"We are disappointed with the outcome of the House vote,” said ATA President and CEO James C. May of the legislature’s rejection of releasing oil from the Strategic Petroleum Reserve (SPR). “A staggered release of oil from the Strategic Petroleum Reserve would have both short- and long-term impact on reducing the price of oil. We sincerely hope that Congress will put aside its partisan differences and agree on a comprehensive package before recessing for the summer."
Legislators failed to agree on whether or not to allow more offshore, drilling likely dooming any prospects for legislation this year, barring what staffers called a miracle.
May added that the package should include a three-pronged approach: stop excessive speculation in the oil commodities markets, remain focused on environmentally sound supply-side solutions, and immediately begin releasing 10 percent of the SPR.
Earlier in the week, the organization called for the immediate release of 10 percent of the SPR, saying history has shown that a temporary increase in supply will help lower prices. Owing to limited refining capacity and surging global demand, said ATA, jet fuel is costing as much as $30 per barrel more than gasoline and, through July 15, is averaging 71 percent more than in 2007. ATA projects that U.S. airlines will spend more than $61 billion on fuel in 2008, $20 billion more than in 2007, which is more than the combined fuel bill in the first four years of this decade.
May provided an outline for the SPR release, including:
• Follow an unannounced release schedule
• Release light, sweet crude oil first
• Restore U.S. commercial inventories, at a minimum, to previous year’s levels
• Dedicate revenues from the sale of SPR barrels to the development of alternative energy sources
• For Congress to set up a framework or trigger for continued use of the SPR when conditions warrant