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TAPPING OIL RESERVES CONFIRMS HIGH GAS PRICES DUE TO SUPPLY
Kingston decries short-sighted approach, calls for increased production of American energy
Washington, Jun 23, 2011 -
The United States tapping into its emergency oil reserves as part of an international effort to increase global oil supplies confirms what Congressman Jack Kingston (R-GA) has been saying for quite some time: high gas prices are a result of supply and demand.
In their opposition to Republican efforts to increase domestic energy production, Democrats in Congress have tried to place blame elsewhere as recently as this week. Kingston welcomes the change of tune from the Obama Administration but decried the move as short-sighted.
“This confirms what we already knew: increasing the oil supply will bring down the cost at the pump,” said Kingston. “What I cannot believe is that the Obama Administration would tap an emergency reserve while at the same time it blocks American energy production at every turn. If we want to bring down prices, let’s quit playing games and start developing our energy resources right here at home. A lasting solution will require an all-of-the-above approach and safely developing our resources here and now is the first step.”
The United States will lead the international effort supplying half of the total 60 million barrels being released. The supply will come from the Strategic Petroleum Reserve which totals 727 million barrels and was established after the 1973-1974 Arab oil embargo to hedge against disruptions in the oil supply.
This represents just the second time such a coordinated effort has been undertaken to address global oil supplies. The first was in 1991 at the outbreak of the first Persian Gulf War. The last and only other time the reserve was accessed was in 2005 after Hurricane Katrina interrupted oil supply from the Gulf Coast.
In Congress, Kingston has fought to provide relief from high gas prices and help the economy create jobs. In April, he supported legislation that would prevent the Environmental Protection Agency from imposing a backdoor national energy tax that would drive up gasoline prices and destroy jobs.
Last month, the Kingston votes for three separate bills to roll back the Obama Administration’s de facto moratorium on offshore American energy production. Not only would those bill increase the supply of American-made energy, it is estimated they would help create 1.2 million jobs according to Louisiana State University Economist Dr. Joseph Mason.
“It’s time for the Obama Administration to get out of the way so we can let our economy move forward,” Kingston said.