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The Administration remains concerned about the current oil market situation
and is taking steps to address it. The Administration opposes H.R. 3822
because it would harm ongoing diplomatic efforts to persuade major oil
producing states to expand production and infringe on the President's
constitutional authority.
The Administration is taking every opportunity to convey to senior
officials of OPEC and other major oil producing states its belief that more
oil production is needed. Proceeding with this legislation, particularly
at this time, would harm these diplomatic efforts. The bill also raises
constitutional concerns regarding the President's responsibilities to
conduct foreign affairs by requiring the President to undertake certain
diplomatic actions and to disclose information about these diplomatic
negotiations.
Moreover, the strong performance of our economy over the past year, despite
oil price rises, underscores the dramatic improvements in energy efficiency
and reliability over the past quarter century. Over the long term,
increasing the energy efficiency of the economy provides the best
opportunity to enhance our energy security. The Administration therefore
calls on Congress to pass the Administration's comprehensive package of tax
incentives that promote energy efficiency and renewable sources of energy
for the U.S. economy, and new tax incentives for domestic oil producers to
reduce U.S. reliance on oil imports. The Congress should also fully fund
the Administration's request for natural gas, renewable energy, and energy
efficiency including the funding for weatherization proposed in the FY 2000
Supplemental. In addition, the Administration urges the House to approve
the Administration's proposed Supplemental request for Low Income Home
Energy Assistance Program (LIHEAP).
The Administration also calls for Congress to immediately reauthorize the
Strategic Petroleum Reserve and the International Energy Program at the
Department of Energy. This is necessary to ensure that the President
maintains the ability to use all available tools to respond to the needs of
the U.S. economy. Further, in order to reduce the likelihood that future
heating oil shortages will harm consumers, the Administration calls on
Congress to authorize the creation of a home heating oil reserve in the
Northeast with an appropriate trigger that could supply additional heating
oil to the market in the event of a supply shortage.
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