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FOR IMMEDIATE RELEASE: May 19, 2004

SCHUMER: WITH NY GAS PRICES HIGHEST EVER, SENATE WILL ATTEMPT UNPRECEDENTED STEP TO DEMAND PRESIDENT TO RELEASE OIL RESERVES TO DROP GAS PRICES

New Schumer report finds that the Average Upstate New York family with 2 cars could pay $625 more on gas this year if prices stay this high

New Senate Resolution puts the full weight of Senate behind releasing a million barrels of oil a day into market to bring prices down quickly

With gas prices in upstate New York at their highest of all time, US Senator Charles E. Schumer today released a new report showing that New York families with two cars could see their gas bills shoot up $625 over last year if prices remain this high. To keep prices from skyrocketing even further, Schumer yesterday introduced a Senate Resolution calling on the Administration to release one million barrels of oil a day for 30 days with an option to extend the release program for an additional 30 days. The resolution will also ask the White House to leverage pressure against OPEC to increase oil production.

"Gas prices are burning a hole in New Yorkers' wallets, putting at risk the economic recovery, and the Administration insists on throwing fuel on the fire," said Schumer. "Instead of playing our one ace in the hole and releasing oil from the Strategic Petroleum Reserve to help cut prices, they are buying oil on the market and driving up prices even higher."

Gasoline prices across New York have hit record highs in the past week– with the average price for one gallon of unleaded gasoline up to $2.11 in New York– a full 11 cents higher than the national average of $2.00 per gallon. These record prices were not unexpected – not only have the average retail prices of gasoline nationwide broken all-time record highs for two consecutive months, but one week ago today, on May 7, crude oil prices reached a 13-year high of $40 per barrel.

Schumer today released a new analysis of how record high gas prices in upstate New York could cripple families in each county of the state. According to the report, if gas prices continue to increase at its current level (as much

as 59 cents per gallon since last July), the cost for a year's supply of gasoline would go up $625 for the average family, specifically:

• The average Capital Region family with 2 cars could pay $751 more in gas bills this year if prices stay this high;
• The average Central New York family with 2 cars could pay $684 more in gas bills this year if prices stay this high;
• The average Rochester/Finger Lakes family with 2 cars could pay $592 more in gas bills this year if prices stay this high;
• The average Hudson Valley family with 2 cars could pay $518 more in gas bills this year if prices stay this high;
• The average North Country family with 2 cars could pay $752 more in gas bills this year if prices stay this high;
• The average Southern Tier family with 2 cars could pay $731 more in gas bills this year if prices stay this high;
• The average Western New York family with 2 cars could pay $603 more in gas bills this year if prices stay this high.
[For county-by-county breakdowns please see attached report.]

As gas prices were approaching these record highs, the Organization of Petroleum Exporting Countries (OPEC) announced its commitment to reduce oil production by a million barrels a day. And just as prices hit these record highs, a letter was released yesterday in which U.S. Secretary of Energy Spencer Abraham told a Member of Congress not only that he did not plan to release oil from the Strategic Petroleum Reserve (SPR), but that he will continue to take oil off the market to be added to the reserves.

Secretary Abraham made this announcement despite the fact that the reserves are already more than 94% full. Energy experts have concluded that the Administration's current policy of filling the SPR at a rate of hundreds of thousands of barrels a day has contributed to record-high gasoline contract prices on the New York Mercantile Exchange.

On Tuesday, Senator Schumer joined by Senators Barbara Mikulski, Jon Corzine, Ron Wyden, Barbara Boxer, Debbie Stabenow, Diane Feinstein unveiled a new Senate Resolution to take on OPEC and release oil reserves. The Resolution notes that the SPR was created to enhance the physical and economic security of the United States, and under law the SPR can be used to provide relief when oil and gasoline supply shortages cause economic hardship. Finding that the Administration has SPR in a way that would counter-balance OPEC supply management policies and provide gas relief to working families, the Resolution says that the President should directly confront OPEC and challenge the cartel to immediately increase oil production. The Resolution also calls on the President to suspend oil deliveries to the SPR and instead release a million barrels of oil a day for 30 days, and for another 30 days after that if necessary.

As gas prices soared during the summer and fall of 2000, President Clinton responded to Schumer's repeated calls to tap into the Strategic Petroleum Reserve by releasing 30 million barrels over 30 days. This action provided rapid price relief and stabilized gasoline prices over the long-term. The Clinton Administration then replaced those 30 million barrels in the SPR by purchasing fuel at the new, lower prices, thereby providing gas price relief at a net savings to taxpayers.

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