CEA Responds to Energy Department’s Decision to Release Oil from the Strategic Petroleum Reserve
Other Available Options Would Provide Twice as Much Oil, Create More Jobs
WASHINGTON, DC – Today the U.S. Department of Energy announced that it would be releasing 30 million barrels of oil from the Strategic Petroleum Reserve (SPR) to address potential supply disruptions due to growing unrest in the Middle East.
In response, Consumer Energy Alliance (CEA) executive vice president Michael Whatley issued the following statement:
“We appreciate that the Administration recognizes the need to put more oil into the U.S. economy, but there are other steps that they could be taking to increase supplies of oil and reduce prices of gasoline and diesel on a more permanent basis.
“For example, granting the permits to explore and produce in the Chukchi and Beaufort Seas in Alaska would allow us to fill the TransAlaska Pipeline and bring 1.37 million barrels per day to U.S. markets. Further, granting the Presidential Permit necessary to build the Keystone XL pipeline project would bring 700,000 barrels per day from Alberta, the Dakotas and Oklahoma to the Gulf Coast refineries, and returning the Gulf of Mexico to its pre-Macondo production levels would add 130,000 barrels per day. The sum total of these three steps – all of which can be done by the Administration today – would increase supplies by 2.2 million barrels of oil per day. This is not only more than twice the 1 million barrels per day that the Administration is planning to release from the SPR; it’s also a permanent boost in contrast to the Administration’s 30 day plan. In addition, granting permits for Alaska, Keystone XL and the Gulf of Mexico would create 114,700 high-paying American jobs.
“We think that this would be a better long term plan to increase available oil supplies, lower gasoline and diesel prices, and put Americans back to work than a temporary shot in the arm from the Strategic Petroleum Reserve.”