FOR IMMEDIATE RELEASE
Tuesday, April 29, 2008

Chambliss, Isakson Urge President to Halt Deposits into Nation’s Oil Reserve
Move Would Help Stabilize Prices at the Pump

WASHINGTON – U.S. Senators Saxby Chambliss, R-Ga., and Johnny Isakson, R-Ga., today, along with 15 other Republican senators, sent a letter to President Bush requesting that the U.S. Department of Energy immediately halt deposits of domestic crude oil into the U.S. Strategic Petroleum Reserve. 

“I am hearing every day from Georgians about the serious difficulties they are experiencing because of the rising cost of gasoline,” said Chambliss. “While Congress has focused on America’s long-term energy policy, like increasing our reliance on renewable fuels, I believe we should also look at measures that will give folks the immediate relief they need from the pain at the pump. By halting the deposit of crude oil in the strategic petroleum reserve, we will leave a little more oil on the market and allow prices to stabilize.”  

“I share my constituents’ serious concerns with the significant increase in gas and oil prices and its effects on the American economy and on the family budget,” Isakson said. “There are no quick fixes in dealing with this issue, but there are things the federal government can and must do. Temporarily halting deposits to the reserve sends the signal to the global market that the United States will take measures to address excessive oil prices.”

The text of the letter to President Bush is below. In addition to Chambliss and Isakson, the letter was also signed by U.S. Senators Kay Bailey Hutchison, R-Texas, John Barrasso, R-Wyo., Jon Kyl, R-Ariz., John Ensign, R-Nev., Kit Bond, R-Mo., Sam Brownback, R-Kan., Susan Collins, R-Maine, John Cornyn, R-Texas, Elizabeth Dole, R-N.C., Judd Gregg, R-N.H., Orrin Hatch, R-Utah, Lisa Murkowski, R-Alaska, Jeff Sessions, R-Ala., John Sununu, R-N.H., and Ted Stevens, R-Alaska. 

Dear President Bush:

We write today to request that the U.S. Department of Energy (DoE) immediately halt deposits of domestic crude oil into the U.S. Strategic Petroleum Reserve (SPR).  As we enter the busiest driving season of the year, the price of a barrel of West Texas Intermediate crude oil hovers around a record $120.

The SPR was established in 1975 to provide a supply of crude oil during times of severe supply disruptions.  Today, the SPR contains more than 701 million barrels of oil, exceeding our International Energy Program commitments to maintain at least 90 days of oil stocks in reserve. 

High energy prices are having a ripple effect throughout the U.S. economy and exacerbating recessionary pressures.  The Energy Information Agency reports that supplies and inventories of crude oil and refined products are above 2007 inventories while our demand for gasoline is down.  Yet, the price of crude oil has skyrocketed 100% from last year’s levels which were just above $63 a barrel in April, 2007.  Despite these economic realities, the DoE recently solicited contracts to exchange up to 13 million barrels of royalty oil from Federal leases in the Gulf of Mexico for deposits in the SPR.

Some analysts blame geopolitical instability and disruption in production for the rapid price increases; however, these factors alone do not explain the extraordinary increase in oil prices compared to previous years, when these same challenges were present.  Temporarily halting deposits to the reserve can provide some relief because the increased supply of oil available for refinement will send the right signal to all markets that the U.S. Government will take measures necessary to address exorbitant crude oil prices that negatively affect the global economy.  We believe, in light of the dramatic increase in oil prices, a temporary halt to deposits into the SPR should be considered until the economy stabilizes.

 I appreciate your attention to this matter and look forward to hearing back from you. 

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