US energy head Chu says Libya unrest not enough to tap oil reserve yet

Washington (Platts)--1Mar2011/424 pm EST/2124 GMT

US Energy Secretary Steven Chu on Tuesday reiterated President Barack Obama's stance that the US has no plans to tap the Strategic Petroleum Reserve despite unrest in Libya and the Middle East causing oil prices to rise.

"The strategic reserve is there for a serious disruption of supply," Chu said on the sidelines of the US Department of Energy's Energy Innovation Summit. "As the president has pointed out, the events in Libya are a very small disruption, and so far it's manageable."

Chu said the administration continues to monitor oil prices and will act if necessary. He noted that the reserve has only been tapped twice before.

"It's an emergency fund," he said. "We want to keep it that way."

--Herman Wang, herman_wang@platts.com

To subscribe or visit go to:  http://www.platts.com