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LIVE

Sunday, 07 September, 2008, 04:10 GMT | more prices >>

Pelosi calls to suspend SPR deliveries

By Upstream staff

House Speaker Nancy Pelosi, the top Democrat in the US House of Representatives, called on the White House to temporarily stop sending crude oil into the nation's emergency stockpile.

Pelosi told reporters that she was calling on President George W. Bush to work with Democrats to find a way to "temporarily suspend" oil deliveries to the Strategic Petroleum Reserve.

The White House immediately rejected the plea. "We don't believe the fill rates have a meaningful impact on oil supplies," White House spokesman Scott Stanzel said.

"We continue to fill the reserve to provide an added layer of protection to the American people in cases of severe supply disruption."

Pelosi said suspending deliveries would save drivers 5 to 24 cents per gallon for gasoline at the pump.

As US benchmark crude oil prices hit a record near $120 a barrel this week, the Bush administration insisted that reserve-filling efforts account for less than one-tenth of 1% of daily supply, and have no meaningful effect on prices.

The nearly 701 million barrels of crude oil stocked away in underground salt caverns in Louisiana and Texas are meant as a supply buffer in case of major supply disruptions like the 2005 hurricanes that plowed into the Gulf Coast oil patch.

The SPR was created by Congress in 1975 after the Arab oil embargo during the Yom Kippur War in 1973.

Current shipments come to about 70,000 barrels per day, while the US uses about 21 million barrels of oil a day.

Democratic Senator Byron Dorgan of North Dakota said he would seek to attach an amendment to an upcoming supplemental appropriations bill that would forbid the government from sending oil to the SPR if oil prices are above $75 a barrel.

"I believe I have the votes," Dorgan told reporters. "I think I'm going to be able to get this done."