US considering regional product reserves: Bodman

 

The Bush administration is considering establishing regional reserves of gasoline, diesel fuel and jet fuel to help avert the type of shortages that occurred following hurricanes this year, Energy Secretary Samuel Bodman told reporters Oct 27. But he rejected the notion the White House was considering a tax on the oil industry to fund a federal program designed to help poor families pay winter heating bills.

Bodman said the administration was pondering setting up regional reserves capable of providing a five-day supply of gasoline, diesel fuel and jet fuel in case of shortages. "That matter is being discussed, but it is a very complicated matter," he said. Among the impediments, Bodman said, were setting up reserves that would accommodate the various blends of fuels used around the US, and making sure the stockpiles held fresh fuel, as oil products, unlike crude, degrade.

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