5 Million Barrels to Be Released From Strategic Oil Reserve

Wednesday, 12 Mar 2014 04:07 PM

 

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink

The Energy Department said Wednesday a decision to release five million barrels from its Strategic Petroleum Reserve was a long-planned test, amid speculation it related to the Ukraine crisis.

The department's decision for a "test drawdown" of the huge reserve is being done to test new regional pipeline systems in Texas and Louisiana, and has been under discussion "for many months," the department said.

Department spokesman Bill Gibbons said it is required to undertake the test by law, though the last time a test release took place was in 1990.

Since then, however, there have been other releases undertaken in reaction to events: in 2005, after Hurricane Katrina damaged parts of the crucial oil industry infrastructure along the Gulf of Mexico coastline, and in 2011 to counter global supply disruptions from the Libyan revolution.

The test is a response to the sharp rise in US domestic crude production since 2011, said Gibbons.

"Significant changes in the system have occurred — including pipeline expansion, construction of new infrastructure, reversed flow of existing pipelines and increased use of domestic crude oil terminals."

He said the test is to "assess the system's capabilities in the event of a disruption."

Some analysts had speculated that the government made the decision on the release in response to the risk that Russian oil and gas supplies to Europe could be cut off if the standoff over Ukraine intensifies.

US oil prices fell more than $2 a barrel to $97.99 on Wednesday, but mainly that came in response to a sharp rise in commercial stockpiles last week reported early in the day.

 

 

 

 

 

 

 

 

 

 

 

 

© AFP 2014

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Woman to Plead Guilty in Texas DA Murder Case

Sunday, 28 Dec 2014 18:00 PM

The estranged wife of a former justice of the peace in North Texas is expected to plead guilty to murder in connection w . . .

Great White Shark Bites Central California Surfer

Sunday, 28 Dec 2014 17:57 PM

A man in his 50s surfing on the Central California coast survived an attack Sunday by a juvenile great white shark, stat . . .

Ebola Chief Says CDC Lab Incident Poses No Risk to Public

Sunday, 28 Dec 2014 16:16 PM

The U.S. Ebola response coordinator called the mishandling of materials that led to a lab technician's possible exposure . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved