(The Imam drains the SPR as he attempts to gain political favor...)
Obama releasing 30M barrels from US oil reserves
Obama releasing 30M barrels from US oil reserve to offset Mideast turmoil, high gas prices
On Thursday June 23, 2011, 10:10 am
WASHINGTON (AP) -- Wary of a new surge in gas
prices, the Obama administration has decided to release 30 million
barrels of oil from the country's emergency reserve as part of a broader
international response to lost oil supplies caused by turmoil in the
Middle East and North Africa, particularly Libya.
The release from
the U.S. Strategic Petroleum Reserve will amount to half of a 60
million barrel international infusion of oil planned for the world
market over the next month.
"We are taking this action in response
to the ongoing loss of crude oil due to supply disruptions in Libya and
other countries and their impact on the global economic recovery,"
Energy Secretary Steven Chu said Thursday.
The administration said
the uprising in Libya has resulted in a loss of about 1.5 million
barrels of oil a day. The release comes as the United States approaches a
period of high energy use in July and August.
High oil prices and
the resulting increase in the cost of gasoline have contributed to an
economic slowdown and have put increased political pressure on President
The government is wary of dipping into the
petroleum reserve, releasing oil from it only in extreme cases, such as
hurricanes, that affect oil supplies. The reserves -- 727 million
barrels stored in salt caverns along the Texas and Louisiana coasts --
were created in response to the Arab oil embargo in the 1970s and last
tapped in 2008 after hurricanes Gustav and Ike hit.
dropped Thursday after Federal Reserve Chairman Ben Bernanke warned that
the U.S. economy was recovering more slowly than expected and after the
International Energy Agency announced the release of 60 million barrels
Retail gasoline prices in the U.S. dropped for the 20th consecutive day to $3.61 per gallon.