McNerney Backs Plan to Ease Gas Prices

MCNERNEY BACKS PLAN TO EASE GAS PRICES

Today, Congressman Jerry McNerney (CA-11) voted to bring immediate relief to constituents in Northern California who suffer from some of the highest gas prices in the country.

H.R. 6202, the Strategic Petroleum Reserve Fill Suspension and Consumer Protection Act of 2008, passed the House today by a vote of 385 to 25. The bill would temporarily suspend the filling of the nation's Strategic Petroleum Reserve until the end of the year.

"With gas prices close to or over $4 a gallon in parts of California, it's far past time to take a common sense step like this one to provide a bit of relief," said Rep. McNerney.

The Strategic Petroleum Reserve, with a nearly 730 million barrel capacity, is 97 percent full - the highest level ever. Currently, there are 702 million barrels of crude oil in the Strategic Petroleum Reserve.

Temporarily suspending deliveries to the Strategic Petroleum Reserve could lower gas prices at the pump by as much as 25 cents a gallon, experts estimate. Investment house Goldman Sachs has estimated that filling the reserve has raised oil prices by as much as $6 a barrel and 25 cents a gallon.

Prominent energy economist Philip Verleger agrees, noting his belief that if the suspension of deliveries to the petroleum reserve were to take place, crude prices would fall "dramatically."

Additionally, Dr. Frank Rusco, the Acting Director of the Natural Resources and Environment office at the Government Accountability Office told a Congressional hearing last April, "Taking barrels of oil off the market to put in the Reserve puts upward pressure on prices."

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