Schumer again calls for tapping of oil reserve - Calls on Bush to open federal stores to combat rising prices
www.rochesterdandc.com By Joseph Spector Democrat and Chronicle
(January 28, 2003) — Sen. Charles Schumer on Monday renewed calls for the Bush administration to consider using the federal government’s oil reserves to help Americans cope with the rising cost of gasoline and home heating oil.
Rochester already has seen a 34 percent increase in gasoline prices and a 23 percent spike in home heating oil costs from last year, Schumer said.
Releasing millions of gallons from the federal government’s Strategic Petroleum Reserve -- or even just threatening to do it -- would spur global oil producers to sell more on the open market and stop the increase in oil and gasoline prices, Schumer said as he stood in 2-degree weather near gas pumps at a Brighton gas station.
“Even if the president were to tell the OPEC nations that he was thinking of using it, the price would come down immediately,” he said.
The reserve, a cache of some 600 million barrels of oil, was created in 1975 to help America respond to oil emergencies. Schumer said former President Clinton checked prices in 2000 by releasing 30 million barrels.
The average gas price in Rochester was $1.18 per gallon last year. On Monday, the average price was $1.58 per gallon. The average cost of residential heating oil was $1.44 per gallon last week, a 33-cent increase from last year, according to the Department of Energy.
With the oil strike in Venezuela and the uncertainty of a war with Iraq, Schumer said now is the time to look to the reserves.
But others disagreed, saying the reserves should be used only in emergencies.
“It’s something we should use in light of a national fuel emergency,” said Gary Tschaepe, regional public affairs manager for the AAA Western and Central New York.
“It’s not the right time for us to release the fuel reserves based on an economic decision.”
White House spokesman Ken Lisaius said the administration is constantly monitoring changes in the world oil market and the amount of reserves. He said the country’s reliance on foreign oil is the reason Bush wants Congress to pass an energy bill that would further explore domestic energy resources.
Moreover, Bush last week released $200 million -- including $36 million for New York -- to a federal home heating aid program to help millions of people with low incomes pay their heating bills, Lisaius said.
In Rochester, the American Red Cross/RG&E Heating Fund is still accepting applications. For those who qualify, the program provides heating assistance to low-income families who need oil, propane, kerosene or help with paying a utility bill when a disconnect notice has been issued.
E-mail address: jspector@DemocratandChronicle.com