Full Title: Energy Policy: Conceptual Framework and Continuing Issues
Author(s): Robert Bamberger
Publisher(s): Congressional Research Service
Publication Date: May 1, 2006
Full Text: Download Resource
Description (excerpt):
In the spring of 2006, crude oil prices were exceeding $70/barrel (bbl) in response to tight markets and uncertainty over the security of world oil supply. On August8,2005,the 109th Congress—during its first session—enacted the Energy Policy Act of 2005 (EPACT, P.L. 109-58). However, a number of developments have placed additional pressure on world markets. Successive hurricanes, Katrina and Rita, in late August and late September 2005, brought about the shutdown of more than 5 million barrels per day of refining capacity in Texas and Louisiana and initially shut down the 25% of U.S. crude oil production and 20% of U.S. natural gas production that comes from the Outer Continental Shelf in the Gulf of Mexico. In May 2006, 300,000 barrels per day of U.S. production capacity had not been restored. World and domestic demand for oil has remained strong, taking up most of the world’s spare production capacity. The phaseout of the gasoline additive methyl tertiary butyl ether (MTBE) and a renewable fuels mandate in EPACT have placed additional pressure on gasoline price and deliverability in the United States.