AMP Tells Congress: U.S.-Flag Fleet Ready to Meet Oil Demands In Case of Refinery Closure (4/26)

 

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The American Maritime Partnership (AMP), an industry group made up of numerous maritime organizations including the SIU, delivered written testimony to Congress this week. The testimony makes it clear that if a major oil refinery that services the U.S. Northeast should close as expected, the U.S.-flag maritime fleet has the capability to carry the necessary oil from other locations to meet the demand.

 

Below is an April 26 news release by AMP with a link to a PDF file containing the full testimony.

 

American Maritime Partnership (AMP) Tells Congress That American Fleet Can Meet Additional Demand If Sunoco Refinery Closes

 

In written testimony to the U.S. Congress’ Joint Economic Committee, the American Maritime Partnership (AMP) criticized and corrected an Energy Information Administration (EIA) report that said American tank vessels may be “in short supply” if a Northeast refinery closes later this year.

 

EIA’s assessment came in a February 2012 report titled Potential Impacts of Reductions in Refinery Activity on Northeast Petroleum Markets.  That report counted only American tankers and not tank barges, thereby missing about 50 percent of American tank vessel capacity, a “substantial error,” AMP testified.

 

AMP told the Committee that ample American tank vessel capacity exists to transport any additional petroleum product.  The Committee is meeting today regarding the impact of possible refinery closures on petroleum supplies in the Northeast.

 

Since the issuance of the original report, EIA has conceded that it missed counting about 270 tank vessels, including large articulated tug barges, but has refused to change its conclusions.

 

“Remarkably, EIA now finds itself taking the position that even though it failed to count approximately 50 percent of the American tank vessel capacity, its original conclusion has not changed,” the AMP testified.  “More recently, EIA has said that ‘there may be no way to address [our] concerns’ and that ‘assessing the degree of impact may not be possible.’”

 

AMP represents all elements of the American domestic maritime industry, including vessel operators, shipbuilders, maritime personnel, and pro-defense organizations.

 

“We are deeply disappointed that EIA made no attempt to speak to industry officials before issuing its original report and now refuses to alter its original erroneous conclusion,” the AMP said.  “To our amazement, the original study with vessel numbers that even EIA admits are blatantly wrong remains prominently displayed on the EIA website.” 

 

Click here for a link to the full testimony

 

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