Jun 23, 2011 IPAA Responds to DOE Decision to Release Oil from the Strategic Petroleum Reserve
WASHINGTON, DC – The U.S. Department of Energy (DOE) announced today that it will be releasing 30 million barrels of oil from the Strategic Petroleum Reserve (SPR) in response to growing unrest in the Middle East. This decision would provide the United States with less than two days worth of oil based upon current consumption rates.
In response to DOE’s decision to release oil from the SPR, the Independent Petroleum Association of America (IPAA) President and CEO Barry Russell issued the following statement:
“The Strategic Petroleum Reserve (SPR) is America’s first line of defense against a major disruption in domestic petroleum supplies. Releasing oil from the SPR is a short term fix at best. It not only reduces our capacity to protect ourselves in case of a true emergency in the future, but also increases America’s reliance on the politically volatile countries that currently provide most of our oil.
“America’s independent producers are keenly aware of the impact that high oil and gas prices have on the American people and our nation’s economy. If the Administration was truly interested in reducing our dependence on foreign oil and reducing consumers’ pain at the pump, it would promote the production of oil and natural gas in the United States by streamlining the permitting process and allowing America’s energy producers to get back to work in the Gulf, in Alaska and throughout the nation – adding more oil to the marketplace, increasing domestic supplies and strengthening the nation’s energy security.
“Today’s action is not a solution, yet another decision that will only prolong the nation’s vulnerability to swings in oil prices. Drilling for more oil at home will not only increase American oil supply, but will also create jobs and increase government revenues through taxes and royalties. Releasing oil from our strategic reserves cannot accomplish these other important goals.”
NOTE: Due to a moratorium imposed by the White House on oil and gas production in the Gulf of Mexico last year, the Energy Information Administration projects that the United States will produce 200,000 fewer barrels of oil per day in 2011 and 2012.