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Air Transport Association Calls for a Staggered Release of the Strategic Petroleum Reserve

Written by thomas · Filed Under Aeronautics News 

July 24, 2008

thomas

WASHINGTON, July 23 /PRNewswire-USNewswire/ — The Air Transport
Association of America (ATA), the industry trade organization for the U.S.
airlines, today testified before the House Select Committee on Energy
Independence and Global Warming on the critical importance of tapping the
Strategic Petroleum Reserve (SPR) to help bring immediate relief to
consumers and businesses suffering from high fuel prices.

“ATA is calling for a release of 10 percent of the Strategic Petroleum
Reserve, beginning immediately. History has shown that a temporary increase
in supply will help lower prices,” said ATA President and CEO James C. May.
“Oil prices are hurting our nation’s families and economy, and the
industries that drive that economy.”

Due to limited refining capacity and surging global demand, jet fuel is
costing as much as $30 per barrel more than gasoline and, through July 15,
is averaging 71 percent more than in 2007. ATA projects that U.S. airlines
will spend more than $61 billion on fuel in 2008, $20 billion more than in
2007, which is more than the combined fuel bill in the first four years of
this decade.

May noted that many factors have led to triple-digit oil prices. ATA
and its member airlines have long supported both short- and long-term
solutions with three essential elements: increasing domestic supply,
reining in unchecked speculation in the energy futures markets and a
release from the SPR.

“The entire U.S. economy is being severely impacted by sky-high energy
prices. A release of additional barrels into the market and swift
legislation to curb oil speculation will bring down oil prices now,” said
May. “A balanced, comprehensive national energy policy is the only kind
that will bring the quick, meaningful and lasting relief this nation
needs.”

May provided an outline for the SPR release, including:

— Follow an unannounced release schedule

— Release light, sweet crude oil first

— Restore U.S. commercial inventories, at a minimum, to previous
year’s levels

— Dedicate revenues from the sale of SPR barrels to the development of
alternative energy sources

— For Congress to set up a framework or trigger for continued use of
the SPR when conditions warrant

ATA airline members and their affiliates transport more than 90 percent
of all U.S. airline passenger and cargo traffic. For additional information
about the industry, visit http://www.airlines.org. To tell your member of Congress
that you demand action now to stop excessive oil speculation, visit
http://www.StopOilSpeculationNow.com.

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