Thursday, September 1, 2005
Yesterday, President George W. Bush authorized the release of oil from the Strategic Petroleum Reserve due to Hurricane Katrina’s effects on oil refineries in the Gulf Coast.
The decision was made late Tuesday and announcement was made Wednesday.
The Strategic Petroleum Reserve consists of 700 million barrels of oil located in salt caverns along the Texas and Louisiana coast. The Strategic Petroleum Reserve is meant to act as a cushion for the oil market during disruptions of energy.
Energy production was interuppted by Katrina as more than 735 oil and natural gas rigs had to be evacuated. This shut down 95 percent of crude production and 88 percent of natural gas output in the Gulf of Mexico.