DOMENICI STATEMENT ON HURRICANE KATRINA AND UPCOMING HEARING ON ESCALATING GASOLINE PRICES

August 31, 2005
01:12 PM

Washington, D.C. – Senate Energy and Natural Resources Committee Chairman Pete V. Domenici issued the following statement regarding the impact of Hurricane Katrina on the nation’s oil supply and upcoming hearings to examine the issue.

“First, let me express my deepest sympathy for the victims of Hurricane Katrina, and pledge my full support for the brave individuals who are currently assisting victims.

“Today, President Bush has approved the release of oil from the Strategic Petroleum Reserve (SPRO) to help refiners affected by the hurricane.  I believe that the SPRO exists precisely for situations such as this one, and I applaud this move.

“Even before Hurricane Katrina, my committee had scheduled a major hearing focusing on the world’s supply and demand for oil in order to ascertain the impact of increased gas prices on the American economy.

 “As a result of the hurricane, the situation has become even more acute and a number of critical issues have emerged.  Our hearing will discuss whether we have reached our limits of refining capacity, and whether this nation has concentrated our refining and distribution system too much in the Gulf region.

“This hearing will examine the need to diversify our capacity so that we are better able to both refine and produce oil in the United States.  It may lead to discussions about alternate sources of supply, and the need to ensure that our capacity is spread out over a larger geographic area so that a catastrophic event such as this one will not have such a negative impact.”

The full committee hearing is scheduled for 2:30 p.m., Tuesday, Sept. 6, in a room to  be announced.  Witnesses will be announced Sept. 2 and will subsequently be posted on the committee website at http://energy.senate.gov/public//.