Representative Peter Welch Advocates for Strategic Petroleum Reserve Release to Lower Oil Prices

Representative Peter Welch, a Democrat from Vermont and member of the Energy and Commerce Committee, suggested releasing oil from the Strategic Petroleum Reserve to combat the rising oil prices and mitigate their impact on the American people. Welch credited previous releases by Presidents Bush and Clinton, which resulted in significant price reductions of 33%, 19%, and 9% respectively. He emphasized that releasing oil from the reserve would be a signal to speculators that they are not immune to market fluctuations, helping to stabilize prices.

Key Takeaways:

• Representative Peter Welch advocates for releasing oil from the Strategic Petroleum Reserve to lower oil prices, citing previous successful releases by Presidents Bush and Clinton.
• Welch believes the current high oil prices threaten the fragile economic recovery, hurting homeowners, consumers, and small businesses.
• The release of oil from the reserve would send a signal to speculators that they have money at risk if prices fall, helping to stabilize prices.
• Welch notes that the reserve would be replenished once prices decrease, allowing for refilling at lower prices.
• Welch acknowledges the potential cost of refilling the reserve at higher oil prices, but argues that the release is necessary to mitigate the impact of high prices on the American people.

Statistics:

• The Strategic Petroleum Reserve contains 700 million barrels of oil.
• Previous releases of oil from the reserve resulted in price reductions of 33% (first President Bush), 19% (second President Bush), and 9% (President Clinton).
• The current oil price is $45-$46 away from the all-time record high.
• Gas prices in some areas are pushing four dollars a gallon.

Sources:

• Fox News Channel "Happening Now" interview with Representative Peter Welch (D-VT)
• Federal News Service, Inc. (C) 2011, transcript provided