STUDY GROUP URGES INCREASED U.S. OIL RESERVES
A study group said the United States
should increase its strategic petroleum reserve to one mln
barrels as one way to deal with the present and future impact
of low oil prices on the domestic oil industry.
    U.S. policy now is to raise the strategic reserve to 750
mln barrels, from its present 500 mln, to help protect the
economy from an overseas embargo or a sharp price rise.
    The Aspen Institute for Humanistic Studies, a private
group, also called for new research for oil exploration and
development techniques.
    It predicted prices would remain at about 15-18 dlrs a
barrel for several years and then rise to the mid 20s, with
imports at about 30 pct of U.S. consumption.
    The study cited two basic policy paths for the nation: to
protect the U.S. industry through an import fee or other such
device or to accept the full economic benefits of cheap oil.
    But the group did not strongly back either option, saying
there were benefits and drawbacks to both.
    It said instead that such moves as increasing oil reserves
and more exploration and development research would help to
guard against or mitigate the risks of increased imports.
 Reuter
