Lucas, a member of the House Banking Subcommittee that Greenspan was addressing, took the opportunity to shift the Chairman's attention to the vulnerable state of the domestic oil industry.

"Declining energy prices have provided price stability for the nation's consumers of oil," Lucas said. "However, my energy industry constituents feel they have done more than their part in providing this stability. I was interested to know how the Chairman thought this dire situation would impact our nation's economy."

Greenspan said that the lack of increased demand that had been expected in oil exports to Asia is, of course, hurting the U.S. oil industry. Additionally, he mentioned that over production throughout the world has lead to rapidly filling oil storage facilities leading countries to use off-shore tankers for storage.

The Chairman also noted that even though some oil producing countries have cut back production--firming the price at least some since June--the price is still quite low and is having a significant impact on drilling rig activity.

Lucas probed further stating his fear that the spread of this economic downturn in oil prices could take the country through a cycle similar to that of the mid 80's.

"The Chairman seemed to agree that an attempt to help--in some form--our oil producers recover their vitality would be advisable," Lucas said.

Mr. Greenspan is the Chairman of the Federal Reserve. He is required by law to report to the House and Senate Banking Committees quarterly on the economic state of the nation. The questions posed to the Chairman ranged from the economic impact of future tax cuts to whether the Asian financial crisis will continue into the final quarter of 1998. It was in this forum that Congressman Lucas asked energy and agriculture related questions.