House panel’s Republicans seek information about DOE’s SPR management

US House Energy and Commerce Committee Republican leaders requested a meeting with US Sec. of Energy Ernest J. Moniz and other appropriate officials concerning management of the US Strategic Petroleum Reserve as the summer driving season approaches.

US Energy Information Administration data show the US has stockpiled more US-produced crude oil than at any time since the Great Depression from the combination of hydraulic fracturing and horizontal drilling in tight oil formations, Committee Chairman Fred Upton (Mich.) and five other members of the majority said in a May 12 letter to Moniz.

DOE’s Mar. 12 announcement that it would draw down and sell 5 million bbl of SPR crude over 30 days marked the first time this authority under the 1975 Energy Policy and Conservation Act has been used, the lawmakers noted. The department’s May 2 announcement that it would create the first federal regional gasoline reserves (OGJ Online, May 5, 2014) also was a departure from current SPR use, they added.

They said DOE’s fiscal 2015 budget request of $205 million for the reserve addresses “several major, yet deferred, maintenance activities.”

These included oil degasification operations; restoration of SPR’s maximum drawdown capability (which had declined from a designed 4.4 million b/d designed rate to 4.25 million b/d at the time the proposed budget was released); and “efforts to reverse diminished cavern capacity due to cavern creep, a geological force that causes caverns to close overtime, thereby decreasing space to store oil,” the letter said.

They asked that DOE officials from its Fossil Energy Office, SPR Project Management Office, and management and operations contractor staff meet with the House committee’s staff by May 27 to discuss the test sale, creation of the Northeastern regional gasoline reserves, projected life cycle of SPR sites and infrastructure, and DOE’s assessment of the reserve’s current fuel mix and whether existing drawdown guidelines are appropriate.

Oversight and Investigations Subcommittee Chairman Tim Murphy (Pa.) and Vice-Chairman Michael C. Burgess (Tex.), Energy and Power Subcommittee Chairman Ed Whitfield (Ky.), Committee Chairman Emeritus Joe Barton (Tex.), and Committee Vice-Chairman Marsha Blackburn (Tenn.) signed the letter in addition to Upton.

Contact Nick Snow at nicks@pennwell.com.

Related Articles

Congressional Republicans see undue restrictions in 2017-22 OCS draft

04/23/2015 Congressional Republicans—led by Senate Energy and Natural Resources Committee Chair Lisa Murkowski (Alas.) and House Natural Resources Committee C...

CERAWeek: Evolutions of Pemex, YPF running parallel

04/23/2015 Chief executives of Mexico’s Petroleos Mexicanos (Pemex) and Argentina’s YPF SA are both seeing energy reforms within their respective countries, a...

Diligence essential to avoid future offshore mistakes, panel told

04/23/2015 The offshore oil and gas industry—as well as the federal agencies that regulate it—must remain diligent to avoid the mistakes that led up to the Ma...

Gazprom: EC’s antitrust allegations ‘unsubstantiated’

04/23/2015 OAO Gazprom says antitrust allegations by the European Commission regarding territorial restrictions and an unfair pricing policy are “unsubstantia...

Upper East Coast US Senate, House members oppose Atlantic leasing

04/23/2015 Observing both Earth Day and the fifth anniversary of the Macondo deepwater well accident and crude oil spill, US Senate and House members—largely ...

Petrobras reports $2.1 billion write-down after anticorruption probe

04/23/2015 Petroleo Brasileiro SA (Petrobras) reported a $2.1-billion write-down from improper payments identified in the Brazilian Federal Police’s “Operatio...

MARKET WATCH: NYMEX crude oil price drops on inventory build

04/23/2015 Crude oil prices for June delivery dropped modestly on the New York market on Apr. 22 to remain above $56/bbl for June delivery following another r...

CERAWeek: Company, industry have transformed since Macondo, BP CEO says

04/22/2015 This week marked the 5-year anniversary of the Deepwater Horizon explosion in the deepwater Gulf of Mexico that took 11 lives and resulted in the c...

Noble Energy settles air pollution charges from D-J basin operations

04/22/2015 Noble Energy Inc. agreed to settle federal and state air pollution charges stemming from its Denver-Julesburg basin oil and gas exploration and pro...
White Papers

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...
Available Webcasts


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

When Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

register:WEBCAST



On Demand

Prevention, Detection and Mitigation of pipeline leaks in the modern world

Thu, Apr 30, 2015

Preventing, detecting and mitigating leaks or commodity releases from pipelines are a top priority for all pipeline companies. This presentation will look at various aspects related to preventing, detecting and mitigating pipeline commodity releases from a generic and conceptual point of view, while at the same time look at the variety of offerings available from Schneider Electric to meet some of the requirements associated with pipeline integrity management. 

register:WEBCAST


Global LNG: Adjusting to New Realities

Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


US Midstream at a Crossroads

Fri, Mar 6, 2015

Oil & Gas Journal’s Mar. 6, 2015, webcast will focus on US midstream companies at an inflection point in their development in response to more than 6 years shale oil and gas production growth. Major infrastructure—gas plants, gathering systems, and takeaway pipelines—have been built. Major fractionation hubs have expanded. Given the radically changed pricing environment since mid-2014, where do processors go from here? What is the fate of large projects caught in mid-development? How to producers and processors cooperate to ensure a sustainable and profitable future? This event will serve to set the discussion table for the annual GPA Convention in San Antonio, Apr. 13-16, 2015.

This event is sponsored by Leidos Engineering.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected