Senate Oil Watch

Oil Price Increase a One Day Spike

Must Continue Commitment to Close Budget Gap

For Immediate Release: March 24, 1998 Contact: Senate Majority Press Office at (907) 465-4582

Juneau -- During Tuesday’s Senate session, Senator Drue Pearce, Co-Chair of the Senate Finance Committee, recognized the recent increase in oil prices, said it is unlikely the prices will stay at those levels and asked that the Senate remain committed to closing the fiscal gap between state revenues and spending.

Excerpts from Senator Pearce’s report are written below:

"The price of oil jumped briefly above $13 per barrel. But I wanted to let everybody know that as of 9:36 a.m. this morning, Alaska standard time, Alaska North Slope Crude had fallen back to $12.89 per barrel."

"While I am pleased to see both OPEC and non OPEC nations stepping forward to bring their production down, for at least Saudi Arabia and Venezuela – the production cuts they said they would take merely bring them near their actual OPEC quotas as set last fall. Both countries had been overproducing. So the markets are skeptical."

"While yesterday’s oil price increase was a great one day shot in the arm, and we all hope prices continue to strengthen, but we cannot step back from our commitment to closing the state budget gap by reducing deficit spending."

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Broadcast Note: To hear Senator Pearce’s report, please call the Senate Majority actuality line at 800/478-6540 and go to boxes one and two.
= Drue Pearce, 121 K = Drue Pearce, 97 K