenauer and Markey

Rep. Larson

Kenderdine, Cooper, Berry, Rusco and Book

Rep. McNerney

Mark Cooper, Consumer Feredation of America

Dave Berry, Swift Transportation, ATA

Melanie Kenderdine, MIT

Kevin Book, Friedman, Billings, Ramsey & Company

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