DeGette introduces legislation to prevent gasoline price gouging

WASHINGTON, D.C. – U.S. Rep. Diana DeGette (D-CO) introduced legislation today to prevent U.S. oil and gas producers from excessively increasing the price of gasoline during times of severe disruption.

The measure comes in response to the record-high gas prices that Americans were forced to pay last year after Russia invaded Ukraine.

If approved, the legislation – which DeGette offered as an amendment to a broader energy bill Republicans sought to advance Thursday to limit the president’s ability to release oil from the nation’s Strategic Petroleum Reserve to bring down future skyrocketing gas prices – would require the Secretary of Energy to secure a commitment from any oil and gas producer seeking to increase production under the Republicans’ plan that they will not excessively increase their prices during disruptive events before any such permit can be issued.

“This amendment requires oil and gas companies operating on public lands to make one simple pledge to the American people – that it won’t gouge consumers at the pump,” DeGette said on the House floor to offer her amendment. “If Republicans were serious about helping consumers, then let’s do it – but let’s do it explicitly. Let’s include in this bill a provision that will expressly prohibit these companies from gouging consumers at the pump.”

DeGette, who served as the chair of the House Energy and Commerce Oversight and Investigations panel last Congress – which directly oversees the nation’s energy policies – said the amendment “would help prevent some of the damage” that would be caused by the underlying bill that Republicans are seeking to advance this week – which she urged her colleagues to oppose.

“The bill before us is nothing more than a shameless attempt by my Republican colleagues to help increase drilling.” DeGette said. “If this bill were titled correctly, it would be known as the ‘Big Win for Big Oil Act,’ and it would come at a huge price for the American people.”

If approved, the Republicans’ legislation would bar the administration from releasing any additional oil from the nation’s stockpile until it expanded oil and gas drilling on federal lands.

“There is no relationship between opening up more federal lands for the production of oil and gas, and the price that Americans pay at the pump,” DeGette said. “Instead of helping to bring down prices for consumers, what this bill does is it really makes it harder for future administrations to respond. It takes away the one tool that’s been used effectively to help alleviate the pain consumers were suddenly feeling this past summer - and the one tool we have to prevent it from happening again.”

The text of DeGette’s amendment is available here.

Video of DeGette’s remarks on the floor is available here.

Below is a transcript of DeGette’s remarks:

U.S. Rep. Diana DeGette (D-CO)

Remarks on the House Floor

As Delivered

January 26, 2013

This amendment requires oil and gas companies operating on our public lands to make one simple pledge to the American people – that it won’t gouge consumers at the pump.

It requires the Secretary of the Energy to secure that commitment before any new permit to increase production on our lands will be approved.

It would help prevent some of the damage that this disastrous bill would do to our nation’s ability to address skyrocketing energy prices in the county.

Frankly, the bill before us is nothing more than a shameless attempt by my Republican colleagues to help increase drilling.

If this bill were titled correctly, it would be known as the “Big Win for Big Oil Act” – and it would come at a huge price for the American people.

As the chair of the Energy and Commerce Oversight and Investigations Subcommittee in the last Congress, I’ve been in the frontline of the fight to bring down gas prices in this country.

I led a hearing last year with the top executives from six of the nations’ largest oil producers to have them explain why Americans were suddenly being asked to pay record-high prices at the pump.

And, why Americans should be forced to provide their companies billions of dollars in subsidies each year, when they were reporting record-high profits and hardworking families were struggling hard to fill up their cars.

Despite what the supporters of this bill will tell you, not one executive at that hearing claimed that opening up federal land for drilling would lower prices at the pumps.

In fact, one executive at that hearing even admitted that opening up more land to drilling in the country would do nothing to bring the cost of gasoline down.

Why? Because there is nothing – and I repeat nothing - preventing the oil industry from expanding its production tomorrow, if they wanted to. They just choose not to because of profits.

The oil industry currently leases 26.6 million acres of federal lands.

Less than half of that land, under current lease, 12.7 million acres is currently being used for production.

So there is no relationship between opening up more federal lands for the production of oil and gas, and the price that Americans pay at the pump. None. None.

And, instead of helping to bring down prices for consumers, what this bill does is it really makes it harder for future administrations to respond.

It takes away the one tool that’s been used effectively to help alleviate the pain consumers were suddenly feeling this past summer - and the one tool we have to prevent it from happening again.

It prevents the president from releasing our nation’s oil reserves on to the market during a crisis.

It prevents the administration from taking the steps necessary to curb excessive price increases that can cause real harm to people, families and businesses across this country.

If Republicans were serious about helping consumers, then let’s do it - but let’s do it explicitly.

Let’s include in this bill a provision that will expressly prohibit these companies from gouging consumers at the pump.

My amendment requires the Secretary of Energy to secure from any oil company looking to increase production on federal lands a commitment that it will not excessively increase its prices during periods of future disruption.

It gives oil companies what the Republicans say the industry wants - which is the ability to increase production on America’s public lands, so all we ask for, all we ask for, Mr. Chairman, is a simple commitment they won’t gouge consumers at the pump. 

Sounds like a win-win to me.

I would urge my colleagues to adopt this amendment to the underlying bill.

And I yield back.