DORGAN LEADS CALL TO STOP FILLING STRATEGIC PETROLEUM RESERVE

Friday, March 14, 2008

CONTACT: Justin Kitsch
or  Brenden Timpe
PHONE: 202-224-2551

(WASHINGTON, D.C.) --- Senator Byron Dorgan (D-ND) led a group of all 51 members of the Senate Democratic Caucus calling on President Bush to “bring some relief to American families who are suffering from high energy prices” by immediately suspending putting oil underground into the Strategic Petroleum Reserve (SPR).

Dorgan said it is not in the nation’s interest for the Department of Energy to put nearly 70 thousand barrels of oil underground every single day while the price of oil is hovering around $110.00 per barrel. 

“How much higher do energy prices have to go before this Administration stops putting oil underground, and instead starts putting some downward pressure on gas prices?” asked Dorgan. “Sky-high gas prices are crushing American drivers.”

“We urge you to immediately stop filling the SPR for the remainder of the year unless the price of oil drops below $75 per barrel,” wrote Dorgan and Senators to the President.  “Our federal government should not be pursuing policies that put upward pressure on energy prices when the price of oil is skyrocketing.”

Dorgan said he hopes the Energy Department will take action themselve3s to suspend putting oil underground. If not, Dorgan is prepared to try to stop it through legislation he has authored which calls for a one year pause in putting oil underground as long as the price of oil remains above $75 per barrel.

“With the price of oil at record levels, the American people need help. Yesterday, oil closed at a record high above $108 per barrel, and oil has been trading near or above $100 per barrel since February 19, 2008,” wrote the Senators. “Gas prices have also skyrocketed.  The U.S. average retail price of regular gasoline has reached a new record high of $3.22 per gallon. One year ago, oil was trading at $60.05 per barrel, and the average retail price of gasoline was $2.53 per gallon.  The Administration’s oil fill policy is contributing to this price increase.”

“The SPR is already 97 percent full, and we believe it serves as an important economic and national security buffer. But, according to the Department of Energy, we already exceed our International Energy Program commitments to maintain at least 90 days of oil stocks in reserve,” wrote the Senators. “With oil and gas prices at record highs, it makes no sense to take more oil off the market and sticking it underground.”

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