Watching Government: Safety net

A little-known provision in a recent law reauthorizing the Strategic Petroleum Reserve could impact the US oil industry the next time oil prices plunge.The Energy Policy and Conservation Act (EPCA) reauthorization, enacted Nov. 9, contains a measure that allows the federal government to buy marginal well oil production at $15/bbl through 2003.The goal of the legislation was to assure that marginal wells are not shut in during periods of extraordinarily low oil prices.Under the provision, domestic prices would have to average less than $15/bbl for a year, and the $15 would be adjusted for inflation.The Department of Energy would store the oil in the SPR, presumably after swapping it for gr...

Why Register?

Non-subscribers can only view whitepapers by providing name, home and email address, phone number and other information and comment on/rate articles.

Why Subscribe?

Oil & Gas Journal subscribers with login credentials can access these premium features of OGJ Online:

  • Current Issue – an html version of the current week's issue of Oil & Gas Journal.
  • Past Issues – An Electronic OGJ Archive. A keyword-searchable archive of all issues of Oil & Gas Journal dating back to 1990; also searchable by issue date.
  • Market Journal – a weekly round-up of the oil and gas markets, with observations from leading analysts.
  • Editor's Perspective – a short article of insight and opinion by the Editor of Oil & Gas Journal.
  • OGJ Industry Stats – quick access to current industry statistics from Oil & Gas Journal.
  • OGJ Survey Downloads - quick access to exclusive reports from Oil & Gas Journal.


Subscriber Help or Subscribe

Oil & Gas Journal Subscribers: Have your subscription number (from the mailing label on the cover of your Oil & Gas Journal) and e-mail address ready to set up your online account through Customer Service Assistant.

If you're not an Oil & Gas Journal subscriber, start a subscription and gain access to the subscriber areas of OGJ Online now.

Stay Connected