Pelosi to Cheney: Reduce Oil Prices Through OPEC Negotiations

March 13, 2008

The Honorable Richard B. Cheney

Vice President

The White House

1600 Pennsylvania Avenue NW

Washington, DC20500

Dear Mr. Vice President:

The price of a barrel of oil has surged to new historic highs each day, even when adjusted for inflation, and the price at the gas pump is projected to do the same in the coming months. Light sweet crude oil surpassed $110 a barrel today, a 407 percent increase since President Bush took office. Gas prices have reached record levels of $3.27 a gallon and the oil imported from foreign countries has grown to 60 percent of our total since President Bush took office. These prices and our growing dependence on foreign oil have caused great hardship for American families and businesses struggling to make ends meet in this economic downturn.

The landmark Energy Independence and Security Act of 2007, passed with strong bipartisan support in Congress last December, took strong steps toward reducing oil consumption.  Now, your upcoming trip to the Middle East provides an opportunity for you, on behalf of the Bush Administration, to call upon your considerable influence with OPEC nations to encourage oil producing countries to increase their oil production. President Bush has endorsed the idea of an American President 'jawboning' oil producing states to expand production when rising prices jeopardized economic stability. This must be another critical step as part of a comprehensive plan here at home to lower energy costs for the American consumer, increase energy independence, and enhance our national security.

In addition to diplomatic efforts during your trip, the Administration should also support efforts pending in Congress to promote energy independence and save consumers money:

In a strong bipartisan vote last May, the House passed legislation to crack down on price fixing by authorizing legal action against oil cartels that conspire to inflate prices.  That bill, H.R. 2264, is now pending in the Senate.  Unfortunately, the Bush Administration has announced its opposition to this bill which would benefit millions of American consumers.  Instead of issuing veto threats, the President should support this legislation to give the Administration a vital tool to fight price-fixing by OPEC cartel entities.

The House of Representatives has again passed legislation to significantly expand our renewable American energy industry in a fiscally responsible way, paid for by ending taxpayer subsidies to the five largest oil companies which are earning record profits.  This legislation is pending in the Senate.  These subsidies cannot be condoned at today's historically high oil prices.  When oil was just $55 a barrel--half the current price--the President said that such subsidies could no longer be justified.  We agree and hope he will actively support this legislation to direct our energy dollars from subsidies for oil companies to development of alternatives to increase our energy independence and improve our national security.

While the 110th Congress has great differences with you and President Bush on your energy policies over the last seven years, I sincerely hope your visit to Saudi Arabia brings relief to the American people that could have ripple effects across our economy.  I also hope your mission advances the cause of peace throughout the region.

best regards,

NANCY PELOSI

Speaker of the House