New US oil tanker law could raise gasoline prices

US 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 US 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 anti-terror 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 US summer driving season, when refineries are producing as much gasoline as possible. US 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 % of its daily petroleum demand. But the US 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 US."

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 US market needs every barrel of oil and gasoline it can get as the Energy Department forecast 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 US 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.
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.