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House panel endorses another SPR sale

June 23, 1997

A U.S. House appropriations subcommittee has voted to sell $200 million worth of crude oil from the Strategic Petroleum Reserve in fiscal 1998. Purpose of the sale is to finance SPR maintenance and operations, continuing a trend of recent years (OGJ, Jan. 13, 1997, p. 20). Oil industry groups oppose the action. Introducing more oil into the market via such a sale is likely to depress oil prices. Also, Rep. Tom Bliley (R-Va.) and Rep. Dan Schaefer (R-Colo.), chairmen of the House commerce panels

A U.S. House appropriations subcommittee has voted to sell $200 million worth of crude oil from the Strategic Petroleum Reserve in fiscal 1998.

Purpose of the sale is to finance SPR maintenance and operations, continuing a trend of recent years (OGJ, Jan. 13, 1997, p. 20).

Oil industry groups oppose the action. Introducing more oil into the market via such a sale is likely to depress oil prices.

Also, Rep. Tom Bliley (R-Va.) and Rep. Dan Schaefer (R-Colo.), chairmen of the House commerce panels that oversee U.S. energy issues, strongly protested the action.

Meanwhile, the House commerce committee and the Senate energy committee both approved bills to allow the Energy Department to lease unused space in the SPR to other nations.

That could generate earnings of as much as $13 million during 1998-2002.