THE FREE AND CLEAR PRESS

[DueDillinger]

U.S. oil tanker law could raise gasoline prices

Wednesday, March 17, 2004
By Tom Doggett, Reuters

WASHINGTON ? U.S. gasoline supplies could be in
short supply this summer, and pump prices may skyrocket
even more because of a new law that would ban oil
tankers from entering U.S. ports if the ships fail to meet
security standards.

Beginning on July 1, the United Nations is requiring all
ships and ports around the world to comply with tough
international antiterror procedures that were adopted
after the Sept. 11 attacks on the United States.

The new standards will kick in at the height of the busy
U.S. summer driving season, when refineries are
producing as much gasoline as possible. U.S. retail
gasoline prices are already at near-record highs and
expected to continue rising.

The United States depends on oil imports to meet almost
60 percent of its daily petroleum demand.

But the U.S. Coast Guard said it does not plan any special
treatment for oil and gas tankers and will ban ships from
entering ports if necessary.

"We aren't taking any different stance on the oil and gas
(shipments)," said agency spokeswoman Jolie Shifflet.
"Owners and operators of oil and gas tankers should
expect to encounter the same kind of security
inspections as all the other international vessels that are
coming into the U.S."

While turning back a ship is the most severe response,
the Coast Guard could also take less drastic action
against violators, such as boarding and inspecting
tankers.

The U.S. market needs every barrel of oil and gasoline it
can get as the the Energy Department forecast last week
that retail motor fuel prices this summer will reach a
record high.

"The prospects for oil prices diminishing significantly
prior to the driving season have weakened and there is a
high likelihood of additional gasoline price increases,"
the department's Energy Information Administration
said in its latest forecast.

The new security guidelines cover all goods,
commodities, and merchandise transported aboard ships.
But U.S. motorists could feel an immediate impact at the
pump if tankers carrying gasoline from ports that are not
in compliance are banned from docking in American
waters.

Shifflet would not say if the Coast Guard is worried that
some major oil producing nations might not meet the
security standards, which are being overseen by the
London-based International Maritime Organization
(IMO).

OPEC members that are reportedly behind schedule in
meeting the July 1 deadline include Saudi Arabia,
Nigeria, Indonesia, Kuwait, and the United Arab
Emirates.

IMO officials could not immediately be reached for
comment.

The new standards require ships and ports to develop
plans for assessing threats that could cause significant
lost of life or property damage and adopt security
measures to mitigate those risks.

http://www.enn.com/news/2004-03-17/s_14090.asp

(Ya gotta love the acronym for the International Maritime Organization, IMO. LOL! --DD)