The Nation's Preparedness for Dealing With Oil Import Disruptions

GAO discussed the Nation's preparedness for dealing with oil import disruptions. The Department of Energy (DOE) has recently outlined new approaches to energy contingency planning, and GAO reviewed the proposed policies and programs. The main DOE approach to contingency planning involves the Strategic Petroleum Reserve and the activation of the Executive Manpower Reserves, a group of private industry experts to be called in during energy emergencies. The rest of the DOE emergency preparedness effort consists of data gathering, studies, and defining further options. In particular, DOE will be studying: (1) methods of encouraging the buildup of private oil inventories; (2) what types of public information programs would be most useful; (3) the economic effects of supply disruptions and economic impact mitigation options; (4) ways to encourage State and local governments and private industry to develop their own contingency plans; (5) International Energy Agency supply rights and fair sharing; and (6) regional capabilities for dealing with shortages.