44TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 1999

REQUESTING THE UNITED STATES CONGRESS TO RESPOND TO THE OIL PRICE CRISIS.

WHEREAS, the oil and natural gas industry in the United States has been devastated by a sustained period of low commodity prices; and

WHEREAS, up to sixty percent of United States oil production is now at risk; and

WHEREAS, without a sound domestic oil production industry, the United States will not be able to maintain and expand its domestic natural gas production; and

WHEREAS, the loss of substantial volumes of domestic oil production will place the United States energy security in the hands of foreign governments; and

WHEREAS, the federal government has the ability to enact laws and take further action to strengthen the domestic industry;

NOW, THEREFORE, BE IT RESOLVED BY THE SENATE OF THE STATE OF NEW MEXICO that the United States congress be requested to respond to the oil price crisis by:

A. filling the strategic petroleum reserve with petroleum purchased from domestic producers;

B. reducing tax penalties on marginal wells and new investment;

C. establishing a low-cost disaster loan program for producers;

D. investigating allegations of improper trade practices within United States markets by foreign oil suppliers; and

E. reforming regulations affecting the oil and gas industry; and

BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the New Mexico congressional delegation.