news.moneycentral.msn.com March 17, 2003 1:52:00 PM ET By Tom Doggett

WASHINGTON (Reuters) - As a possible war on Iraq looms, the U.S. Energy Department is ready to release oil from the nation's emergency stockpile if needed to counter any disruption in crude supplies, the Republican head of the House Energy and Commerce Committee said on Monday.

A war with Baghdad would shut down Iraq's 1.7 million barrels a day in oil exports. However, there are market fears that military action could also disrupt oil shipments from neighboring Saudi Arabia and Kuwait.

Rep. Billy Tauzin, the Louisiana Republican who chairs the House energy panel, said the Strategic Petroleum Reserve (SPR) was ready to be used if needed.

``Our review with the Department of Energy has convinced me that the SPR is fully operational and capable of releasing crude oil within the parameters required to prevent interruptions in crude oil deliveries to the market,'' Tauzin said in a letter to fellow lawmakers.

``The SPR has, for some time now, transitioned from the 'fill' mode to the 'flow' mode and is prepared to flow upon orders from the president,'' Tauzin said.

Oil markets have been skittish in recent weeks due to the possible war, supply disruptions in Venezuela and skyrocketing prices. Tauzin made his comments in a letter to U.S. lawmakers urging their support to expand the reserve to 1 billion barrels from its current capacity of 700 million barrels.

Congress created the stockpile in 1975 after the Arab oil embargo. It now holds 599 million barrels of crude in underground salt caverns at four sites in Texas and Louisiana.

An Energy Department spokeswoman said she had not seen the Tauzin letter and could not comment on it directly.

'NOTHING NEW'

However, she said there was ``nothing new'' with the administration's position on when and if it will use the emergency reserve.

She repeated comments by U.S. Energy Secretary Spencer Abraham that the administration ``was prepared'' to tap the reserve if there was a severe oil supply disruption.

But at this point we have not made a decision to move on the Strategic Petroleum Reserve,'' the spokeswoman said. We are monitoring the situation very carefully.''

The price of U.S. oil traded at the New York Mercantile Exchange fell on Monday on talk that the United States was ready to release oil from its emergency reserves if war broke out with Iraq.

At 12:40 EST, crude oil for delivery in April was down 83 cents at $34.55 a barrel.

If the administration decided to release oil from the SPR, the reserve's crude could be moved into the market between 10 and 15 days after a drawdown order from President Bush.

A White House spokesman would not say if Bush would include an announcement regarding the oil reserve in his televised address to the American people Monday at 8 p.m. EST.

www.nola.com The Associated Press 3/17/03 6:39 PM

Rep. Billy Tauzin, R-Chackbay, urged Congress to increase the capacity of the Strategic Petroleum Reserve to one billion barrels, and to fill the reserve to that capacity when cheaper oil is available.

He made the recommendation in a letter to his colleagues, a copy of which was released Monday.

Current capacity is about 600 million barrels in the reserve facilities on the Louisiana and Texas coasts. A larger reserve will make the country better able to deal with any interruptions in supply that might be caused by such occurrences as the looming war with Iraq, recent supply disruptions in Venezuela and skyrocketing oil prices, said Tauzin, chairman of the House Energy and Commerce Committee.

Law already authorizes and SPR capacity of a billion barrels. Tauzin said Congress should approve legislation allowing the Department of Energy to go ahead with steps to expand capacity, and to fill the reserve to capacity when oil prices are down. .

www.wbng.com Patrick Frank Mar 17, 2003, 22:51

Schumer stopped at the Kwik Fill on North Avenue in Owego to talk about rising gas prices.

He wants the Federal Trade Commission to investigate, and the federal government to release oil reserves to bring down prices.

Schumer says some businesses may be colluding on gas prices.

Senator Charles Schumer says, "It's very possible, as I said. Even though a few of the companies have no oil from Venezuela or the Middle East, their prices go up the same time the others go up."

Schumer also released a list of the gas stations with the lowest prices in Tioga County.

He encourages buyers to shop around before stopping to buy gas.

www.heraldtribune.com By The Associated Press

Rep. Billy Tauzin, R-Chackbay, urged Congress to increase the capacity of the Strategic Petroleum Reserve to one billion barrels, and to fill the reserve to that capacity when cheaper oil is available.

He made the recommendation in a letter to his colleagues, a copy of which was released Monday.

Current capacity is about 600 million barrels in the reserve facilities on the Louisiana and Texas coasts. A larger reserve will make the country better able to deal with any interruptions in supply that might be caused by such occurrences as the looming war with Iraq, recent supply disruptions in Venezuela and skyrocketing oil prices, said Tauzin, chairman of the House Energy and Commerce Committee.

Law already authorizes and SPR capacity of a billion barrels. Tauzin said Congress should approve legislation allowing the Department of Energy to go ahead with steps to expand capacity, and to fill the reserve to capacity when oil prices are down.

