USD 92.2628

-0.33

EUR 99.7057

-0.56

Brent 86.99

+0.1

Natural gas 1.752

-0

549

Perdue asks Bush to use Oil Reserves

Perdue has sent a letter to President Bush requesting him to order the US Department of Energy to release a significant amount of crude oil from the Strategic Petroleum Reserve

Perdue asks Bush to use Oil Reserves

Gov. Sonny Perdue has sent a letter to President George W. Bush requesting him to order the U.S. Department of Energy to release a significant amount of crude oil from the Strategic Petroleum Reserve to help ease the pain of fuel shortages in the Southeast.

Perdue acknowledged it would take time for the crude to be processed by refineries and shipped to the metro Atlanta market.

The announcement comes as Perdue continues to face criticism from Democrats, who have called for him to return early from his weeklong trip to Barcelona, Madrid, Lisbon and Milan.

The U.S. Department of Energy has reported 57.4 percent of crude oil production capacity in the Gulf of Mexico is out. This is a slight improvement from Friday, when 59.3 percent of capacity was out.

The DOE has already released more than 4 million barrels of oil from the reserve. While it would take time for the crude to be processed by refineries and shipped to metro Atlanta market, release of the reserve would ensure fuel supplies continue to rise, the governor’s office said.

The complete text of Perdue’s letter to Bush follows:

September 29, 2008
The President
The White House
Washington, D.C. 20500
Dear Mr. President:

As you are personally aware, over the last month we have seen Hurricanes Gustav and Ike crash into the United States Gulf Coast. These natural disasters devastated coastal areas in both Texas and Louisiana, damaging the lives of citizens in both states. Under your direction, the Department of Homeland Security (DHS) and the Federal Emergency Management Agency (FEMA) have worked tirelessly to help residents pick up the pieces. Our thoughts and prayers remain with these citizens as they begin to rebuild their lives.

While the damage on the Coast was extensive, the ripple effect of the direct hit to the petroleum industry is still impacting the lives of citizens around the Southeast. In Georgia, which is almost completely reliant on fuel transported from refineries in the Gulf via pipeline, we are particularly impacted by outages in the fuel supply chain.

I have watched with interest as you and Congress continue to work around the clock to rescue the financial markets and slow the impact of banking failures on the U.S and global economies. As Congress moves to vote on the rescue plan, I would ask that you also focus your attention on the fuel shortage in the Southeast that is impacting state and local economies. Gas stations with no fuel in the ground coupled with long lines at stations with current supply have become commonplace in Metro Atlanta and other places around the state. It is obvious that we are facing a true gap in the supply chain and I ask that you consider releasing a significant amount of crude oil from the strategic petroleum reserve (the Reserve) to refineries in the Gulf to help bring the system back on line.

I would like to thank you for your move earlier this month to make crude oil supplies from the Reserve available to the market. Timely releases have lessened the impact of production losses in the Gulf. Now, as refinery capacity is returning to pre-hurricane levels, I believe a surge in crude from the Reserve would bridge the gap until full production resumes and lessen the impact of shortages on the daily lives of our citizens.

In Georgia, we have made decisive moves to curb demand and assist distributors as they work to increase supply. My administration worked closely with the Environmental Protection Agency (EPA) and Administrator Johnson to secure three different fuel standard waivers. Those waivers are allowing distributors to more easily import additional supplies. We have issued an executive order activating Georgia’s price gouging statues, and have eased requirements on the size and weight of fuel shipments and the number of operating hours for trucks bringing supply into the state. We have teamed up with the private sector to provide information to our citizens about the real-time locations of available fuel. I continue to encourage Georgians to conserve gas by teleworking, carpooling, using mass transit and other measures to help us through this short-term supply deficiency.

While these actions have helped, I am confident that a release from the Reserve is critical and will give our citizens confidence that additional supplies are forthcoming. Thank you for your time and attention on this important matter.

Respectfully,
Sonny Perdue
Cc: Secretary Samuel W. Bodman
Georgia Congressional Delegation

Author: Jo Amey


Follow us on Google News
Advertising at neftegaz.ru

Subscribe to our newsletter

of the best materials Neftegaz.RU

* Incorrect E-Mail Address

By clicking the "Subscribe" button I accept the "Agreement on the processing of personal data"


Advertising at neftegaz.ru