FOR IMMEDIATE RELEASE
March 22, 2000
CONTACT: David Foy
(661) 254-2111


McKEON PUTS PRESSURE ON CLINTON TO STOP
OIL PRICE FIXING

Clinton-Gore Administration Was ‘Caught Napping' by Rising Gas Prices; House Passes Bill Requiring Price Fixing to be Considered
by Administration

WASHINGTON – U.S. Rep. Howard P. "Buck" McKeon, R-Santa Clarita, pointing to admissions by the Clinton-Gore Administration that it was "caught napping" by rising fuel prices, today voted for a bill that would require the administration to exercise diplomatic pressure to reduce fuel prices.

The House today approved, on a vote of 382 to 38, H.R. 3822, the Oil Price Reduction Act. The bill now goes to the Senate.

The bill states it is the policy of the United States to determine its relations with major oil exporting nations based on whether such nations engage in oil price-fixing; and to work with other major oil importing nations to completely dismantle international oil price-fixing arrangements.

The bill requires the president to report to Congress on the overall economic and security relationship between the U.S. and each major net oil exporting nation; how coordination among OPEC nations regarding oil production and pricing has affected the U.S. economy and global oil prices; U.S. assistance programs that are provided to oil-exporting nations; and which countries are engaged in oil price-fixing that harms the U.S. economy.

"It is sad that the Congress of the United States has to instruct the president to do the right thing and protect American consumers, but again we are forced into this position," McKeon said. "We've spent billions of dollars and risked thousands of American lives to protect OPEC countries, and yet the Clinton-Gore administration has done virtually nothing to put pressure on OPEC nations to cut the price of gasoline."

McKeon pointed to statements by Energy Secretary Bill Richardson, who acknowledged to the Associated Press on Feb. 16, 2000 that the Clinton-Gore administration failed to anticipate the increase in energy costs: "It was obvious that the federal government was not prepared. We were caught napping," Richardson said.

McKeon noted that gasoline prices increased 12.9 percent in February alone, and home heating oil prices skyrocketed 30.6 percent during the same period. The Labor Department last week announced that inflation had its largest gain in 10 years, due solely to soaring gas and energy prices.

"These rising fuel prices are a burden to everyone, but particularly in my 25th District," McKeon said. "In the Antelope, Santa Clarita and San Fernando valleys, tens of thousands of people drive more than 40 or 50 miles a day to work every day. They are facing a severe burden."

McKeon has also signed on as an original co-sponsor of H.R. 3844, to repeal the so-called "Gore Gas Tax" – a tax hike of 4.3 cents per gallon that was imposed by a Democrat-controlled Congress in 1993. Vice President Al Gore had cast the deciding vote to break a tie in the Senate and send the Gore Tax to President Clinton, who signed it. Every Republican in the House voted against it.

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