Politics of Oil: Will High Prices Spur Lawmakers to Act?

Share
Copy

What is likely to touch political nerves in the shorter term is the discussion of tapping into the SPR, 727 million barrels of oil that are kept in underground salt domes in case of an emergency or supply disruption.

Will High Prices at the Pump Translate Into Legislation?

Some members of Congress are urging Obama to tap into the reserve to help alleviate price pressure on consumers.

"It belongs to the American people," Rep. Peter Welch, D-Vt., said on Fox News last week. "We are in a fragile economic recovery now. These high oil prices are hurting home owners, hurting consumers and hurting our small businesses. It is the type of thing that you can do tactically, really."

The White House has indicated it's considering that option.

"The issue here is disruption. Is there a major disruption in the flow of oil? That's obviously a factor," White House Press Secretary Jay Carney said Monday. "But I think the point that we want to make is that we're very cognizant of the fact that Americans are experiencing a sharp rise in prices at the gas pump."

Amid Congressional pressure, President Bush approved the Department of Energy's request to halt shipments to the reserve in 2008, the last time the country saw a sudden spike in oil prices, but he didn't tap into the reserve itself.

This kind of pressure from Congress on presidents isn't new. But some say that while it may help psychologically and alleviate prices in the short term, it's not a long term fix.

The main idea behind keeping crude oil in the SPR, which was created in the 1970s, is that it can be tapped in the case of a direct disruption to the U.S. oil supply, not to bring down prices.

Libyan oil exports don't play a significant role in the U.S. economy, and with concern about the uprising spreading across the Middle East -- including Saudi Arabia, one of the world's leading suppliers -- analysts say Obama shouldn't cave in to the pressure.

"It's supposed to be tapped for a major disruption, but what's major is in the eyes of the beholder," Spence said. "The president's job is to think more broadly than immediate political concerns. They have to think about the possibility that there will actually be a shutoff of Middle Eastern oil, for example, something that would hit the major transport routes."

House Speaker John Boehner's office says the GOP leader supports approaching other methods before tapping into the reserves.

"Instead of opening up SPR, which was created for national security emergencies, we need an 'all of the above' American energy strategy that would cut energy costs, reduce our dependence on foreign oil, and create jobs here in the United States," Boehner spokesman Michael Steel told ABC News.

Page
  • 1
  • |
  • 2
Join the Discussion
You are using an outdated version of Internet Explorer. Please click here to upgrade your browser in order to comment.
blog comments powered by Disqus
 
You Might Also Like...