U.S. Might Tap Oil Reserves As Gasoline Price Surges
The U.S. government has said that it could tap its strategic oil reserves in order to safeguard economic growth as gasoline prices surge. While U.S. policy is to release oil reserves only in the event of a significant and immediate supply shortage, the Obama administration may feel compelled to try to tamp down prices.
There are reasons to believe the oil reserves could be used more liberally now. U.S. federal law allows the government to tap the oil reserves during a national energy supply shortage that raises petroleum prices and could damage the economy. The president has the authority to determine such an emergency.
"If necessary, the oil reserves could be mobilized to help mitigate the effect of a severe, sustained supply disruption," U.S. Treasury Secretary told the U.S. Senate Foreign Relations Committee.
