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| White House to Release Oil From Reserves |
| Wednesday, August 31, 2005 |
Energy Secretary Samuel W. Bodman said Wednesday the Bush administration has decided to release oil from federal petroleum reserves to help refiners affected by Hurricane Katrina.
The move, which was expected later in the day, is designed to give refineries a temporary supply of crude oil to take the place of interrupted shipments from tankers or offshore oil platforms affected by the storm.
The U.S. Minerals Management Service said Tuesday that 95 percent of the Gulf of Mexico's oil output was out of service. Oil prices surged back above $70 in European markets on Wednesday but slipped quickly to $69.56 after disclosure of the decision involving the release of supplies from the Strategic Petroleum Reserve. Eight refineries were shut down due to Katrina _ half of them producing gasoline.
The government's emergency petroleum stockpile _ nearly 700 million barrels of oil stored in underground salt caverns along the Texas and Louisiana Gulf Coast _ was established to cushion oil markets during energy disruptions. |
posted by Jay Are @ 1:09:00 PM   |
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