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Democrats Urge Use of Stratgic Oil Reserve as Industry Backs Conservation

Bloomberg -- President Barack Obama should release crude from the Strategic Petroleum Reserve to stem rising gasoline prices, three U.S. House Democrats said, a move the energy industry opposes.

“This most-recent run-up in prices is primarily the result of fear driving oil markets,” Representatives Ed Markey of Massachusetts, Peter Welch of Vermont and Rosa DeLauro of Connecticut said today in a letter to Obama. “We urge you to consider again deploying oil” in the reserve “to combat the rapid price escalations resulting from speculation.” The administration declined to comment on the request.

The American Petroleum Institute, the biggest U.S. lobbying group for the industry, said releasing oil from about 696 million barrels held in the reserve might push prices lower for a short time, if at all.


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Submitted Feb 23, 2012 By: Mudsprings
Category: Daily News Article Discussions > Topics Add to favorite topics  
Author Topic: Democrats Urge Use of Stratgic Oil Reserve as Industry Backs Conservation Back to Topics
REPLIES (newest first) Post a Reply
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cheap59
Champion Author Michigan

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Message Posted: Feb 23, 2012 1:45:51 PM

Save the reserve for our use. The last time they sold our oil, the price of gas stayed the same!!
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cloud23465
Champion Author Virginia Beach

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Message Posted: Feb 23, 2012 1:45:49 PM

If we used/drilled for our own oil, we wouldn't be in this situation would we?
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kwmcbrid
Veteran Author Iowa

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Message Posted: Feb 23, 2012 1:45:45 PM

Not yet. Wait until gas is $4.95 and every speculator is fully invested. Then wholesale dump crude and ruin every speculator financially.
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mfeldstein
Champion Author Ottawa

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Message Posted: Feb 23, 2012 1:45:19 PM

Could help. It did for a few days several months ago.
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seabrz7
Champion Author California

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Message Posted: Feb 23, 2012 1:44:38 PM

The Key word in that paragraph is ".... fear driving oil markets."
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Gasazhunter
Champion Author Phoenix

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Message Posted: Feb 23, 2012 1:42:48 PM

Ok.
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MedicKirk1
Champion Author New Hampshire

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Message Posted: Feb 23, 2012 1:42:41 PM

I thought that's why we have it.
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ACTown
Champion Author Oregon

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Message Posted: Feb 23, 2012 1:42:26 PM

politics as usual, no result.
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s6sputnik
Champion Author Austin

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Message Posted: Feb 23, 2012 1:41:43 PM

Strategically!
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brother31
Rookie Author Texas

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Message Posted: Feb 23, 2012 1:41:30 PM

BurntOrange,

You must be one of those that the fuss is all about, one of them there speculators. And why do you think they are enlarging the Panama Canal. It's being done so that the oil supertankers have a shorter route to China.
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julius1st4
Champion Author Ontario

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Message Posted: Feb 23, 2012 1:39:43 PM

It would have very "Minimal" effect.
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DCbeachbum
Champion Author South Carolina

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Message Posted: Feb 23, 2012 1:38:10 PM

If the oil was taken from the SPR every time the price of gasoline goes up. The US would be tapping it every other month. Then when an emergency does occur we will be up the creek. So I for one say not to tap it.
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jeffbone
Champion Author Virginia

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Message Posted: Feb 23, 2012 1:35:27 PM

A totally ineffective and inappropriate use of the SPR...
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khareabhishek
All-Star Author Milwaukee

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Message Posted: Feb 23, 2012 1:34:04 PM

Surely releasing the strategic reserves, just to control price would be a bad idea, but if govt. just ask the oil companies to stop making profit over speculation and show some corrective measures to industry about the iran issue, could simply do the work of controlling the prices.
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EricSorenW
Rookie Author Florida

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Message Posted: Feb 23, 2012 1:33:01 PM

At least some Dems are realizing Obama is clueless...
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Z51Corvette
Champion Author Austin

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Message Posted: Feb 23, 2012 1:32:31 PM

A definite band aid! The Democrats want this so the American people will be "happier with them". Their policies on energy got us to this place. It's time they faced the music!
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oaksfarmer
Veteran Author Toronto

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Message Posted: Feb 23, 2012 1:31:28 PM

The 696 million barrels represents the US requirements for about one month if an emergency arose.
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unicornpmb
Champion Author Buffalo

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Message Posted: Feb 23, 2012 1:30:28 PM

Band-aid for a really big cut.
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oldhillbillyAZ
Champion Author Tucson

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Message Posted: Feb 23, 2012 1:28:17 PM

KansasGunman says:

Political BS, won't help one iota as there is plenty of oil...the oil companies are simply shipping the refined product to other countries where they can make more profit....."EXACTLY"

Building the pipeline is like building a "Freeway" for getting the fuel out of this country. It won't lower the price of gas... It will just lower the cost to the oil companies..."more profit"

Drill..baby.. drill...Every time I hear this it just goes to show how mentally challenged people are today. All our jobs have left the country because these "mentally challenged" people feel they can "get ahead" by buying cheaper Chinese products. Record numbers of unemployed...how many people have lost their homes...Now what we should do is allow the oil companies to "drill.. baby.. drill" and sell our natural resources to the highest bidder.

