Obama may tap strategic reserves

[sawyerloggingon]

White House may tap oil reserve - BostonHerald.com


WASHINGTON -" As rising gasoline prices threaten to put a drag on the already sluggish economic recovery, the Obama administration is leaving open the possibility that it could draw from the nation’s emergency reserve in an attempt to reverse the trajectory."


With the Mideast on the verge of blowing up , Iran and Syria too be precise this would be the dumbest thing obama has done yet and that's saying something. What will we do for oil if he uses our reserves up for political purposes and suddenly the spigot from the Mideast runs dry?

 

[rocket88]

White House may tap oil reserve - BostonHerald.com


WASHINGTON -" As rising gasoline prices threaten to put a drag on the already sluggish economic recovery, the Obama administration is leaving open the possibility that it could draw from the nation’s emergency reserve in an attempt to reverse the trajectory."


With the Mideast on the verge of blowing up , Iran and Syria too be precise this would be the dumbest thing obama has done yet and that's saying something. What will we do for oil if he uses our reserves up for political purposes and suddenly the spigot from the Mideast runs dry?

So it's Obama's fault that gas prices are so high, right? Now he proposes action that would have a far more immediate effect than opening up anything and everything to drilling, and he shouldn't do it?

What do you think the strategic reserves are for? It's so that our national security is not at the mercy of OPEC. High fuel prices potentially impact our national security, so bringing them down is part of what the strategic reserves are for.

 

[sawyerloggingon]

So it's Obama's fault that gas prices are so high, right? Now he proposes action that would have a far more immediate effect than opening up anything and everything to drilling, and he shouldn't do it?

What do you think the strategic reserves are for? It's so that our national security is not at the mercy of OPEC. High fuel prices potentially impact our national security, so bringing them down is part of what the strategic reserves are for.

.The strategic reserves are for an emergency supply of oil if we were to suddenly not be able to get enough oil to fill our needs both domestically and militarily. You never answered my main question, what will we do for oil if it is suddenly cut off from the Mideast after obama uses our reserves to get reelected?


"Access to the reserve is determined by the conditions written into the 1975 Energy Policy and Conservation Act (EPCA), primarily to counter a severe supply interruption. The maximum removal rate, by physical constraints, is 4.4 million barrels per day (700,000 m3/d). Oil could begin entering the marketplace 13 days after a presidential order. The Department of Energy says it has about 59 days of import protection in the SPR. This, combined with private sector inventory protection, is estimated to equal 115 days of imports.

The SPR was created following the 1973 energy crisis. The EPCA of December 22, 1975, made it policy for the U.S. to establish a reserve up to 1 billion barrels (159 million m³) of petroleum. A number of existing storage sites were acquired in 1977. Construction of the first surface facilities began in June 1977. On July 21, 1977, the first oil—approximately 412,000 barrels (65,500 m3) of Saudi Arabian light crude—was delivered to the SPR. Fill was suspended in FY 1995 to devote budget resources to refurbishing the SPR equipment and extending the life of the complex. The current SPR sites are expected to be usable until around 2025. Fill was resumed in 1999.


Obviously it is for supply interruption NOT to keep price of oil down too get reelected.

 

[rocket88]

.The strategic reserves are for an emergency supply of oil if we were to suddenly not be able to get enough oil to fill our needs both domestically and militarily. You never answered my main question, what will we do for oil if it is suddenly cut off from the Mideast after obama uses our reserves to get reelected?

Estimates peg the amount in the reserve as being about enough for a little more than a month at our current usage rate. That goes pretty high in times of war, so that may be significantly less than that.

Basically, assuming any war lasts more than one month (which is pretty likely), it won't make much of a difference. If we go with your numbers and say 115 days...do you really think that it'll be over in 4 months? It is for a temporary interruption. VERY temporary. Things blow up in Iran and Syria, it won't supply us for as long as it would have to. There's no way we can drill fast enough to make a difference if it blows up soon. Even at that point, the government would have to nationalize oil production to keep the supply safe.

In other words, it doesn't matter. The SPR wouldn't save us in any significant conflict.

