The federal government will allow the release of some of the nation's strategic oil reserve to ease pressures caused by Hurricane Katrina, Secretary of Energy Samuel Bodman told CNBC Wednesday morning. He said details would be forthcoming this afternoon.
The Energy Department says the reserve sits at record highs right now as ordered by President Bush after September 11, 2001. Here is the Energy Department's opus site on the SPR.
The department's Web site reports that it would be possible to draw down about four million barrels of oil a day and it would take a couple of weeks for that oil to hit the U.S. market. But there is a real question about whether it is the oil supply or refining capacity that is most at issue right now.
The DOE reports that the SPR has been drawn down in these past instances:
- 1985: Test sale -- 1.1 million barrels
- 1990/91: Desert Shield/Storm sale -- 21 million barrels
(4 million in August 1990 test sale; 17 million in January 1991 presidentially-ordered drawdown) - 1996-97: Total non-emergency sales -- 28 million barrels
There have been some "exchanges," as well, to relieve temporary problems. The DOE reports:
- September/November 2004: Exchanged 5.4 million barrels of sweet crude due to disruptions in the Gulf of Mexico caused by Hurricane Ivan.
- April/May 1996: Exchanged 900,000 barrels of SPR crude with ARCO to resolve company's pipeline blockage problem.
- August 1998: Exchanged 11 million barrels of lower quality Maya crude in SPR with PEMEX for 8.5 million of higher quality crude (more suitable for U.S. refineries).
- June 2000: Exchanged 500,000 barrels each with CITGO and Conoco, due to blockage of the ship channel that allowed incoming crude oil shipments to those refineries. Action taken in order to avert temporary shutdown of both refineries.
- July/August 2000: Exchanged 2.8 million barrels of crude oil for first-year tank storage and stocks for 2 million barrel Northeast Home Heating Oil Reserve.
- September/October 2000: Exchanged 30 million barrels in response to concern over low distillate levels in Northeast.
- October 2002: Exchanged 296,000 barrels with Shell Pipeline Co. to secure Capline storage tanks in advance of Hurricane Lili.
- September/October 2004: Exchanged 5.4 million barrels in response to physical shortages of crude oil supplies in the Gulf of Mexico following Hurricane Ivan.
The DOE includes a series of questions and answers, including:
Question: When can the Reserve be used?
Answer: The circumstances that might require the use of the Strategic Petroleum Reserve are defined in the Energy circumstances that might require the use of the Strategic Petroleum Reserve are defined in the Energy Policy and Conservation Act (EPCA). Generally, there are three possible types of drawdowns envisioned in the Act:
- Full drawdown: The President can order a full drawdown of the Reserve to counter a "severe energy supply interruption." EPCA defines this as "a national energy supply shortage which the President determines -
(A) is, or is likely to be, of significant scope and duration, and of an emergency nature
(B) may cause major adverse impact on national safety or the national economy; and
(C) results, or is likely to result, from (i) an interruption in the supply of imported petroleum products, (ii) an interruption in the supply of domestic petroleum products, or (iii) sabotage or an act of God.
EPCA also states that a severe energy supply interruption "shall be deemed to exist if the President determines that -
(A) an emergency situation exists and there is a significant reduction in supply which is of significant scope and duration;
(B) a severe increase in the price of petroleum products has resulted from such emergency situation; and
(C) such price increase is likely to cause a major adverse impact on the national economy."
- Limited drawdown: If the President finds that -
(A) a circumstance, other than those described [above] exists that constitutes, or is likely to become, a domestic or international energy supply shortages of significant scope or duration; and
(B) action taken....would assist directly and significantly in preventing or reducing the adverse impact of such shortage"
then the Secretary may draw down and distribute the Strategic Petroleum Reserve, although in no case:
"(A) in excess of an aggregate of 30,000,000 barrels....
(B) for more than 60 days....
(C) if there are fewer than 500,000,000 barrels....stored in the Reserve."
- Test Sale: The Secretary of Energy is authorized to carry out test drawdowns and distribution of crude oil from the Reserve. If any such test drawdown includes the sale or exchange of crude oil, "then the aggregate quantity of crude oil withdrawn from the Reserve may not exceed 5,000,000 barrels during any such test drawdown or distribution."
