Two U.S. Senators have called on President
Busy to deploy the nation's Strategic Petroleum
Reserve.
In a letter posted Tuesday, Sens. Olympia J.
Snowe, R-Maine, and Chuck Schumer, D-New York,
called on Bush to act immediately to help
relieve soaring gas prices across the country.
"Americans suffering from skyrocketing prices
at the gas pump deserve relief," Snowe said in a
prepared statement. "With oil prices sure to
rise even further in the aftermath of Hurricane
Katrina, now is the time to utilize our
strategic reserves to soften the blow."
Hurricane Katrina disrupted on oil and gas
supplies, sending prices to record highs of $70
per barrel in U.S. trading.
In central Maine on Tuesday, gasoline was
selling for a low of $2.52 per gallon in
Lewiston for unleaded regular, while highs of
$2.68 were seen in Turner and Auburn.
Schumer called on Bush to deploy the
petroleum reserve to avoid "economic disaster".
"If there was ever a time for the Strategic
Petroleum Reserve to be tapped, it would be
now," he said.
Tapping the reserve would assure a continued
flow of crude to refineries that are operating,
and would help to dampen market speculation that
has been driving up both crude and wholesale
prices for refined products.
Actually getting the reserve's oil, however,
could prove difficult. The same flooding and
power outages affecting refineries along the
Gulf Coast could delay shipments of crude. The
reserve's oil is held in salt caves near the
Louisiana coast.
Katrina caused a shutdown of Gulf Coast oil
production, beginning over the weekend as the
hurricane prompted an evacuation of oil
production platforms. The offshore platforms
produce an estimated 1 million barrels of crude
oil daily.
The Coast Guard said Tuesday that seven such
platforms were adrift in the Gulf of Mexico
after the storm.
Louisiana's Offshore Oil Port, the nation's
largest oil importing terminal, has also been
closed by the storm.
Besides the lost production of crude,
flooding caused by Katrina shut down scores of
refineries from Louisiana to Alabama. Those
refineries produce about 10 percent of the
gasoline consumed daily nationwide.