By November 21, 2018 0 Comments Read More →

Louisiana Sen. Bill Cassidy proposes renting out space for crude oil in Louisiana caverns

Sen. Bill Cassidy is proposing the nation rent out storage space in the Strategic Petroleum Reserve, which includes facilities in Louisiana.

“If the tanks are empty, let’s put them to use. … The Strategic Petroleum Reserve is crucial for our national security and this will help keep it in good working order and save taxpayers money at the same time,” the Louisiana Republican says.

The reserve was first discussed in 1944 and created in 1975 following an Organization of Petroleum Exporting Countries embargo of the preceding two years. The SPR can hold 727 million gallons of crude oil that can be dispensed in case of an energy crisis.

Recent legislation allows the federal government to sell off oil from the reserves for profit, and if that leaves extra space in the storage facilities the property should be leased to private companies and foreign nations, Cassidy’s office has argued.

In the past three years, Congress has authorized the sale of up to 149 million barrels through 2025 to fund a variety of programs, including new healthcare programs co-sponsored by Cassidy.

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Posted in: Daily News

About the Author:

The Louisiana Oil & Gas Association (known before 2006 as LIOGA) was organized in 1992 to represent the Independent and service sectors of the oil and gas industry in Louisiana; this representation includes exploration, production and oilfield services. Our primary goal is to provide our industry with a working environment that will enhance the industry. LOGA services its membership by creating incentives for Louisiana’s oil & gas industry, warding off tax increases, changing existing burdensome regulations, and educating the public and government of the importance of the oil and gas industry in the state of Louisiana.

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