Hurricane Charity Issues
How do you find a responsible relief agency that is working to help storm victims? Here is a Web site that searches a database of charities to sort out who is doing what.
The Christian Science Monitor reported that the Red Cross has an army of more than 5,000 volunteers on the way and on the ground.
Hot meals are also on their way -- 80,000 per day -- thanks to the Texas Baptist Men, a ministry with a history of disaster response. It plans to have available more than a dozen kitchens in Louisiana that can serve "one-pot meals," such as stew, chili, or chicken and rice. The kitchens are self-sufficient, with generators, water purifiers, and propane. To get to the most devastated areas, the group's members bring their own chain-saw units, along with chaplains and portable showers for those in need.
The Red Cross typically pays for the food, and the Texas Baptist Men prepare it. The Texas chapter alone has 18 mobile units. Seven are on their way, and the rest are on standby, says Gary Smith, disaster relief coordinator for the Texas Baptist Men in Dallas. "Earlier this year we mobilized for Hurricane Emily," he says, "but it was nothing like this."
The Baptist, Lutheran and Methodist churches, Churches of Christ and many others all have emergency relief organizations that move quickly into disaster areas.
Here is a list of some of the many charities doing work in the aftermath of the storm:
American Red Cross
Disaster services and relief
Click here for Red Cross financial information.
Emergency response program
Click here for Church World Service financial information.
Providing disaster relief and building supply lines
Click here for Convoy of Hope financial information.
Helping to try to keep animals alive in face of the storm. A team is on its way to the storm area.
Click here for Noah's Wish financial information.
Planning to serve 400,000 hot meals a day in the disaster areas
Helping victims of hurricanes locally
1. Identify your preferences.
"Disaster relief" comes in many forms -- emergency shelter, food, clothing, potable water, medical assistance, even communications as aid workers coordinate activities and survivors search for family members.
Think about which activities you want to support. There's no right or wrong answer, just what's right for you.
2. Focus on the mission.
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Look at each charity's description in the GuideStar search results, on its Web site, or in its literature.
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Find the nonprofits that fit your criteria.
All nonprofits listed on GuideStar are either registered with the IRS or have provided proof that they meet the IRS criteria for exempt organizations. If a charity you are thinking of supporting is not on GuideStar, ask to see its letter of determination. If the organization is faith-based, ask to see its official listing in a directory for its denomination.
3. Look at how the charity defines its goals and evaluates its own performance.
An effective charity:
If you are comparing different charities, be sure to compare charities that do the same kind of work. The type of work a nonprofit does can affect its operating costs dramatically. The list continued:
Remember that although financial measures such as administrative and program ratios are important, they are only one part of the picture. The true measure of a charity's effectiveness is whether it accomplishes its mission.
4. Avoid charities that won't share information or that pressure you.
Reputable nonprofits:
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Will discuss their programs and finances.
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Don't use pressure tactics.
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Are willing to send you literature about their work or direct you to a Web site.
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Will take "no" for an answer.
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Will answer questions about how your contribution will be used.
Give directly to the charity. Telemarketing is big business. You think all your money is going to the cause, when, in fact, a huge chunk may be going to the solicitors.
Don't give out personal banking information. If a charity wants to deduct the money right from your checking or savings account, that's not an agency you want to deal with.
Don't give cash. Write a check made out directly to the charity. That way they are the only ones who can cash it, and you'll have a record for tax purposes.
Giving in person may seem like a nice idea to the person holding the canister at the mall, but don't, unless you are absolutely sure of their organization. Tell them you'll send a check after you check out their legitimacy with the attorney general's office.
The Situation: With Links
Here is the Federal Emergency Management Agency Web site, which explains what the agency is doing and what it plans to do.
Emergency declarations for Hurricane Katrina:
State Emergency Management Links (for local issues and concerns about evcauations, preparations, shelters and safety):
The American Red Cross said it had thousands of volunteers mobilized for the hurricane.
The Environmental Protection Agency sent emergency crews to Louisiana and Texas because of concern about oil and chemical spills.
The Department of Defense dispatched emergency coordinators to Alabama, Florida, Louisiana and Mississippi to provide communications equipment, search and rescue operations, medical teams and other emergency assistance.
