Local oil reserve to help drop pump prices
IBERVILLE PARISH- President Obama announced Thursday the release of 30 million barrels of oil from the Strategic Petroleum Reserve.
One of the four locations in the U.S. is between Addis and Plaquemine in Iberville Parish at the Bayou Choctaw reserve.
Several other countries will match the release. The news caused the price of a barrel of oil to drop more than $4 in one day.
One expert says that could lead to gas dropping below $3 a gallon soon. Don Redmon with AAA says it could happen in about 30 days.
Some people know the reserve is in their backyards, some don't.
Tara Bacile, who works nearby said, "I know it's very kinda hush, hush back there. Guarded and everything."
Bernice Rogers, who lives just acres away, said, "I ain't never know it was back there."
The Department of Energy says using the stash will tackle any potential summer gas surge.
All four locations hold a combined 727 million barrels of oil.
The last time oil was used from the stash was after Hurricane Gustav. Now, the agency wants less than 5% of the total to off-set a shortage stemming from the civil war in Lybia.
But with the cost of gas going down daily for almost a month, critics say there isn't a supply issue, this isn't an emergency and it shouldn't be done.
Brent Golleher, with Louisiana Mid-Continent Oil and Gas Association said, "If the administration is concerned about supply issues, then perhaps we suggest they start administering permits for oil and gas companies."
This 30 million barrels is the largest release the country has ever called for. However, it only covers about two days worth of what U.S. consumers normally use.