In an attempt to lower gasoline prices, Rep. Mark Udall, D-Colo., has proposed halting the government’s stockpiling of crude oil in the Department of Energy’s Strategic Petroleum Reserve.
Udall, who unveiled his proposal Tuesday, said gasoline prices could fall by 25 cents a gallon by not storing away millions of barrels of oil every month.
“We know from history that it’s worked when you suspend filling the (Strategic Petroleum Reserve),” Udall said.
The United States began storing crude oil in the wake of the shortages of the 1970s.
The Strategic Petroleum Reserve, according to the Energy Department, held 702 million barrels of oil as of Tuesday.
Congressman John Salazar, D-Colo., said he likes Udall’s plan to stop storing oil away in the Strategic Petroleum Reserve.
“I would support putting a moratorium on that, so that we can actually make more available on the marketplace,” Salazar said. “That always seems to have an immediate impact.”
Salazar represents most of the Western Slope and southern Colorado.
Udall said he hopes to combine his plan for the Strategic Petroleum Reserve with eliminating tax breaks for oil companies, increasing drilling in the Gulf of Mexico and removing barriers to ethanol imports, which should lower gas prices over the long term.
“We’re not going to drill our way out of this,” Udall said.
According to AAA, the average price of a gallon of regular gasoline in Colorado sold for $3.516 on Tuesday; a gallon of regular was selling for $3.541 in Grand Junction.
Dick Wadhams, campaign manager for Republican Bob Schaffer, Udall’s opponent in the 2008 U.S. Senate race, said he thought it was rich that Udall has proposed getting rid of unspecified tax breaks for energy companies.
“I’m sure it’s a great applause line,” Wadhams said.
He also attacked Udall for working against domestic energy production.
“This is a token gesture designed to obscure his very sorry record in killing domestic oil production,” Wadhams said.
He said Schaffer plans to roll out his energy plan later this year.
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E-mail Mike Saccone at msaccone@gjds.com.