Levin Statement on the DOE Negotiation for Release of Oil from the Strategic Petroleum Reserve

WASHINGTON – Senator Carl Levin (D-MI) reacted to yesterday’s announcement by the Department of Energy that negotiations are underway with oil companies to release oil from the strategic petroleum reserve.

“The Administration’s announcement is too little too late,” said Levin. “I am disappointed that the Administration has not announced that it will suspend further deposits of oil into the SPR. At a time when oil inventories near record lows, and prices are near record highs, it makes little sense to put more oil in the SPR. It makes even less sense to put oil into the SPR at the same time we are taking it out. As the market’s response to the Administration’s announcement indicates, although the Administration’s negotiations may help a couple of oil companies, it will do nothing to provide relief to consumers and businesses from high oil and gasoline prices. I am disappointed that the Administration has used our national reserve to aid a couple of oil companies rather than all American consumers and businesses.”

As then-Chairman and currently as Ranking Member on the Senate Permanent Subcommittee on Investigations, Levin has been calling on the Administration to suspend filling the SPR since the issuance of the Subcommittee staff report in March 2003, U.S. Strategic Petroleum Reserve: Recent Policy Has Increased Costs to Consumers But Not Overall U.S. Energy Security.

On September 14, 2004, the Senate voted 48-47 to overrule a Budget Act point of order (60 votes required) against an amendment co-sponsored by Senators Byrd, Levin and Bingaman to the Homeland Security Appropriations Bill to cancel SPR shipments and use the receipts to increase funding for various homeland security programs. The Administration opposed the amendment.

In March 2004, the Senate passed, 52-43, a Levin-Collins amendment to the Budget Resolution to cancel SPR shipments and use the receipts to increase funding for homeland security programs. The Administration opposed the amendment. The amendment was not included in the Conference Report.

In September 2003, the Senate passed a Levin-Collins amendment to the Interior Appropriations bill, unanimously by voice vote, to require DOE to maximize overall oil supplies and minimize costs to the taxpayers in managing the SPR program. The Administration opposed the amendment. The amendment was not included in the Conference Report.