Criticism of Plan to Export SPR Oil Mounts

The Energy Department is coming under criticism for its failure to insist that oil released from the Strategic Oil Reserve be earmarked to assure sufficient growth in heating oil inventories.

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Meanwhile, a group of House members has written a letter asking President Clinton to ban heating oil exports.

“If the stated purpose was to assure heating oil supplies in the Northeast,” said deputy staff director Brian Malnak, “you would think the contracts would include some language” requiring that a portion of the oil be put to that use.

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However, Malnak said a specific written question by a bidder — “Can we export the oil?” — was answered: “Apply for a permit.”

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