BILL REQ. #:  H-2430.1 

Read first time .   Referred to .

     TO THE HONORABLE GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES, AND TO THE PRESIDENT OF THE SENATE AND THE SPEAKER OF THE HOUSE OF REPRESENTATIVES, AND TO THE SENATE AND HOUSE OF REPRESENTATIVES OF THE UNITED STATES, IN CONGRESS ASSEMBLED, AND TO THE HONORABLE SPENCER ABRAHAM, SECRETARY OF THE UNITED STATES DEPARTMENT OF ENERGY:
     We, your Memorialists, the Senate and House of Representatives of the State of Washington, in legislative session assembled, respectfully represent and petition as follows:
     WHEREAS, The strategic petroleum reserve was first established in the 1970s to provide a source of crude oil to meet United States needs in the event of a severe disruption in petroleum supply; and
     WHEREAS, In 2001, the president directed the federal department of energy to fill the strategic petroleum reserve to its maximum capacity of seven hundred million barrels as quickly as possible; and
     WHEREAS, In 2002, the federal department of energy decided to fill the strategic petroleum reserve without regard to crude oil prices; and
     WHEREAS, Crude oil price increases caused by strategic petroleum reserve deposits spiked spot prices of home heating oil by thirteen percent, jet fuel by ten percent, and diesel fuel by eight percent; and
     WHEREAS, The strategic petroleum reserve now holds six hundred million barrels of crude oil, the largest volume in its history; and
     WHEREAS, Crude oil prices are nearing a twelve-year high; and
     WHEREAS, In the past, when faced with spiking oil prices, oil companies delivering crude oil to the strategic petroleum reserve have delayed deliveries; and
     WHEREAS, Decisions to defer scheduled oil deliveries when oil prices were high, in exchange for deposits of extra oil at a later date, resulted in lost opportunities for taxpayer savings; and
     WHEREAS, When oil prices have exceeded thirty dollars per barrel, administrations have ordered oil to be released from the strategic petroleum reserve; and
     WHEREAS, The federal department of energy continues to plan for delivery of some of the largest crude oil shipments to the strategic petroleum reserve in years; and
     WHEREAS, Putting oil into the reserve will reduce world oil supplies, and drive crude oil prices higher; and
     WHEREAS, This plan will cause the economic damage that the strategic petroleum reserve was designed to prevent; and
     WHEREAS, Rising crude oil prices hurt American consumers and businesses by increasing the cost of gasoline and oil for consumers and increasing operating costs for business; and
     WHEREAS, Oil companies and oil-producing countries profit at the expense of these consumers and businesses;
     NOW, THEREFORE, Your Memorialists respectfully pray that the federal department of energy suspend further strategic petroleum reserve deposits until surging crude oil prices stabilize, consumers get relief from rising prices for gasoline, home heating oil, and other petroleum products, and commercial inventories increase; and
     Your Memorialists further respectfully pray that, if delayed deliveries are not possible, the federal department of energy should calm markets by immediately releasing any delivered oil into the marketplace; and
     Your Memorialists further respectfully pray that the federal department of energy restore market-based criteria for granting deferrals.
     BE IT RESOLVED, That copies of this Memorial be immediately transmitted to the Honorable George W. Bush, President of the United States, the Honorable Spencer Abraham, Secretary of the United States Department of Energy, the President of the United States Senate, the Speaker of the House of Representatives, and each member of Congress from the State of Washington.