 

[Slartibartfast]

White House may tap oil reserve - BostonHerald.com


WASHINGTON -" As rising gasoline prices threaten to put a drag on the already sluggish economic recovery, the Obama administration is leaving open the possibility that it could draw from the nation’s emergency reserve in an attempt to reverse the trajectory."


With the Mideast on the verge of blowing up , Iran and Syria too be precise this would be the dumbest thing obama has done yet and that's saying something. What will we do for oil if he uses our reserves up for political purposes and suddenly the spigot from the Mideast runs dry?

This tactic has been used before. The pricing of the oil market is largely based on information, which leads to speculation based on risk models.

By leaving open this possibility, it lowers the perception of risk which hopefully in turn will lower price.

 

[sawyerloggingon]

This tactic has been used before. The pricing of the oil market is largely based on information, which leads to speculation based on risk models.

By leaving open this possibility, it lowers the perception of risk which hopefully in turn will lower price.

The law specifically states the reserve is for a severe oil shortage and we are not currently facing any shortage, what part of that can't you get?

 

[Slartibartfast]

The law specifically states the reserve is for a severe oil shortage and we are not currently facing any shortage, what part of that can't you get?

Its not about what I do or do not get, its about past actions shedding light on current activity.

Here is some further reading which will shed light on your "sky is falling" attitude and hopefully replace it with reality.

Political Animal - Opening the Strategic Petroleum Reserve

http://www.usatoday.com/money/industries/energy/2005-08-28-oil-katrina_x.htm

 

[sawyerloggingon]

Its not about what I do or do not get, its about past actions shedding light on current activity.

Here is some further reading which will shed light on your "sky is falling" attitude and hopefully replace it with reality.

Political Animal - Opening the Strategic Petroleum Reserve

Bush may tap strategic oil reserve as prices soar - USATODAY.com

When Bush 41 did it the reason was the gulf war interrupted oil supplies so he was within the law.

When Bush 43 did it the reason was Hurricane Katrina had dramatically disrupted our oil supply so he was within the law.


When Clinton did it the reason was the same as now, politics. He was outside the law and if obama does it he too will be corrupting the purpose we have oil reserves and Incidentally when Clinton dit it the price of oil fell for about 5 minutes, it didn't work.

 

[pbrauer]

White House may tap oil reserve - BostonHerald.com


WASHINGTON -" As rising gasoline prices threaten to put a drag on the already sluggish economic recovery, the Obama administration is leaving open the possibility that it could draw from the nation’s emergency reserve in an attempt to reverse the trajectory."


With the Mideast on the verge of blowing up , Iran and Syria too be precise this would be the dumbest thing obama has done yet and that's saying something. What will we do for oil if he uses our reserves up for political purposes and suddenly the spigot from the Mideast runs dry?

This looks to me as a spin job by the right wing Boston Herald. :coffeepap:

 

[sawyerloggingon]

This looks to me as a spin job by the right wing Boston Herald. :coffeepap:

So I assume by your comment you think obama should not tap the reserves?

 

[Slartibartfast]

When Bush 41 did it the reason was the gulf war interrupted oil supplies so he was within the law.

When Bush 43 did it the reason was Hurricane Katrina had dramatically disrupted our oil supply so he was within the law.


When Clinton did it the reason was the same as now, politics. He was outside the law and if obama does it he too will be corrupting the purpose we have oil reserves and Incidentally when Clinton dit it the price of oil fell for about 5 minutes, it didn't work.

And in all cases, the primary reason was to settle the market. So its all good.

 

[rocket88]

The law specifically states the reserve is for a severe oil shortage and we are not currently facing any shortage, what part of that can't you get?

What does the law say about saying "Gee...maybe I'll do this" and letting the speculators do what they want with the information. It's an interesting theory that he's throwing the possibility, knowing that the whole market is based on speculation anyway.

 

[sawyerloggingon]

What does the law say about saying "Gee...maybe I'll do this" and letting the speculators do what they want with the information. It's an interesting theory that he's throwing the possibility, knowing that the whole market is based on speculation anyway.

Heres the exact law but it hasn't stopped obama, apparently he has opened the spigot, here we go.

