Markey calls on Bush to free up oil reserves
No such plans, White House says
WASHINGTON - Representative Edward J. Markey, a Massachusetts Democrat, called yesterday on President Bush to release both home heating oil and crude oil from two reserves to ease the cost to consumers, but the White House said it has no plans to do so.
The Northeast Home Heating Oil Reserve, which has 1.9 million barrels of home heating oil, was created in 2000 as an emergency buffer to supplement commercial fuel supplies in case of a severe disruption in supply. The Strategic Petroleum Reserve, established after the 1973-74 oil embargo, holds nearly 700 million barrels of crude oil.
Scott Stanzel, White House deputy press secretary, said that the administration believes the best way to curb oil prices is to enact its legislative proposal to reduce dependence on foreign oil by expanding the use of alternative fuels, "not raise taxes or play politics with the reserve."
"The Strategic Petroleum Reserve is for emergencies and disruptions of our supply," Stanzel said. "The one time there was a release from the reserve in the previous administration, it had negligible impact on the price of oil."
According to the Department of Energy, the United States has only twice released oil from the reserve in response to an emergency: in 1991, under the first President Bush, to assure supplies when war broke out in the Persian Gulf; and in 2005, under the current president, after Hurricane Katrina devastated oil production facilities in the Gulf of Mexico.
Stanzel was referring to President Clinton's decision in September 2000 to direct the sale of 30 million barrels of crude oil from the reserve because of low inventories in the Northeast; after the release, the administration replaced the 30 million barrels with purchases from oil companies.
Releasing oil from the two reserves, Markey said, "would pierce the bubble of the high prices . . . and put the brakes on speculators for the time being. Otherwise there is a real fear the price could go over $100 a barrel. The president has to do something."
In the Northeast, about 50 percent of homes burn heating oil, accounting for 6.3 million households, or 78 percent of those in the nation that use oil. Massachusetts officials reported this week that the cost of heating oil is $2.91 a gallon, up 24 percent from a year ago. In 2000, the cost for a gallon of heating oil was $1.46, roughly half the price of today's oil. 