Gordon Votes To Put More Oil On Marketplace

U.S. Rep. Bart Gordon voted to release more oil to refiners from the nation’s Strategic Petroleum Reserve – a move that has lowered oil prices by as much as 30 percent in the past.

“Current gas prices are the result of a perfect storm – the weakened American dollar, increased global demand for oil, insufficient increases in production and refining capacity, and speculation in the energy futures market,” said Gordon. “There is no silver bullet for solving these challenges, but I intend to take smart, effective steps to help Tennesseans cope with rising gas prices. This bill is one of those steps.”

Gordon voted today (July 24) for H.R. 6578, the Consumer Energy Supply Act. The bill needed approval by two-thirds of the U.S. House of Representatives to pass. While the final vote of 268-157 showed a majority in the House favored the legislation, the bill ultimately failed.

The bill would have released 70 million barrels of light crude oil from the Strategic Petroleum Reserve in exchange for the same amount of heavy crude oil. Light crude oil can be refined into petroleum products such as gasoline at a cheaper rate than heavy crude oil. The bill would require the reserve to be kept at least 90 percent full, ensuring the reserve would have enough oil to meet national security needs.

When President George H.W. Bush released oil from the Strategic Petroleum Reserve in 1991, oil prices dropped by more than one-third. A release of oil in 2000 was followed by a price drop of 19 percent, and a release in 2005 following Hurricane Katrina resulted in a 9 percent drop in oil prices.

“I am disappointed this vote failed,” said Gordon. “Our nation’s energy challenge requires action now. We must explore alternative energy sources, produce more oil domestically, be more efficient and conserve. We can’t just rely on one of these approaches; we need a combination of all of them.”

The bill marks just the latest in a string of attempts to move legislation to bring relief to consumers. In recent weeks, the House has considered bills to crack down on speculation in oil markets, fight price gouging and increase domestic drilling.

On Wednesday (July 23), the House approved the National Energy Security Intelligence Act of 2008. The bill, which now goes to the Senate for consideration, requires an assessment of national security and energy security issues associated with rising energy costs. The bill requires an examination of supply and demand in the short and long term, as well as an assessment of the national security implications of the United States’ energy supply.