News / Economy

US to Release Oil from Emergency Reserves

Gas Station manager Joseph Sublett changes a sign reflecting reflecting lower prices in Little Rock, Arkansas, June 22, 2011(file photo)
Gas Station manager Joseph Sublett changes a sign reflecting reflecting lower prices in Little Rock, Arkansas, June 22, 2011(file photo)
Kent Klein

The Obama administration announced Thursday that it is releasing 30 million barrels of oil from the United States’ emergency reserve to offset production lost because of the fighting in Libya.  The U.S. oil will be about half of a 60 million barrel international release.

The United States and the other member nations of the International Energy Agency, or IEA, are trying to head off a resurgence in petroleum prices.

White House officials say more than 140 million barrels of oil production have been lost since the fighting in Libya started earlier this year.

Although oil prices have been falling in recent weeks, White House Press Secretary Jay Carney told reporters that the release of the reserve oil has been discussed for some time.  He said the disruption in oil supplies is as real today as it was several weeks ago.

“This is a move by the IEA, which is a 28-member organization, in a coordinated way to address a sustained, significant disruption in our oil supply, caused by the events in Libya," said Carney.

The president’s spokesman said the administration does not predict prices.  But President Barack Obama has been under political pressure because of higher gasoline prices and their effect on economic growth.

Republican John Boehner, the Speaker of the House of Representatives, accused the president of using a national security instrument to address his domestic political problems.

In a written statement Thursday, Boehner instead called for a national energy policy which involves increased oil production.

Carney said the release of U.S. strategic oil reserves during the next 30 days is intended to increase market supplies as demand increases when Americans take their summer vacations.

“What we are addressing is an impact caused by a supply disruption," he said. "At this time, it is necessary to do it because we are about to enter into the season when demand is at its highest.”

Although the United States and the other 27 IEA countries reached the decision together, Democratic Representative Edward Markey said the release will protect the U.S. economy and put other oil producers on notice.

“We are an oil-consuming nation," said Markey. "But with today’s announcement, we are sending a message to OPEC [Organization of Petroleum Exporting Countries] and the oil-producing countries that we are not going to have our economy held hostage any longer.”

The U.S. Strategic Petroleum Reserve was established in the 1970s in response to the OPEC oil embargo.  The reserve holds a record 727 million barrels of oil stored underground near the Gulf of Mexico coast.

Officials say President Obama is open to releasing more oil from U.S. reserves, but that he has not decided to do so.  

You May Like

Westgate Mall Attack Survivors Confront Painful Memories

On anniversary of terror attack, survivors discuss how they have coped with trauma they experienced that day More

Iraqi Kurdish Leader: Protect Syrian City

Islamic State fighters are besieging Kobani, also known as Ayn al-Arab, after seizing at least 21 surrounding villages in a major assault against city on Syria's northern border with Turkey More

Video Whaling Summit Votes to Uphold Ban on Japan Whale Hunt

Conservationists hail ruling as a victory, but Tokyo says it will submit revised plans for a whale hunt in 2015 More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Russian Economy Reeling After New Western Sanctionsi
X
September 18, 2014 2:28 AM
A new wave of Western sanctions is hitting Russia’s economy hard. State-owned energy firms continue to bleed profits and Russia’s national currency plunged to a new low this week after the U.S. and the European Union announced new sanctions to punish Russia's aggressive stance in eastern Ukraine. But as Mil Arcega reports, the sanctions could also prove costly for European and American companies.
Video

Video Russian Economy Reeling After New Western Sanctions

A new wave of Western sanctions is hitting Russia’s economy hard. State-owned energy firms continue to bleed profits and Russia’s national currency plunged to a new low this week after the U.S. and the European Union announced new sanctions to punish Russia's aggressive stance in eastern Ukraine. But as Mil Arcega reports, the sanctions could also prove costly for European and American companies.
Video

Video Belgian Researchers Discover Way to Block Cancer Metastasis

Cancer remains one of the deadliest diseases, despite many new methods to combat it. Modern medicine has treatments to prevent the growth of primary tumor cells. But most cancer deaths are caused by metastasis, the stage when primary tumor cells change and move to other parts of the body. A team of Belgian scientists says it has found a way to prevent that process. Zlatica Hoke has more.
Video

Video Mogadishu's Flood of Foreign Workers Leaves Somalis Out of Work

Unemployment and conflict has forced many young Somalians out of the country in search of a better life. But a newfound stability in the once-lawless nation has created hope — and jobs — which, some say, are too often being filled by foreigners. Abdulaziz Billow reports from Mogadishu.
Video

Video A Dinosaur Fit for Land and Water

Residents and tourists in Washington D.C. can now examine a life-size replica of an unusual dinosaur that lived almost a hundred million years ago in northern Africa. Scientists say studying the behemoth named Spinosaurus helps them better understand how some prehistoric animals adapted to life on land and in water. The Spinosaurus replica is on display at the National Geographic museum. VOA’s George Putic has more.
Video

Video Iraqi Kurdistan Church Helps Christian Children Cope find shelter in churches in the Kurdish capital, Irbil

In the past six weeks, tens of thousands of Iraqi Christians have been forced to flee their homes by Islamic State militants and find shelter in churches in the Kurdish capital, Irbil. Despite U.S. airstrikes in the region, the prospect of people returning home is still very low and concerns are starting to grow over the impact this is having on the displaced youth. Sebastian Meyer reports from Irbil on how one church is coping.
Video

Video NASA Picks Boeing, SpaceX to Carry Astronauts Into Space

The U.S. space agency, NASA, has chosen Boeing and SpaceX companies to build the next generation of spacecraft that will carry U.S. astronauts to the International Space Station by the year 2017. The deal with private industry enables NASA to end its dependence on Russia to send space crews into low Earth orbit and back. Zlatica Hoke has more.
Video

Video Future of Ukrainian Former President's Estate Uncertain

More than six months after Ukraine's former President Viktor Yanukovych fled revolution to Russia, authorities have yet to gain control of his palatial estate. Protesters occupy the grounds and opened it to tourists but they are also refusing to turn it over to the state. VOA's Daniel Schearf reports from Mezhigirya, just north of Kyiv.
Video

Video China Muslims Work to Change Perceptions After Knife Attacks

China says its has sentenced three men to death and one woman to life in prison for a deadly knife attack in March that left more than 30 dead and 140 injured. Beijing says Muslim militants from China's restive western region of Xinjiang carried out the attacks. Now, more than six months after the incident, residents in the city are still coping with the aftermath. VOA's Bill Ide has more from Kunming.


Carnage and mayhem are part of daily life in northern Nigeria, the result of a terror campaign by the Islamist group Boko Haram. Fears are growing that Nigeria’s government may not know how to counter it, and may be making things worse. More

AppleAndroid

World Currencies

EUR
USD
0.7768
JPY
USD
108.84
GBP
USD
0.6124
CAD
USD
1.0999
INR
USD
61.042

Rates may not be current.