Using SPR would hurt US in war on terror

Using SPR would hurt US in war on terror: Bush

New York (Platts)--19May2004


US President George W. Bush, in his administration's strongest comments to
date on use of the Strategic Petroleum Reserve, said Wednesday he will not
"play politics" by releasing crude from the emergency stockpile in order to
cool rising gasoline prices. Bush also said removing crude from the SPR would
weaken the US in its war on terror. "We will not play politics with the
Strategic Petroleum Reserve. That petroleum reserve is in place in case of
major disruptions of energy supply to the United States," Bush told reporters
in brief remarks televised from the White House. "The idea of emptying the
Strategic Petroleum Reserve would put America in a dangerous position in the
war on terror...And playing politics with the Strategic Petroleum Reserve
would do just that." Some Democrats in Congress have pressed Bush to release
crude from the SPR, saying the additional oil on the domestic market would
help ease gasoline prices that last week averaged more than $2/gal.

One proposal, pushed by Sen. Charles Schumer (Democrat-New York), calls for
the Bush administration to release 30-mil bbl from the SPR over the span of 30
days, with an option for an additional 30-mil bbl. But the administration has
been adamant in its refusal to tap the stockpile, insisting it should only be
used in times of emergencies and that market forces should be allowed to set
the price. High crude and gasoline prices have become a campaign issue, with
presumptive Democratic nominee John Kerry taking Bush to task in recent days
for his refusal to use the SPR. Bush on Wednesday reiterated he remains
concerned about high energy prices. "If people had acted on my energy bill
when I submitted it three years ago, we would be in a much better situation
today," he said. Energy legislation has languished in the Congress, as members
have failed to reach agreement on key provisions of the package, most notably
its cost.

This story was first published in Platts real-time news and market reporting
service Platts Global Alert
(http://www.platts.com/Oil/Real-Time%20Information/Global%20Alert/ ).

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