Advertising

The Seattle Times Company

NWjobs | NWautos | NWhomes | NWsource | Free Classifieds | seattletimes.com

The Seattle Times

Nation & World


Our network sites seattletimes.com | Advanced

Originally published Saturday, May 17, 2008 at 12:00 AM

E-mail article     Print view

Bush administration to halt storage of oil

The Bush administration, bowing to intense political pressure, said Friday it would cancel oil shipments into the Strategic Petroleum Reserve...

McClatchy Newspapers

WASHINGTON — The Bush administration, bowing to intense political pressure, said Friday it would cancel oil shipments into the Strategic Petroleum Reserve starting in July.

The move comes two days after Congress voted overwhelmingly to suspend filling the reserve. The surprise announcement came not from the White House but from the Department of Energy, on the same day that President Bush, traveling in Saudi Arabia, was rebuffed in his call for the kingdom to pump more petroleum in hopes of lowering today's high oil prices.

The Senate voted for the measure 97-1 Wednesday, and the House followed suit by a 385-25 margin — far more support than Congress would need to overturn a Bush veto.

The government has been filling the reserve, in underground salt caverns along the Texas and Louisiana coastlines, at a rate of about 70,000 barrels a day. The 727-million-barrel reserve at full capacity now has about 703 million barrels. The reserve was created in 1975 to provide insurance against supply disruptions, such as when the Organization of Petroleum Exporting Countries imposed an embargo on exports in 1973-74.

The Energy Information Administration, the statistical arm of the Energy Department, has said a halt to filling the reserve could reduce gasoline prices by 3 cents to 5 cents per gallon.

Megan Barnett, a spokeswoman for the Department of Energy, described the halt to filling the reserve as a 180-day pause that will be re-evaluated next year. Since taking office, Bush has increased the reserve from 540 million barrels to 703 million, enough to offset 58 days of lost oil imports should there be a supply disruption.

Copyright © 2008 The Seattle Times Company

More Nation & World headlines...

E-mail article Print view      Share:    Digg     Newsvine

advertising

A Bing deal for Microsoft, News Corp.?

Amazon, Wal-Mart escalate Web price war

6.8-magnitude quake rattles Tonga

8 charged in probe of terrorism-recruiting network in U.S.

Hate crimes against gays, religious groups up, FBI says

Advertising

Video

New Beginnings Christian Fellowship
Coming in this Sunday's Pacific Northwest Magazine: Pastor Braxton's mission is to preach a message that appeals to everyone.

PNW Magazine | Easy As Pie
Real Salt Lake wins MLS Cup
Raw Video | Real Salt Lake fans celebrate
Raw Video | Real Salt Lake receives the MLS Cup trophy
Raw Video | MLS Cup Opening Ceremony
Real Salt Lake fans enter Qwest Field
LA Galaxy's David Beckham
Real Salt Lake's Kyle Beckerman
MLS trophy arrives in Seattle

Marketplace

Open Houses

Find this weekend's open house listings.
Or search by location:

nwautos

Less is more: Group rides, good gas mileage have led to a scooter swarm in Seattlenew
Local riders say they've seen a surge in scooter interest in recent years, mostly from people wanting another commuting option. Seattle now ranks as o...
Post a comment

 
Most read
Most commented
Most e-mailed
 
 
Advertising