Last modified: March 17. 2003 6:15PM

www.smartmoney.com By Stephanie AuWerter March 17, 2003

ACROSS THE COUNTRY, Americans are suffering from gasoline sticker shock. Just one year ago, the average price for a gallon of regular unleaded gas was $1.25, according to the American Automobile Association (AAA). These days it's $1.72 (as of March 17, 2003; click here for the latest prices) — a whopping 37% increase. In the past month alone, the average price per gallon has jumped eight cents. That's pretty dramatic when you consider that last year prices hovered consistently within a four-cent range, says AAA spokesman Mantill Williams.

The culprit: a perfect storm of factors affecting the price of crude oil, which is refined to create gasoline. Inventories are low thanks in part to the cold winter temperatures in much of the country, most notably the Northeast. (Freezing temperatures led to a higher demand for heating oil, which also comes from crude oil.) On top of that, a major strike in Venezuela has crippled that country's exports.

Exacerbating all of this, of course, is fear over war with Iraq — a scenario that appears more likely with each passing day. Whether prices will continue to climb depends on what sort of war it turns out to be. A short, successful war should cause prices to fall. But if it's a prolonged campaign — or if Saddam Hussein ignites his oil fields — you can expect prices to go even higher.

Higher gas prices mean tighter budgets for many drivers. Fortunately, there are lots of ways to save.

Shop Smart It pretty much goes without saying that you need to be a savvy consumer these days. Prices can vary — sometimes significantly — from station to station, so pay attention to which one offers the best prices, says Bill Bush, spokesman for the American Petroleum Institute.

Some Web sites can help you follow prices at local stations. At GasPriceWatch.com, more than 76,000 gas-price "spotters" track local prices and regularly update the site's data. Another site worth checking out is GasBuddy.com, a portal site that connects approximately 170 regional gas-tracking Web sites. AAA's Web site also provides regional gas prices.

And keep your eyes peeled. While rumors of price gouging are typically inaccurate, if you notice that a gas station has rapidly and dramatically raised its prices to a suspiciously high price (say by more than 50 cents overnight), report it to AAA or the Better Business Bureau, says AAA's Williams.

Feed Your Car Right Now's a good time to dig out your owner's manual to double check which type of gas your car really needs. Unless you have a luxury car or sports car, it's likely that your automobile requires plain ol' regular unleaded. So don't pay extra for a gas with a higher octane level, says Williams. Many ordinary drivers believe that a higher octane gas will make their engines perform better — but it almost never does. Higher octane levels merely prevent what's known as "engine knock," a condition that typically affects only high-performance cars.

Time for a Tune Up Regular tune-ups can make for greater fuel efficiency. Be sure to check the air filter, transmission fluid, spark plugs and oxygen sensor — all of which can have an effect on fuel efficiency, says Jim Kliesch, research assistant at the American Council for an Energy-Efficient Economy (ACEEE) . A faulty oxygen sensor (which is part of the car's emission system), for example, can cut fuel economy by as much as 40%.

Also, make sure the tires are inflated properly. Underinflated tires can reduce fuel economy by 2% per pound per square inch below the recommended level, according to AAA. (They're also dangerous for driving.)

Lighten the Load If you have a lot of junk sitting in your truck, dump it. The more your car is weighed down, the less fuel efficient it will be, says Kliesch. Granted, you'd need to haul around a payload full of anvils for this to make a huge difference in your fuel efficiency, since every 100 pounds reduces your fuel efficiency by just 1% to 2%. But these days every little bit counts.

Also, when transporting something, keep in mind that if you can fit the item in the car rather than tying it to the roof or putting it in a rooftop carrier, you'll be more fuel efficient.

Drive Nice Aggressive driving can be costly — even if you don't get slapped with a speeding ticket. Rapid starts and harsh braking require more fuel than does smooth driving. If possible, use cruise control on the highway, says Cathy Milbourn, spokeswoman for the Environmental Protection Agency (EPA). Maintaining a constant speed saves gas.

Serious speeding also reduces fuel economy. Traveling at 75 miles per hour compared with 55 miles per hour can reduce fuel economy by as much as 26%, says ACEEE's Kliesch.

Consolidate Trips Running several errands during one outing can save gas. "Several short trips taken from a cold start use twice as much fuel as a multipurpose trip covering the same distance when the engine is warm and more efficient," says Milbourn.

Buy a Fuel-Efficient Car If you're in the market for a new car, pay close attention to its fuel efficiency. This can save you hundreds or even thousands of dollars over several years. Vehicle selection "is the most important fuel-economy decision you'll make," says Milbourn.

For a list of the most fuel-efficient cars, visit Fueleconomy.gov, a Web site created by the EPA and the Department of Energy. Another site worth visiting is Greenercars.com, which measures cars based a "green score" that factors in fuel consumption and air pollution, including unhealthy tailpipe emissions (which contribute to global warming).

Finally, if you're truly willing to go green, consider purchasing a "hybrid" car (one that combines an electric motor and a gasoline-powered engine). Doing so can be good for the environment as well as your wallet. Not only do these cars get excellent mileage, but you could also be eligible for a $2,000 federal-tax deduction. For more, click here.