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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: SilentZ who wrote (294952)	7/15/2006 3:19:55 PM
From: tejek	Respond to of 1572631

From what I can tell, the Reserve has been drawn down 6 times. Once under the first Bush; 4 times under Clinton and once under this Bush. The Strategic Petroleum Reserve The Energy Policy and Conservation Act authorizes drawdown of the Reserve upon a finding by the President that there is a “severe energy supply interruption.” This is deemed by the statute to exist if three conditions are joined: If “(a) anemergency situation exists and there is a significant reduction in supply which is of significant scope and duration; (b) a severe increase in the price of petroleumproducts has resulted from such emergency situation; and (c) such price increase is likely to cause a major adverse impact on the national economy.” Congress enacted additional drawdown authority in 1990 (Energy Policy and Conservation Act Amendments of 1990, P.L. 101-383) after the Exxon Valdez oilspill, which interrupted the shipment of Alaskan oil, triggering spot shortages and price increases. The intention was to provide for an SPR draw down under a less rigorous finding than that mandated by EPCA. This section, 42 U.S.C. § 6241(h),allows the President to use the SPR for a short period without having to declare theexistence of a “severe energy supply interruption” or the need to meet obligations ofthe United States under the international energy program.Under this provision, a drawdown may be initiated in the event of acircumstance that “constitutes, or is likely to become, a domestic or internationalenergy supply shortage of significant scope or duration” and where “action taken ...would assist directly and significantly in preventing or reducing the adverse impactof such shortage.” This authorityallows for a limited use of the SPR. No more than30 million barrels may be sold over a maximum period of 60 days, and this limitedauthority may not be exercised at all if the level of the SPR is below 500 millionbarrels. This was the authoritybehind the Bush Administration’s offer of 30 millionbarrels of SPR oil on September 2, 2005, which was part of the coordinateddrawdown called for by the International Energy Agency. The same authority mayhave been the model for a swap ordered byPresident Clinton on September 22, 2000(see below). As noted above, agreement on extension of the EPCA authorities wasnot reached until the final days of the 106thCongress (P.L. 106-469). During theroughly seven months that no formal authorities were in place, the Administration’sposition was that the existence of an annual appropriation for the SPR conveys theintention of Congress intention to maintain the SPR irrespective of whether thestatutes have lapsed. The existence of legislative proposals in both the House andSenate to fund the SPR in FY2001 and to reauthorize the program were alsointerpreted by DOE counsel as further evidence of congressional intent toward theSPR. As noted previously, the Energy Policy Act of 2005 made the SPR authoritiespermanent. 72.14.203.104

To: SilentZ who wrote (294952)	7/15/2006 3:22:04 PM
From: tejek	Respond to of 1572631

But you said the reserves would be empty today, and that's not true. Of course, its not true. Besides, the Reserve has been refilled after every draw down. Unfortunately, its never been filled to capacity. At present levels there is enough oil in the Reserve to last for roughly 37 days. From what I can tell, the Reserve has been drawn down 6 times. Once under the first Bush; 4 times under Clinton and once under this Bush. The Strategic Petroleum Reserve The Energy Policy and Conservation Act authorizes drawdown of the Reserve upon a finding by the President that there is a “severe energy supply interruption.” This is deemed by the statute to exist if three conditions are joined: If “(a) anemergency situation exists and there is a significant reduction in supply which is of significant scope and duration; (b) a severe increase in the price of petroleumproducts has resulted from such emergency situation; and (c) such price increase is likely to cause a major adverse impact on the national economy.” Congress enacted additional drawdown authority in 1990 (Energy Policy and Conservation Act Amendments of 1990, P.L. 101-383) after the Exxon Valdez oilspill, which interrupted the shipment of Alaskan oil, triggering spot shortages and price increases. The intention was to provide for an SPR draw down under a less rigorous finding than that mandated by EPCA. This section, 42 U.S.C. § 6241(h),allows the President to use the SPR for a short period without having to declare theexistence of a “severe energy supply interruption” or the need to meet obligations ofthe United States under the international energy program.Under this provision, a drawdown may be initiated in the event of acircumstance that “constitutes, or is likely to become, a domestic or internationalenergy supply shortage of significant scope or duration” and where “action taken ...would assist directly and significantly in preventing or reducing the adverse impactof such shortage.” This authorityallows for a limited use of the SPR. No more than30 million barrels may be sold over a maximum period of 60 days, and this limitedauthority may not be exercised at all if the level of the SPR is below 500 millionbarrels. This was the authoritybehind the Bush Administration’s offer of 30 millionbarrels of SPR oil on September 2, 2005, which was part of the coordinateddrawdown called for by the International Energy Agency. The same authority mayhave been the model for a swap ordered byPresident Clinton on September 22, 2000(see below). As noted above, agreement on extension of the EPCA authorities wasnot reached until the final days of the 106thCongress (P.L. 106-469). During theroughly seven months that no formal authorities were in place, the Administration’sposition was that the existence of an annual appropriation for the SPR conveys theintention of Congress intention to maintain the SPR irrespective of whether thestatutes have lapsed. The existence of legislative proposals in both the House andSenate to fund the SPR in FY2001 and to reauthorize the program were alsointerpreted by DOE counsel as further evidence of congressional intent toward theSPR. As noted previously, the Energy Policy Act of 2005 made the SPR authoritiespermanent. 72.14.203.104