17-03-04
US gasoline supplies could be in short supply this summer, and pump prices may skyrocket even more because of a new law that would ban oil tankers from entering US ports if the ships fail to meet security standards. Beginning on July 1, the United Nations is requiring all ships and ports around the world to comply with tough international anti-terror procedures that were adopted after the Sept. 11 attacks on the United States.
The new standards will kick in at the height of the busy US summer driving
season, when refineries are producing as much gasoline as possible. US retail
gasoline prices are already at near-record highs and expected to continue
rising.
The United States depends on oil imports to meet almost 60 % of its daily
petroleum demand. But the US Coast Guard said it does not plan any special
treatment for oil and gas tankers and will ban ships from entering ports if
necessary.
"We aren't taking any different stance on the oil and gas
(shipments)," said agency spokeswoman Jolie Shifflet. "Owners and
operators of oil and gas tankers should expect to encounter the same kind of
security inspections as all the other international vessels that are coming into
the US."
While turning back a ship is the most severe response, the Coast Guard could
also take less drastic action against violators, such as boarding and inspecting
tankers. The US market needs every barrel of oil and gasoline it can get as the
Energy Department forecast that retail motor fuel prices this summer will reach
a record high.
"The prospects for oil prices diminishing significantly prior to the
driving season have weakened and there is a high likelihood of additional
gasoline price increases," the department's Energy Information
Administration said in its latest forecast.
The new security guidelines cover all goods, commodities, and merchandise
transported aboard ships. But US motorists could feel an immediate impact at the
pump if tankers carrying gasoline from ports that are not in compliance are
banned from docking in American waters.
Shifflet would not say if the Coast Guard is worried that some major oil
producing nations might not meet the security standards, which are being
overseen by the London-based International Maritime Organization (IMO).
OPEC members that are reportedly behind schedule in meeting the July 1
deadline include Saudi Arabia, Nigeria, Indonesia, Kuwait, and the United Arab
Emirates.
The new standards require ships and ports to develop plans for assessing threats
that could cause significant lost of life or property damage and adopt security
measures to mitigate those risks.
Source: Environmental News Network