SJ 32 PCSCommentsClose CommentsPermalink

Limiting the issuance of a letter of offer with respect to a certain proposed sale of defense articles and defense services to the Kingdom of Saudi Arabia.CommentsClose CommentsPermalink

May 13, 2008

Mr. SCHUMER (for himself, Mr. DORGAN, Mr. CASEY, Ms. KLOBUCHAR, and Mr. SANDERS) introduced the following joint resolution; which was read the first timeCommentsClose CommentsPermalink

May 14, 2008

Read the second time and placed on the calendarCommentsClose CommentsPermalink

Limiting the issuance of a letter of offer with respect to a certain proposed sale of defense articles and defense services to the Kingdom of Saudi Arabia.CommentsClose CommentsPermalink

Whereas record-high gasoline prices are placing considerable fiscal strain on American households that are already burdened by a weakening United States economy;CommentsClose CommentsPermalink

Whereas the increase in gasoline prices is principally due to the increasing price of crude oil, which has reached a price of more than $120 per barrel in recent weeks, the highest price on record in inflation-adjusted terms;CommentsClose CommentsPermalink

Whereas, because United States gasoline refiners must purchase crude oil on the world market, the price they pay is highly sensitive to crude oil production decisions made by entities with significant shares in the market;CommentsClose CommentsPermalink

Whereas since 1973, the Organization of the Petroleum Exporting Countries (OPEC) has cartelized the crude oil market, effectively controlling the supply and price of petroleum products;CommentsClose CommentsPermalink

Whereas the Kingdom of Saudi Arabia, through the nationalized oil company Saudi Aramco, controls 98 percent of the more than 260,000,000,000 barrels of crude oil reserves in Saudi Arabia, and daily production of crude oil in Saudi Arabia constitutes more than 10 percent of the world daily production of crude oil;CommentsClose CommentsPermalink

Whereas, as the dominant member of Organization of the Petroleum Exporting Countries, the Kingdom of Saudi Arabia has historically exercised considerable market power by producing between 1,000,000 and 5,000,000 barrels of crude oil per day below its maximum daily capacity;CommentsClose CommentsPermalink

Whereas in April 2008, crude oil production by the Kingdom of Saudi Arabia was nearly 2,000,000 barrels per day below its maximum daily capacity;CommentsClose CommentsPermalink

Whereas crude oil production by the Kingdom of Saudi Arabia in 2007 was approximately 800,000 barrels per day less than in 2005;CommentsClose CommentsPermalink

Whereas energy economic analysis has determined that, holding world demand constant, an increase by one percent of the crude oil supply of the world results in a reduction by between 20 percent and 25 percent in world crude oil prices in the near term;CommentsClose CommentsPermalink

Whereas, according to this analysis, an increase in crude oil production by the Kingdom of Saudi Arabia by 1,000,000 barrels per day, which would result in an increase in world crude oil supply of more than one percent, could--CommentsClose CommentsPermalink

(1) reduce world oil prices by between 20 percent and 25 percent, and result in a reduction in the price of a barrel of crude oil by more than $25 per barrel from the current price of $126 per barrel; andCommentsClose CommentsPermalink

(2) in turn, reduce the price of gasoline by between 13 percent and 17 percent, or by more than 62 cents off the expected summer regular-grade price of $3.66 per gallon;CommentsClose CommentsPermalink

Whereas, despite the refusal of the Kingdom of Saudi Arabia to increase its oil production, the Administration continues to reward Saudi Arabia with lucrative arms deals;CommentsClose CommentsPermalink

Whereas, since October 2007, the Administration has offered to sell the Kingdom of Saudi Arabia $1,400,000,000 worth of arms, including 900 Joint Direct Attack Munition (JDAM) kits, which are applied to conventional bombs to make them laser-guided bombs; andCommentsClose CommentsPermalink

Whereas the Administration should cease the sale of weapons to Kingdom of Saudi Arabia unless and until it increases its production of crude oil: Now, therefore, be itCommentsClose CommentsPermalink

Resolved by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. LIMITATION ON CERTAIN PROPOSED SALES OF DEFENSE ARTICLES AND DEFENSE SERVICES TO THE KINGDOM OF SAUDI ARABIA.

(a) Limitation- The issuance of a letter of offer with respect to each proposed sale of defense articles and defense services to the Kingdom of Saudi Arabia specified in subsection (b) is hereby prohibited unless the Kingdom of Saudi Arabia--CommentsClose CommentsPermalink





(1) commencing not later than 30 days after the date of the enactment of this Joint Resolution, increases its oil production by 1,000,000 barrels of oil per day in excess of its oil production as of January 1, 2008 (as reported by the International Energy Agency); andCommentsClose CommentsPermalink





(2) maintains such increased oil production for not less than 90 days after the date on which such increased oil production is reached (as so reported).CommentsClose CommentsPermalink





(b) Proposed Sales of Defense Articles and Defense Services- The proposed sales of defense articles and defense services to the Kingdom of Saudi Arabia specified in this subsection are the proposed sales as follows:CommentsClose CommentsPermalink





(1) The proposed sale of defense articles and defense services to the Kingdom of Saudi Arabia described in the certifications transmitted to the Speaker of the House of Representatives and the Chairman of the Committee on Foreign Relations of the Senate pursuant to section 36(b) of the Arms Export Control Act on October 4, 2007 (Transmittal Number 08-03).CommentsClose CommentsPermalink





(2) The proposed sale of defense articles and defense services to the Kingdom of Saudi Arabia described in the certifications transmitted to the Speaker of the House of Representatives and the Chairman of the Committee on Foreign Relations of the Senate pursuant to section 36(b) of the Arms Export Control Act on December 7, 2007 (Transmittal Number 08-28).CommentsClose CommentsPermalink





(3) The proposed sale of defense articles and defense services to the Kingdom of Saudi Arabia described in the certifications transmitted to the Speaker of the House of Representatives and the Chairman of the Committee on Foreign Relations of the Senate pursuant to section 36(b) of the Arms Export Control Act on December 7, 2007 (Transmittal Number 08-29).CommentsClose CommentsPermalink





(4) The proposed sale of defense articles and defense services to the Kingdom of Saudi Arabia described in the certifications transmitted to the Speaker of the House of Representatives and the Chairman of the Committee on Foreign Relations of the Senate pursuant to section 36(b) of the Arms Export Control Act on January 14, 2008 (Transmittal Number 08-18).CommentsClose CommentsPermalink

Calendar No. 736CommentsClose CommentsPermalink

Limiting the issuance of a letter of offer with respect to a certain proposed sale of defense articles and defense services to the Kingdom of Saudi Arabia.CommentsClose CommentsPermalink

May 14, 2008