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News from Rep. Stephanie Herseth Sandlin
For Immediate Release
Contact: Russ Levsen, 202-226-4449
Chip Weiskotten, 202-226-8553

HERSETH SANDLIN: BIG OIL STANDING IN THE WAY OF RELIEF AT THE PUMP

Rejects Outrageous Statements about Ethanol Made by Leader of Top Oil Industry Group

May 24, 2007, Washington, D.C. - U.S. Rep. Stephanie Herseth Sandlin responded to inaccurate and outrageous comments made about ethanol by the president of Big Oil’s industry trade organization at a press briefing in Washington D.C earlier this week.

In a May 23, 2007 Roll Call article titled, “Big Energy Decries Democratic Policy Reversals,” Red Cavaney, President and CEO of the American Petroleum Institute derided Congressional efforts to promote biofuels like ethanol, calling such efforts “a joke that is being played on the American people.” With respect to E-85, Cavaney said, “The demand is not there.” He also criticized and dismissed the value of anti-price gouging legislation that passed the House of Representatives today, which would give the Federal Trade Commission the authority to investigate and punish companies that artificially inflate the price of gas.

Rep. Herseth Sandlin said, “These statements from the leader of the oil industry’s top advocacy group are outrageous. From day one, the oil industry has done everything in its power to prevent the development of a renewable fuels infrastructure in this country in a self-serving attempt to protect the skyrocketing price of oil, resulting in record profits. With the average price of a gallon of gas in South Dakota at $3.38 and rising, we should be doing more, not less to establish energy independence - but Big Oil continues to work against us.”

Rep. Herseth Sandlin continued, “The cruel joke here is the record profits oil company executives are making on the backs of hard-working families like those in South Dakota and across the country. If Mr. Cavaney has any doubt about the demand for renewable fuels like ethanol, he need only ask the thousands of South Dakota families who produce ethanol feedstocks, invest in ethanol plants, or put an ethanol blend in their cars and trucks on a regular basis.”

Rep. Herseth Sandlin has authored legislation that would greatly expand the production of biofuels in the U.S. and would drive the development of needed infrastructure improvements, such as the increased production of flex-fuel automobiles and installation of ethanol and biodiesel pumps around the country.

The six largest oil companies announced $30 billion in profits for the first quarter of 2007. This is on top of the $125 billion in record profits they made in 2006.

According to data released by the Energy Information Administration (EIA) and the Renewable Fuels Association (RFA), U.S. ethanol production in February, 2007 reached an all-time high of 386,000 barrels per day (b/d) while demand continued to creep higher at 416,000 b/d.

On Tuesday of this week, the House approved H.R. 2264 to authorize the Justice Department to take legal action against OPEC state-controlled entities that participate in conspiracies to limit the supply, or fix the price, of oil.

On Wednesday, the House passed the Federal Price Gouging Prevention Act, H.R. 1252, which would give the Federal Trade Commission new authority to investigate and prevent artificial manipulation of the price of gas. The bill sets criminal penalties for price gouging, and permits states to bring lawsuits against wholesalers or retailers who engage in such practices.

Rep. Herseth Sandlin supported both H.R. 1252 and H.R. 2264, and both passed with wide bipartisan majorities. Unfortunately, President Bush has threatened to veto both pieces of legislation.

In addition to the legislation approved this week, the House earlier this year voted to roll back $14 billion dollars in taxpayer subsidies for Big Oil companies and reinvest the money in clean, renewable fuels, alternative energy and energy efficiency.

Because of her focus on the value of renewable fuels to our national security and energy security, earlier this year Rep. Herseth Sandlin was named to the Select Committee on Energy Independence and Global Warming.

# # #

Congresswoman Stephanie Herseth Sandlin serves South Dakota in the U.S. House of Representatives. She is a member of the Blue Dog Coalition, a group of moderate Democrats committed to fiscal discipline and strong national security, and is co-chair of the Rural Working Group, which is dedicated to raising the profile of issues important to rural America. She also serves on three committees vital to South Dakota’s interests: Agriculture, Veterans’ Affairs and Resources. In the 110th Congress, Herseth Sandlin was appointed to serve on the Select Committee on Energy Independence and Global Warming.