We need to fix the problem not put a band-aid on it. Problem is...
Republicans vs Democrats... Looser is the American people...
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rpr77
Champion Author Philadelphia

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Message Posted: Feb 23, 2012 1:26:34 PM

ok
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SOLONGCOLD
Champion Author Phoenix

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Message Posted: Feb 23, 2012 1:24:31 PM

you said it !
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LSU_TIGERS_dmb
Champion Author Louisiana

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Message Posted: Feb 23, 2012 1:24:23 PM

Of course the do since it's their fault gas is so high. Hurry up nov
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singlemom27
Champion Author Ventura

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Message Posted: Feb 23, 2012 1:23:58 PM

take oil off the exchanges and we won't see these wild price swings and unsubstantiated increases.
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MVP1
Champion Author New York

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Message Posted: Feb 23, 2012 1:23:53 PM

Stupidity at it's finest... the crisis might be that they are up for re-election.
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3912
All-Star Author Virginia Beach

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Message Posted: Feb 23, 2012 1:22:50 PM

Here's a novel idea...TAP THE OIL THAT'S IN THE GROUND!!! Just sayin' :)
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bell05
Champion Author Atlanta

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Message Posted: Feb 23, 2012 1:21:49 PM

You got that right INBwana and Skunk63.

What good is one low day and it is back up the next?
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Skunk63
Champion Author Phoenix

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Message Posted: Feb 23, 2012 1:19:58 PM

The point of that reserve is basically to serve as emergency supply during a time of war. I don't think this really qualifies as an emergency.
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boatcrazyinme
Champion Author Maine

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Message Posted: Feb 23, 2012 1:17:28 PM

we need lower prices.
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2011dmax2500hd
Rookie Author North Carolina

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Message Posted: Feb 23, 2012 1:17:05 PM

why we will just have to fill it back up later
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BigBillMI
All-Star Author Detroit

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Message Posted: Feb 23, 2012 1:16:01 PM

blah blah .....
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gasman50
Champion Author Portland

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Message Posted: Feb 23, 2012 1:15:47 PM

What a dumb idea
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humblepie
Champion Author Toledo

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Message Posted: Feb 23, 2012 1:15:39 PM

more foolishness, omg 2012............
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Fhuang66
Champion Author Cleveland

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Message Posted: Feb 23, 2012 1:15:25 PM

Sure, sale for a profit for the US government. not just the oil company can make money.
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DRJ
Champion Author Columbus

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Message Posted: Feb 23, 2012 1:13:55 PM

Or you could....I dunnno....MAYBE APPROVE THE KEYSTONE PIPELINE!!!!!!!!!!!
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bigoilscamsus
Champion Author Lansing

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Message Posted: Feb 23, 2012 1:13:46 PM

Protest high gas prices!! Picket the 15 highest priced gas stations in your area!! Join the gas price protest at the WALK ON WASHINGTON and at all the other State Capitals on Friday June 1st , 2012!! Bring your gas price protest signs and show Big Oil what you think of the obscene profits that Big Oil has been making at the American consumers expense!!!
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h2ojumper
Champion Author Austin

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Message Posted: Feb 23, 2012 1:13:43 PM

ok
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gatekeepertwo
Veteran Author Wilmington

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Message Posted: Feb 23, 2012 1:13:36 PM

can anyone remember that President Nixon froze prices at the pump? Why can't we do that again?
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big_mac64
Champion Author Tennessee

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Message Posted: Feb 23, 2012 1:06:51 PM

ok
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Yankee829
Champion Author Dallas

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Message Posted: Feb 23, 2012 1:06:11 PM

Hype and more hype
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4TIGERDOG
Sophomore Author Phoenix

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Message Posted: Feb 23, 2012 1:05:54 PM

GET EM OUT
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gils
Champion Author Ohio

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Message Posted: Feb 23, 2012 1:05:06 PM

Why? get rid of the spectulators who are causing this.
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BurntOrange
Champion Author Austin

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Message Posted: Feb 23, 2012 1:04:17 PM

Remain calm.

