| WASHINGTON,
D.C. – During a hearing yesterday in the House Government Reform Committee,
Energy Secretary Bill Richardson endorsed a legislative proposal that will
be introduced by U.S. Representative Jan Schakowsky (D-IL). Schakowsky’s
proposal could help prevent future gasoline and heating oil shortages and
price run-ups by creating an early warning system to require the Department
of Energy (DOE) to keep close tabs on inventories and to report to Congress
specific remedies to prevent supply shortages and price spikes.
“I
am very pleased that Secretary Richardson has endorsed establishing an
early warning system and look forward to working with the Energy Department
on this issue. It makes sense to have in place an early warning system,
otherwise, consumers could face even higher price spikes in the future,”
Schakowsky said.
During
the hearing, Secretary Richardson said, “We support it. I think it
makes sense… We need to have better tracking of domestic and international
petroleum inventories.” He also added that such a system would be “valuable
for the country and the international community.”
The
proposal being drafted by Schakowsky would require DOE to monitor crude
oil, distillate and gasoline inventories and refinery utilization levels
on national and regional levels. DOE would have to notify Congress
whenever inventories have fallen to levels that mean supplies may be inadequate
to meet needs, creating disruptions and driving up prices. DOE would
also have to recommend to Congress what steps could be taken to alleviate
inventory problems. Those steps could include releasing of oil from
the Strategic Petroleum Reserve oil, requiring increased refinery output,
and purchasing of gasoline or heating oil products from abroad. |
