Republicans denounced move as politically motivated and counterproductive
WASHINGTON -- The Obama administration announced plans Thursday to release 30 million barrels of oil from the Strategic Petroleum Reserve in an effort to force lower fuel prices for the summer driving season and offset losses from war-torn Libya.
A beer slogan on the side of a truck shows up above a vehicle filling up in Sheboygan, Wis., last month. The Obama administration announced Thursday it would release 30 million barrels of oil from the Strategic Petroleum Reserve.But Republicans denounced the move as political and counterproductive, while the Democratic chairman of the Senate Energy Committee said he wished the administration had acted sooner.
"As long as they continue to virtually shut down energy exploration here at home, this opening of the reserve will do absolutely nothing to help our long-term supply problem, and it certainly won't put the Gulf energy industry back to work," said Sen. David Vitter, R-La., expressing the view of other Louisiana lawmakers.
But Energy Secretary Stephen Chu said the release from the Strategic Petroleum Reserve, combined with a separate 30 million barrel release by the International Energy Agency -- both within the next 30 days -- offsets the loss of 1.5 million barrels of oil daily from Libya.
"As we move forward, we will continue to monitor the situation and stand ready to take additional steps if necessary," Chu said. He said the strategic oil supply, stored in caverns along the Gulf Coast, including Louisiana, is at a historically high level of 727 million barrels.
But the price at the pump isn't a reason to release oil from the reserves, industry officials and Louisiana congressional members said.
"A release from the reserve at this time is bad public policy and is not consistent with the original intent of the SPR," said Chris John, president of the Louisiana Mid-Continent Oil and Gas Association and a former Louisiana congressman.
Rep. Jeff Landry, R-New Iberia, said the administration should be issuing drilling permits in Alaska and the Gulf of Mexico instead of engaging in "political stunts."
But Rep. Ed Markey, D-Mass., accused the GOP of protecting oil company profits because even a small release from the reserves will push prices downward. By contrast, GOP bills authorizing increased production won't result in any immediate production gains, he said.
"Republicans are actually attacking the one energy policy initiative that will actually help American families right now," Markey said.
The last two times a president tapped the SPR came during the 1991 Persian Gulf War and shortly after Hurricanes Katrina and Rita in 2005.
Administration officials said the announcement is timed to complement modest production increases announced by several leading producing nations, as well as the president's commitment to expedite more domestic production even in the face of last year's massive BP oil spill.
Senate Energy Committee Chairman Jeff Bingaman, D-N.M., said the impact of the strategic reserves release would have been greater if it occurred several months ago when prices escalated to more than $4 a gallon.
The price has been dropping steadily during the past three weeks, falling to $3.61 a gallon nationally Thursday, according to AAA. But that's still 87 cents higher than a year ago.
"I hope it helps deflate speculative froth in the markets and further settles prices back to levels where most experts believe they should be," Bingaman said.
Rep. Steve Scalise, R-Jefferson, saw nothing to like in Thursday's administration announcement.
"Rather than creating jobs by exploring for known reserves of American energy, the Obama administration is raiding our 'rainy day' supply of oil that should instead be reserved for national emergencies," Scalise said.
Bruce Alpert can be reached at balpert@timespicayune.com or 202.857.5131.