{
  "id": "RL32358",
  "type": "CRS Report",
  "typeId": "REPORTS",
  "number": "RL32358",
  "active": false,
  "source": "EveryCRSReport.com, University of North Texas Libraries Government Documents Department",
  "versions": [
    {
      "source": "EveryCRSReport.com",
      "id": 101048,
      "date": "2004-09-27",
      "retrieved": "2016-04-07T20:08:27.411200",
      "title": "The Strategic Petroleum Reserve: Possible Effects on Gasoline Prices of Selected Fill Policies",
      "summary": "The Strategic Petroleum Reserve (SPR), authorized by the Energy Policy and Conservation Act\n( P.L.\n94-163 ), was originally intended to provide a domestic stock of crude oil to be used in emergency\nsituations when the supply of crude oil to the United States is disrupted. In November 2001,\nPresident Bush ordered that the SPR be filled to its current capacity with royalty-in-kind (RIK) oil,\nthe government's share of oil produced from federal leases. In the face of high prices for crude oil\nand gasoline, the policy has been challenged as a contributing cause of higher prices. Some\npolicymakers have been urging suspension of RIK deliveries to the reserve, arguing that it would\nhelp to lower the cost of gasoline. RIK deliveries are currently scheduled through April 2005,\nnotwithstanding loans of some crude to refiners adversely affected by Hurricane Ivan in September\n2004. \n  This report examines the factors that are currently influencing crude oil and gasoline prices, and\nreviews the extent to which prices might be correlated with SPR fill policy. If RIK oil were released\nto the market, gasoline prices might be affected. Since crude oil is a raw material in the production\nof gasoline, a reduction in the price of oil might pass through to the price of gasoline. To the extent\nthat the capacity to refine additional barrels of crude directed to the market exists, and the diverted\nRIK oil is not offset by reduced crude oil imports, consumers might benefit. However, the amount\nof RIK oil, relative to the total market when it is operating normally, is small, and when coupled with\nother market dynamics, the effect of changes in SPR fill policy on crude and product prices could\nbe only minimal. In instances where there is an actual interruption in deliveries -- as experienced by\nsome refineries in the Gulf Coast in the wake of Hurricane Ivan -- the effect of SPR use may be\ndifferent. \n  Conditions in the gasoline market, including strong demand, high refinery capacity utilization\nrates, fragmented regional gasoline specifications, and scarce, high-cost imports, as well as the need\nto build inventories, point to the continuation of high gasoline prices even if oil prices decline\nsomewhat. Although the price of oil influences, and is a component of, the price of gasoline, a\ncomplex interaction of many factors determines price.\n  A drawdown of the SPR -- in addition to a deferral of RIK fill -- is a further policy option, but\nis not analyzed in depth here. Benefits might vary, depending upon the ability of refineries to absorb\nadditional crude, and the amount of additional crude made available. However, if one considers that\nrefining capacity is already strained and unlikely to benefit from extra crude supply, any softening\nin oil prices from a drawdown would be unlikely to be passed along in full to consumers. This report\nwill be updated as events warrant.",
      "type": "CRS Report",
      "typeId": "REPORTS",
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      "topics": []
    },
    {
      "source": "University of North Texas Libraries Government Documents Department",
      "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc821216/",
      "id": "RL32358_2004Apr19",
      "date": "2004-04-19",
      "retrieved": "2016-03-19T13:57:26",
      "title": "The Strategic Petroleum Reserve: Possible Effects on Gasoline Prices of Selected Fill Policies",
      "summary": null,
      "type": "CRS Report",
      "typeId": "REPORT",
      "active": false,
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      "topics": []
    }
  ],
  "topics": [
    "Energy Policy"
  ]
}