Protect Our Oil Supply

By David L. Goldwyn

Tuesday, September 25, 2001; Page A23

As the nation girds for war, the United States, its allies and our oil suppliers should take immediate steps to ensure that our energy security is ensured. Today our reserves of crude oil and such products as heating oil, jet fuel and gasoline are thin. OPEC's insistence for the past two years on restraining production to create artificially high prices has forced inventories to record lows. Any major interruption of supply, such as an attack on oil tankers on the high seas, on refineries at home or on the oil fields of our overseas suppliers, could drive prices through the roof, damage our economy and create hardship in the Northeast when the weather grows cold.

Five steps can help us protect ourselves. First, the U.S. government should fill the Strategic Petroleum Reserve. There is room for 155 million additional barrels of oil in the reserve.

Second, we should insist that our suppliers increase production now and make strategic sales of oil to the United States and our allies to increase our reserves. OPEC must agree to increase production now, restoring prices to traditional levels of $18 to $20 per barrel, so this new demand does not drive oil prices to even higher levels. Our suppliers should demonstrate their solidarity with us by ensuring that we can rebuild inventories without paying exorbitant prices for our reserves.

Third, the United States should construct additional product reserves for jet fuel, kerosene and gasoline (as we already have for heating oil) as a hedge against damage to U.S. or critical refineries.

Fourth, the United States should convene a special session of the International Energy Agency (IEA) to consider increasing Western reserves of oil. IEA members who are below quota should immediately comply with reserve requirements. The last thing the West can afford is a destructive competition for supply among its allies.

Finally, the secretary of state should convene the Overseas Security Assistance Council, a standing committee of U.S. companies operating overseas and U.S. security officials, to review procedures for protecting shipping on the high seas and overseas infrastructure, such as oil fields and refineries.

Oil is a primary reason why we have major military assets in the Middle East. Those military assets underlie radical Islamist hatred for the United States. Competition for oil supply has played a part in every major war we have fought in the last century. We need to think about securing oil supply now.

-- David L. Goldwyn was assistant secretary of energy for international affairs in the Clinton administration.