Politics

DOE Will Start Filling the Strategic Petroleum Reserve While Cost of Oil Is Low

By Karina

From the Select Committee on Energy Independence and Global Warming:

DOE Responds to Markey Request: Will Start Filling the Strategic Petroleum Reserve While Cost of Oil Is Low
Consumers and Taxpayers Benefit by Government Taking Advantage of Low Price of Oil

WASHINGTON DC (January 2, 2009) - After a request issued earlier this week from Rep. Edward J. Markey (D-Mass.) and others to start re-filling the Strategic Petroleum Reserve, the Department of Energy (DOE) announced today it will seek to purchase approximately 12 million barrels of crude oil. Rep. Markey and other members of Congress passed a bill last year that forced the Bush administration to cease filling the reserve during the record price spike of 2008, and encouraged DOE to begin filling the SPR again when prices lowered. The Government Accountability Office (GAO) estimated that had the DOE filled the SPR using a constant dollar value — rather than a constant volume between 2001 and 2005 — it could have reduced costs to taxpayers by more than 10 percent, saving approximately $590 million.

Rep. Markey, who is Chairman of the House Select Committee on Energy Independence and Global Warming, released the following statement:

“Now that the holiday shopping season is over, it appears the Bush administration is finally joining other consumers in shopping for some bargains. Filling our nation’s oil reserves now, when prices are low, is smart energy and economic policy that will benefit consumers and taxpayers. It made little sense to buy oil for the reserve when it was more than $140 a barrel. But now, with prices about $100 lower, resuming the purchase of oil for our reserves is warranted in order to advance America’s long-term energy security goals and save taxpayer money.”

Read the letter on the SPR sent by Chairman Markey and others>>

Full post as published by The Gavel on January 02, 2009 (boomark / email).