Congressman Paul Hodes Commends President Bush for Signing the Strategic Petroleum Reserve Suspension Bill, Votes to End Price G

For Immediate Release

May 20, 2008

Contact:        Mark Bergman

                202-225-5206 (office)

Congressman Paul Hodes Commends President Bush for Signing the Strategic Petroleum Reserve Suspension Bill, Votes to End Price Gouging

Washington, DC--- Today, Congressman Paul Hodes commended President Bush for signing the legislation to temporarily suspend the filling of the Strategic Petroleum Reserve (SPR) through the end of the year, as long as the price of crude oil remains above $75 per barrel.  Current shipments to the Strategic Petroleum Reserve, which is now 97 percent full, will end on June 30.   Congressman Hodes is a co-sponsor of the legislation and has written to President Bush calling on him to suspend shipments to the SPR.

Filling of the SPR takes 70,000 barrels of oil off the market each day and a temporary suspension could reduce gas prices from 5 to 24 cents a gallon, which would be a critical first step for America’s families, businesses, and the economy.  [EIA, 4/08; Testimony by Philip Verleger, Petroleum Economist, 12/07]

“Soaring gas prices are hurting working New Hampshire families struggling with the economic downturn,” Congressman Paul Hodes said. “Suspending shipments to the Strategic Petroleum Reserve will provide immediate relief to families before the summer driving season.

“It took an overwhelming bipartisan Congressional action for President Bush to finally to change his position, but for the families across New Hampshire struggling with record high gas prices, I am glad he did,” Congressman Hodes concluded.

Congressman Hodes also voted to curb the practice of price gouging by allowing legal action against the foreign oil cartels. Congressman Hodes is an original co-sponsor of HR 6074, the Gas Price Relief for Consumers Act of 2008 that passed on a bipartisan vote of 324-84.

With record levels of U.S. dependence on foreign oil and the U.S. importing nearly 6 million barrels of crude oil per day from Saudi Arabia and other OPEC countries, American consumers remain at the mercy of OPEC nations in how much they pay to fill up their tanks.

This bill makes clear that OPEC and other nations are not given foreign immunity when acting in a commercial capacity and are engaged in price-fixing and other anticompetitive activities.  It authorizes lawsuits in U.S. federal court against oil cartel members by the Justice Department.  The bill also creates a new Department of Justice Petroleum Industry Antitrust Task Force to examine the existence and effects of price gouging in the sale of gasoline, anticompetitive price discrimination by petroleum refiners, unilateral actions to withhold supply in order to inflate the prices, and manipulation in futures markets.

“We don’t have to continue to stand by and watch Arab oil cartels dictate the price of our gasoline without any recourse,” Congressman Paul Hodes said.  “It is time to give U.S. authorities the ability to prosecute anticompetitive conduct committed by international cartels that restricts supply and drives up prices. 

“New Hampshire families are struggling with record high gas prices along with all of the other mounting economic pressures. This legislation will put a stop to price gouging by foreign cartels that hurt our families’ wallets with price fixing.”