Pointing to oil production slowdowns in the Gulf of Mexico after Hurricane Harvey, Energy Secretary Rick Perry on Thursday said he’ll authorize the release of 500,000 barrels from the nation’s Strategic Petroleum Reserve.
The move, which will be the first time the nation has tapped the reserve since 2012, comes amid fears that gas prices will spike as a result of production slowdowns in the Gulf, and because much of the region’s refining capacity remains inoperable.
The fuel will travel via pipeline to a refinery in Louisiana that remains in operation.
“This decision will authorize 200,000 barrels of sweet crude and 300,000 barrels of sour crude to be drawn down from [the reserve] and delivered via pipeline to the Phillips 66 refinery” in Louisiana, said Energy Department spokeswoman Jessica Szymanski.
“The department will continue to provide assistance as deemed necessary, and will continue to review incoming requests for SPR crude oil. Should the secretary decide to approve additional requests for an emergency exchange of crude oil from he SPR, the public will be notified.”
The reserve currently holds about 687 million barrels of petroleum.
In its budget proposal earlier this year, the administration proposed selling off about half of that stockpile.
Roughly 20 percent of the nation’s offshore supply has been shut in due to Harvey, in addition to equally dramatic reductions in on-shore production and refining.
Meanwhile, the Environmental Protection Agency has responded to the brewing fuel crisis by granting emergency fuel waivers to 38 states and Washington, D.C., the agency said in a statement Thursday.
The waiver temporarily suspends Clean Air Act requirements for reformulated and low volatility gasoline. It also allows E15, gas containing 15 percent ethanol, to be sold. That fuel typically isn’t available during summer months due to ozone concerns.
• Ben Wolfgang can be reached at bwolfgang@washingtontimes.com.
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