March 22, 2000

WASHINGTON, D.C. -- Congressman Don Sherwood today voted for the Oil Price Reduction Act (H.R. 3822), which was overwhelmingly passed by the House by a vote of 382-38.

The Oil Price Reduction Act of 2000:

* calls for the President to adopt a multilateral strategy with other oil consuming countries to work together to addresss potential price fixing and other unfair market practices by oil-producing nations.

* requires the President to report to Congress within 30 days our security relationship with each member nation of the Organization of Petroleum Exporting Countries (OPEC).

* calls for diplomatic efforts with oil exporting countries to reverse prior cutbacks in oil production.

During debate on the bill, Sherwood spoke on the House floor in favor of the bill. Below is his statement:

"I believe that this bill is a step in the right direction. This last winter we in the Northeast were feeling the economic sting of this oil crisis due to high heating oil and diesel prices. Now with the increased gasoline prices, the rest of the country is feeling the pain that we in the northeast have experienced for the last three months. Had it been ruled in order, I was going to offer an amendment today which would require a report from the Administration distilling what our National Energy policy is and how we can reduce our dependency on foreign oil.

"The thrust of my amendment was to address the question everyone is asking: Why didn't we see this crisis coming, and why weren't we prepared to meet it? I am here today to work with you and the members of this chamber to find the answers to these questions. Also, to make sure that we will never be held hostage again by the princes and potentates of the Middle East. These are the same friends for whom, a decade ago, we risked our sons and daughters lives to protect against Iraqi aggression."

"The bottom line is that we lack a coherent national energy policy to insulate us from volatility of these markets. To my knowledge, the only visible policy that the administration has demonstrated is to have Secretary of Energy Richardson globetrot to palaces in the Middle East to plead and petition these princes to ease our burden. And as this drama unfolds more bankruptcies will pile up, more independent trucks will remain parked or be sold, another farmer or family's budget will be busted.

"On March 27th, OPEC will meet to determine our near term economic future. OPEC may extend the existing production cuts and according to the International Energy Agency, global supplies could be as much as 3 million barrels per day below demand in the first quarter of 2000 and as much as 1.5 million barrels per day below requirements in the second quarter. With the price of crude oil rising to $34 a barrel, many analysts believe that we may be faced with gasoline prices up to $2.50 a gallon this summer. Rising oil prices will result in slower economic growth and potentially a recession.

"We need to find both short-term and long-term solutions by which the United States can reduce its dependence on foreign oil supply. These solutions should include but not be limited to: an analysis of options for increasing efficiencies in energy utilization, sales or exchanges of crude oil from the strategic petroleum reserve; increasing natural gas infrastructure and supply to markets in the northeastern United States; establishing a strategic heating oil reserve for the Northeast; and an evaluation of how the United States can increase domestic crude oil production to alleviate risks to national security due to dependence on foreign oil.

"Mr. Speaker, thank you for giving me the opportunity to testify on this most important matter. The time for action is now. We need to craft an effective national energy policy which is prudent, responsive to demand, and sound. Passage of Oil Price Reduction Act is an answer to a part of the problem. I urge my fellow members to pass it."