Oil Price Jumps Threaten Economy

Oil price spikes, not the volume of imports, imperil the health of the U.S. economy, the U.S. General Accounting Office said Friday.

And to substitute more costly domestic U.S. oil production for oil imports without lowering overall oil consumption would be unlikely to “substantially lower the costs of oil supply disruptions,” the GAO said.

The GAO, Congress’ investigative arm, said most experts it contacted during its evaluation of Clinton administration energy policy recommended “a rapid and large release of oil from the nation’s Strategic Petroleum Reserve to blunt price increases” as soon as oil supply disruptions occur.