Does SPR Spell Relief for the Domestic Oil Industry?
by David R. Wunsch Overproduction by many of the major oil-producing countries, compounded with a decrease in worldwide demand, has created an oversupply of petroleum in global markets. One consequence is that nearly all U.S. oil storage facilities are at or near capacity. Even as OPEC and other oil-producing countries instigate additional production cuts, the volume buffer resulting from the oversupply will sustain artificially depressed prices for the foreseeable future. To address this issue, the Clinton administration proposed on Feb. 11 to refill the nations Strategic Petroleum Reserve (SPR) with crude oil from outer continental shelf (OCS) leases located along the Gulf of Mexico coast, replacing the volume drawn down during the Gulf War in the early 1990s and from government sales that occurred in FY 1996. This proposal is an effort to remove at least nominal amounts of surplus crude oil volumes from the market supply and to help ensure national security by increasing the federal
Related Questions
- Can there be interim relief to the domestic industry pending levy of final anti dumping duty? In how many days such interim relief can be expected?
- What is the relief/remedy to the Domestic Industry under the Anti Dumping mechanism. Is it always in the form of Anti-dumping duty?
- Whats included in the mining, oil & gas extraction industry?
