Releasing oil from the Strategic Petroleum Reserves combined with a temporary suspension of filling the SPR will help stabilize petroleum markets, reduce global demand for crude oil, and ultimately lower fuel prices, a top trucking executive testified before the United States Congress recently.
Testifying on behalf of the American Trucking Associations before the House Select Committee on Energy Independence and Global Warming, Swift Transportation Vice President Dave Berry said releasing oil from the Strategic Petroleum Reserve was a key component of a comprehensive strategy to restore “rational behavior” to the petroleum markets.
“We know that the SPR does not contain enough oil to permanently alter the supply of crude oil in the marketplace,” Berry said. “But we believe strategic releases from the SPR could temporarily increase the supply of crude oil and hopefully help restore rational behavior to the petroleum markets. This type of government intervention could drive speculators out of the market and help ensure that petroleum prices are once again driven by supply and demand.
Berry, whose Phoenix AZ-based truckload company operates more than 18,000 trucks, also asked the committee to review the rules governing management of the SPR. He said because the current rules are subject to an international agreement they limit the ability of the United States to address market irregularities with the reserves.