WASHINGTON, May 23 – API president and CEO Red Cavaney issued the following statement today following House passage of H.R. 1252:
“We’re disappointed the House is making this bill the cornerstone of its energy policy. It is a flawed political solution to a matter that needs a long-term, viable solution, which includes increased energy efficiency, enhanced access to traditional, domestic oil resources, and diversification of energy supplies.
“The legislation is a cousin of the disastrous 1970s price and allocation controls, which created product shortages and put consumers in gasoline lines. It is discouraging that the lessons of the past are being ignored, which could harm consumers and the nation’s energy security.
“The legislation will discourage bringing more supplies into the market and discourage greater efforts at energy conservation. By capping prices, it would likely spur consumer demand while at the same time discouraging additional supplies. In other words, the legislation will do the exact opposite of what’s needed to bring down prices and strengthen the nation’s energy security.
“There is no question that higher prices are burdening consumers. We understand that. U.S. gasoline production is at record highs, and companies are adding capacity to make even more gasoline. What the House has done today misses the mark – neither adding to supply or reducing demand.”