NEWS FROM THE

House International

Relations Committee

Benjamin A. Gilman, Chairman

DATE: March 28, 2000
FOR RELEASE: Immediate

Contact: Lester Munson, Communications Director (202)225-5021

OPEC ACTION IS "TOO LITTLE, TOO LATE," GILMAN SAYS

WASHINGTON (March 28) -  U.S. Rep. Benjamin A. Gilman (20th-NY), Chairman of the House International Relations Committee, today described a planned increase in production by oil producing nations as "too little, too late to rebuild inventories to make any difference for American consumers over the coming months."

At their meeting in Vienna, Austria, today, the Organization of Petroleum Exporting Countries (OPEC) signaled its intention to raise production by 1.7 million barrels per day.

 "This level of production increase by OPEC is not adequate enough to meet the demand in our nation," Gilman said.  "It is less than half the 4.32 million barrels per day removed from production in the last two years and is unlikely to provide the sorely needed supply to satisfy American consumer demand."

 "The seeds for the current harvest of high gas prices, now approaching $2.00 per gallon, were planted in March 1999, and, regrettably, the Clinton administration let them grow," Gilman continued.

 After a March 1999 OPEC meeting that produced a cut in production, Energy Secretary Bill Richardson noted, "We feel that lower oil prices are good for consumers, but we recognize they can have a negative impact domestically and on some of our friends like Venezuela and Mexico.  So far, OPEC's response has been responsible and restrained."

 "I am very disappointed with the Clinton administration's failure to persuade both OPEC and non-OPEC nations to remove artificial limits on oil production that have fixed oil prices throughout our nation," Gilman said.

 "It appears that the administration ignored OPEC's decision one year ago to cut production levels artificially, to the detriment of the average American and to our economy.  All of the administration's recent efforts have failed to lessen the burden of rising gas prices for the American consumer," Gilman concluded.
 
 

## 30 ##