Why Did Obama Open the Strategic Petroleum Reserve? | RedState

 

[sawyerloggingon]

Heres a site you libs may like better. High crime, misdemeanor? hmmmmm

 

[sawyerloggingon]

oops heres the site.

White House Defends Oil Reserve Sale Amid Whispers of Political Motivation - NYTimes.com

 

[sawyerloggingon]

"Call me suspicious," said Sen. Lisa Murkowski of Alaska, the ranking Republican on the Senate Energy and Natural Resources Committee. "The price at the pump has actually gone down from where we were six, eight weeks ago. What hasn't gone down are the unemployment numbers. What hasn't gone down are the shocks to the economy."

"I do happen to think that this is a political shortcut, if you will, by the administration to change the focus of the discussion right now," she added. "And I think that's unfortunate. It's short-sighted. We should not be using the SPR for political uses."



I couldn't agree more.

 

[rocket88]

Heres a site you libs may like better. High crime, misdemeanor? hmmmmm

So you want President Biden? :lamo

 

[sawyerloggingon]

so you want president biden? :lamo

good point!!!!!!!!!!!!!!!! Lmao

 

[Dickieboy]

Another interesting quote from the article:

Rep. Ed Markey of Massachusetts, the ranking Democrat on the House Natural Resources Committee, told reporters yesterday. "So I think to a certain extent this is a prophylactic action as well to prevent speculators from going back into the marketplace to drive the price up again over the summer."

Kinda sounds like a Democrat interjecting the birth control controversy into the gas price issue…lol

 

[rocket88]

"Call me suspicious," said Sen. Lisa Murkowski of Alaska, the ranking Republican on the Senate Energy and Natural Resources Committee. "The price at the pump has actually gone down from where we were six, eight weeks ago.

Then what is it you guys have been having a fit over???

BTW, I thought Murkowski was one of them RINOs that the TP hated.

 

[sawyerloggingon]

Then what is it you guys have been having a fit over???

BTW, I thought Murkowski was one of them RINOs that the TP hated.

We are having a fit over the fact gas has doubled since obama took the reigns and seems too be trending up yet again.


Even Lisa see's the absurdity of this move, that should impress you libs.


You know what's interesting though is that you libs constantly deny drilling more oil in US would stabilize prices but suddenly releasing a little from our reserves will do just that. You guys need to pick a story and stick with it.

 

[rocket88]

You know what's interesting though is that you libs constantly deny drilling more oil in US would stabilize prices but suddenly releasing a little from our reserves will do just that. You guys need to pick a story and stick with it.

Drilling would stabilize prices -- long term. Releasing from the reserves would do it in the short term.

New oil wells will take years to have much of an effect on prices. I favor more drilling. Not unlimited "drill wherever, whenever." Drilling is good as part of a comprehensive plan. "Drill baby drill" is not a plan, it's a bumper sticker.

 

[pbrauer]

So I assume by your comment you think obama should not tap the reservdes?

Because of the economy demand for gas is down, in fact our number one export today is petroleum fuels because prices are determined on the world stage.

 

[dontworrybehappy]

That is true, they are set on the world market. But for that reason, the president has little to no effect on the price of oil. No president does. And if he tries to, he's going to screw things up royally.

If Obama really wanted to help bring down the price of oil, he needs to have speculators thinking there will be a long term increase in the supply. That is done by drilling, not by tapping the oil reserves.

Of course based on prior performance, I wouldn't expect our idiot-n-thief to understand that.

 

[iguanaman]

That is true, they are set on the world market. But for that reason, the president has little to no effect on the price of oil. No president does. And if he tries to, he's going to screw things up royally.

If Obama really wanted to help bring down the price of oil, he needs to have speculators thinking there will be a long term increase in the supply. That is done by drilling, not by tapping the oil reserves.

Of course based on prior performance, I wouldn't expect our idiot-n-thief to understand that.

Speculators are not interested in long term anything, they can't take delivery on any oil and it costs them to hold those tankers out in the bay. All Obama is doing is calling their bluff and taking the wind out of their greedy sails. Bush had the Saudi's increasing production before his re-election bid which did the same thing. I doubt they will do the same for Obama after he got Bin Laden out of his cushy digs.