The Department of Health and Human Services sent 38 doctors and nurses to Jackson, Miss., to be used, where they are needed, and 27 pallets of medical supplies to Louisiana, with first aid materials, sterile gloves and oxygen tanks.
Could the Storm Push Delta, Northwest Airlines into Bankruptcy?
Fuel prices, cancellations and interruptions cause more pain. Here's a story from the AP.
Workplace Deaths
Here's a quiz. What were the top causes of workplace deaths in 2004? The answer (according to a new Bureau of Labor Statistics report) is highway incidents/accidents and falling (as in, off ladders and roofs). More people die at work from "contact with objects and equipment" than die from workplace assault or homicide.
What is the deadliest occupation? Logging is the fairly consistent winner in this category, as it has been for some time. The study says:
Among the individual occupations with high rates of fatal injury were logging workers (92.4 per 100,000 workers), aircraft pilots and flight engineers (92.4 per 100,000), fishers and related fishing workers (86.4 per 100,000), and structural iron and steel workers (47.0 per 100,000).
When you consider just the raw number of deaths, other jobs rise to the top of the list.
Fatal work injuries were higher in transportation and material-moving occupations (up 7 percent) and construction and extraction occupations (up 9 percent). These two groups combined accounted for nearly half (46 percent) of all the fatal work injuries in 2004.
Transportation and material-moving occupations accounted for the largest number of fatal work injuries of any major occupational group (1,490 fatalities, up from 1,393 in 2003). The fatality rate for this occupational group rose from 16.7 fatalities per 100,000 in 2003 to 17.5 in 2004. Motor vehicle operators recorded two-thirds of the fatal work injuries in this occupational group (1,005 fatal work injuries, up 5 percent from 2003). Material-moving occupations, such as forklift operators and refuse collectors, recorded the second-highest total in this group (271 fatalities). Fatal work injuries among material moving occupations were up 8 percent in 2004.
Here are some key findings of the 2004 Census of Fatal Occupational Injuries:
- Fatal work injuries among Hispanic workers were up 11 percent in 2004 after declining the previous two years.
- The number of fatal work injuries among older workers (55 years of age and older) rose 10 percent in 2004, but fatalities among younger workers (16 to 24 years of age) declined.
- Workplace homicides were down sharply in 2004 to the lowest level ever recorded by the fatality census.
- Fatal work injuries resulting from being struck by an object rose 12 percent in 2004, and overtook workplace homicide as the third most frequent type of fatal event.
- Fatal falls increased by 17 percent to a new series high, led by increases in the number of fatal falls from ladders and from roofs.
- The number of fatal work injuries in the construction sector rose 8 percent in 2004, but because of employment increases in this sector, the fatality rate for construction was not significantly higher than the rate reported in 2003.
- Twenty-seven states reported higher numbers of fatalities in 2004 than in 2003.
Striking Differences
The Dallas Morning News has done it again: another big investigation on the jury selection system in Dallas. The newspaper spent two years looking at jury data from felony court trials.
Key Findings:
- Dallas County prosecutors excluded black jurors at more than twice the rate they rejected whites.
- Defense attorneys excluded whites at more than three times the rate they rejected blacks.
- Even when blacks and whites gave similar answers to key questions asked by prosecutors, blacks were excluded at higher rates.
- Blacks ultimately served on juries in numbers that mirror their population primarily because of the dueling prosecution and defense strategies.
- Complete methodology | From the editor
This is the second major project the Morning News has launched on jury selection. As the site explains:
In March 1986, The Dallas Morning News published a study of jury selection that showed prosecutors under longtime District Attorney Henry Wade were using peremptory or discretionary strikes to exclude almost 90 percent of eligible blacks.
The analysis was subsequently cited as part of a U.S. Supreme Court opinion that established an unprecedented process to eliminate the practice of jury discrimination that had plagued the American justice system since the Reconstruction era.
Read The News' 1986 series
The "Striking Differences" project includes some interesting Web-exclusive elements:
We are always looking for your great ideas. Send Al a few sentences and hot links.
Editor's Note: Al's Morning Meeting is a compendium of ideas, edited story excerpts and other materials from a variety of Web sites, as well as original concepts and analysis. When the information comes directly from another source, it will be attributed and a link will be provided whenever possible.
