Sen. Klobuchar Calls on Administration to Release 70 Million Barrels of Oil from Strategic Petroleum Reserve to Stabilize Gas Prices
Press Release
Sen. Klobuchar Calls on Administration to Release 70 Million Barrels of Oil from Strategic Petroleum Reserve to Stabilize Gas Prices
Action would provide consumers relief at the pump and keep reserve at 90% full
Today U.S. Senator Amy Klobuchar called on the Administration to release 70 million barrels of oil from the Strategic Petroleum Reserve (SPR) to help stabilize price spikes at the pump for consumers caused by disrupted oil production due to Hurricane Ike this weekend. The move would provide consumers relief at the pump and maintain the SPR at 90% capacity.
"While I applaud today's announcement that 300,000 barrels will be released from the SPR, it is barely a start," said Klobuchar "The Strategic Petroleum Reserve was created as a rainy day reserve so that consumers don't get soaked when there are unexpected market disruptions. By safely releasing this oil, we can provide consumers the relief they need until production gets back online in the aftermath of the hurricane."
After Hurricane Katrina, President Bush announced that he would be releasing 30 million barrels of oil. One day later, the price of oil decreased by 5.2 percent. Two weeks later, when the first oil was delivered for refining, the price had dropped 9.5 percent. The decline in prices was even more dramatic after President George H. W. Bush announced that he would release 34 million barrels of oil on the eve of the first Gulf War. The next day, oil prices dropped 33.4 percent.
This is the most recent push by Klobuchar to push the Administration to use the SPR as one of several tools to control skyrocketing energy prices squeezing middle class pocketbooks. Earlier this year, in March and July, Klobuchar joined Senate colleagues in urging the Bush Administration to release oil from the SPR to stabilize gas price spikes.
"This is a tool that can be used now, it is proven to work, and it still keeps our rainy day reserve at 90% to respond to other potential disruptions," Klobuchar added.
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