3 members of Congress, in an election year, wrote a letter to the president.

There are no plans, or even serious suggestions, to release oil from the strategic reserve.

This is political theater.
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INBwana
Champion Author Indiana

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Message Posted: Feb 23, 2012 1:03:36 PM


This is not the solution. It will only be a temporary day fix, and then up up and away! Let us do a permanent fix, build refineries, build pipelines, drill, do away with the EPA and un-elect OBozzo!

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MG_Sputnik
Champion Author Philadelphia

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Message Posted: Feb 23, 2012 1:02:47 PM

That won't do a damn thing. We have too much oil. That's why we're exporting it. Supply and demand DO NOT affect prices anymore.
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Cuzilla
Champion Author Indianapolis

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Message Posted: Feb 23, 2012 1:01:18 PM

I thought the reserve was supposed to be used for EMERGENCIES, not for Obama's political machinations to get re-elected!
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30mpg80
Champion Author Lexington

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Message Posted: Feb 23, 2012 12:59:57 PM

Not now! We have price discomfort, not a supply emergency.
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Bill68Prius
Champion Author Maryland

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Message Posted: Feb 23, 2012 12:57:05 PM

No don't do it. The last time USA used strategic oil reserve prices went up. Learn from our history.

[Edited by: Bill68Prius at 2/23/2012 2:57:43 PM EST]
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BurntOrange
Champion Author Austin

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Message Posted: Feb 23, 2012 12:56:04 PM

NHlivefree wrote:

"Please note that the KXL to Valero's duty-free port on the Texas Gulf Coast will only help Royal Dutch Shell get their Alberta crude to China and any other world wide high bidders. None of this Canadian crude is allocated for or contractually obligated for use in the USA."

--------------------

1) The US imports about 1/2 the crude we use. There are no plans to export crude.

2) It would be impractical to export crude (or refined products--which is what will actually be exported) to China from the Texas Gulf coast. Grab a world map and take a look.

3) Although a fraction of the products refined from the Alberta oil would be exported, there are no plans to export 100% of the refined products.


Refining oil results in a number of different products.

Breakdown of products refined from a barrel of oil


Since the US tends to favor gasoline for transportation, we export more diesel and other refined products than gasoline, even though gasoline makes up about half of the refined product derived from crude.

Latest Government report on US imports and exports of oil and refined products.
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NuffSed
Rookie Author California

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Message Posted: Feb 23, 2012 12:55:50 PM

Democrats/Republicans or whatever, the Strategic Petroleum Reserve was never set up to reduce gas costs, it is intended to be used in the event of a National emergency such as severe curtailment of our crude oil imports originating external to the US. Use it now and be sorry when those who don't like us either cut back on what they will allow us to have or REALLY raise prices on international crude. We are vulnerable and have no position to bargain now, without the Reserve our goose is cooked.

If I didn't like this country, I would love to see the US "WASTE" the Reserve. And, wouldn't it be great if those who theoretically "REPRESENT" us had the intelligence to make good decisions? I never cease to be astounded by the stupidity or the calculated damaging things politicians will do for a vote.
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snakebitef22
All-Star Author Corpus Christi

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Message Posted: Feb 23, 2012 12:55:14 PM

Obama just regulate the price they did it in the 70 and gas drop like a rock.....YOU CAN DO IT ....
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Alaydown
Champion Author Los Angeles

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Message Posted: Feb 23, 2012 12:55:01 PM

As is typical with most DemocRAT proposals, this one accomplishes nothing except that it wastes the use of our Strategic Petroleum Reserve (SPR) and it forces us to refill it with higher priced oil. The SPR is for emergency use only. Contrary to what Obama and the DemocRATS think, getting them reelected is NOT an emergency.

If they want to do anything to lower the price of gasoline, they should do what Bush did in July 2008 to lower gasoline prices. He announced that he would suspend the moratorium on drilling off the coasts, and then immediately follow through with increasing the number of drilling leases and permits. That had an immediate effect by causing prices to plummet to a low of $1.61 per gallon.

The price of gasoline when Obama took office was $1.79 per gallon. He has obstructed domestic production ever since, and the price is climbing to new highs. So don't expect that it will return to what it was before he was elected until after he is voted out of office.

For a small temporary decrease in price, they could also suspend the federal tax on gasoline. But the best way to reduce the price long term is what I stated above. Voting for anyone but Obama in 2012 will also lower the price.
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highdesertman
Champion Author Albuquerque

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Message Posted: Feb 23, 2012 12:53:02 PM

Whether we actually release the oil from the reserve is not important. However, the willingness to do so can serve as enough of a threat that it should take the edge off of the speculative fever. It's all about the psychology that drives markets.
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