On one hand, I can see he wants to bring down the crude and the gas price down. On the other hand, I can see he is buying popularity with reserve truly set aside for really disasters, or disruptions. etc. What do you think? -------------------- Obama Considers Tapping Oil Reserve By MATTHEW L. WALD WASHINGTON — The Obama administration is considering tapping the Strategic Petroleum Reserve in response to rapidly rising gasoline prices brought on by turmoil in the Middle East, the White House chief of staff, William M. Daley, said on Sunday. “It’s something that only has been done on very rare occasions,” Mr. Daley said on “Meet the Press” on NBC, adding, “It’s something we’re considering.” Administration officials have sent mixed signals about the possibility of opening the reserve, which would add supply to the domestic oil market and tend to push down prices. Energy Secretary Steven Chu said on Friday that the administration was monitoring prices, but he has been reluctant to endorse more aggressive steps. “We don’t want to be totally reactive so that when the price goes up, everybody panics, and when it goes back down, everybody goes back to sleep,” he said. A few days earlier, Mr. Chu said the administration was watching the situation closely, but it expected oil production that had been lost in Libya would be made up by production elsewhere. Administration officials continue to emphasize the critical need for long-term steps to reduce oil use, like improving the fuel economy of cars and promoting battery-powered vehicles. But recently, five Senate Democrats have called for opening the reserve, which is stored in four salt domes in Texas and Louisiana. And on Feb. 24, three House Democrats from New England, where oil is used to heat homes, wrote to Mr. Obama saying that while exporters could increase production, “they also profit from oil price spikes and therefore have little incentive to quickly respond with the increased supply needed to calm markets.” In recent days, prices for the American benchmark crude, West Texas Intermediate, have exceeded $100 a barrel. Oil for April delivery settled at $104.42 a barrel on the New York Mercantile Exchange on Friday. The average price for a gallon of unleaded gasoline was $3.50 on Sunday, AAA reported, up from $3.12 a month earlier. Gasoline prices routinely rise as the weather turns warmer and people drive more, leading some experts to predict gasoline at $4 a gallon this summer. The Strategic Petroleum Reserve was established in response to the Arab oil embargo of 1973-4. It was tapped most recently in September 2008 in response to Hurricanes Gustav and Ike. At that time, the Energy Department arranged “exchanges” with oil companies whose normal supplies had been interrupted; the oil companies later made restitution in oil. The last time the government sold oil from the reserve to address supply interruptions was in 2005, after Hurricane Katrina. Sales were also made in January 1991 to calm global markets as the United States invaded Kuwait, which had been occupied the previous year by Iraq. The government suspended oil purchases when prices were approaching a peak in 2008, before the recession began. In that case, members of Congress argued that acquisitions for the reserve were contributing to higher prices, harming consumers.
He won’t do it unless things get a bit worse…
Does rising gas prices really qualify as an emergency? Why don’t we liquidate the gold at Ft. Knox to pay down the debt.
thepinkman Wrote: ------------------------------------------------------- > Why don’t we liquidate the gold at Ft. > Knox to pay down the debt. They want to, but GWB hid the key and won’t tell anyone where it is.
Every president has done this or talked about doing it. It’s purely political to show they’re aware of or trying to fix a problem impacting every American. In reality, it has little to no meaningful impact on price. These reserves should only be used for natural disasters and the military when supply is severely constrained…
It’s pointless and would make little, if any difference anyways. The higher prices being caused by fear and uncertainty worldwide, not by supply shortage. He’ll probably release a few barrels from the reserve right as things start to calm down in the mideast and then claim responsibility for the falling prices.
B.O is not wise in regards to anything he does…
@boston21, what has been done that was unwise; not unpopular but unwise? Leaving Health-care reform aside because it has not been fully implemented so we do not know what the final affect will be or if it will be struck down by the Supreme court.
Zesty Wrote: ------------------------------------------------------- > @boston21, what has been done that was unwise; not > unpopular but unwise? Leaving Health-care reform > aside because it has not been fully implemented so > we do not know what the final affect will be or if > it will be struck down by the Supreme court. Oy veh. Here we go.
boston21 Wrote: ------------------------------------------------------- > B.O is not wise in regards to anything he > does… yeah B.O. stinks.