Senate Democrats Criticize Petroleum Reserve Policy

Study Says SPR Refill Caused Additional Spike in Already High Fuel Prices

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img src="/sites/default/files/images/articles/printeditiontag_new.gif" width=120 align=right>A new Department of Energy policy of buying crude oil to fill the Strategic Petroleum Reserve without regard to already high prices caused further spikes in fuel prices, said a study by Senate Democrats.

The March 5 report, by the Democratic staff of the Senate Permanent Subcommittee on Investigations, said DOE officials ignored career-staff warnings that filling the SPR when prices were high and inventories were tight would drive prices higher.

It said the strategy tightened supplies and raised the cost of various oil products — such as diesel fuel and gasoline used by the trucking industry as well as other consumers, jet fuel used in both cargo and passenger travel, and heating oil that competes with diesel at refineries.

DOE responded that the report misunderstood the purpose of the SPR and overestimated the market effect of SPR purchases.

For the full story, see the March 10 edition of Transport Topics. Subscribe today.