US monitoring Mideast turmoil's impact on oil prices: Chu

Washington (Platts)--28Jan2011/309 pm EST/2009 GMT

US Energy Secretary Steven Chu Friday acknowledged that political unrest in Egypt and Tunisia, which border several Middle East oil producing states that the US imports from, could cause oil prices to rise.

"Any disruption in the Middle East means at least a partial disruption in the oil we import," he said on a conference call with reporters. "More importantly, any serious disruption in the Middle East means that even if we don't get some of our oil, it's a world market, so that may have some harm on the price."

But those political developments underscore the need for the US to diversify its energy sources and reduce dependence on imported oil, Chu said, outlining the US' three-pronged approach to that end: boosting energy efficiency, developing advanced biofuels, and electrifying the country's vehicles.

"We watch these things very closely," he said, referring to the turmoil in Egypt and Tunisia. "But the best way that America can protect itself from these incidents is to diversify our supply."

--Herman Wang, herman_wang@platts.com

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