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I will be very disappointed if Obama gives into political pressure and taps the SPR. It should only be used for national emergencies that causes a complete disruption of supply. What is the damn point of calling it a strategic reserve if you are going to use it every time gas prices go up?
Last edited by Bostonian123; 03-06-2011 at 11:34 AM..
AFAIK The spokesman just said that they were looking at all options - not that using the reserves is seriously being considered. The US reserve is about a 30 day reserve of unrefined crude. Getting that refined and to market wouldn't be a quick solution -and wouldn't make a dent on pricing - if we tapped 10% thats only a 3 day supply along with the logistics & costs of getting it to market. The reserve is for emergencies not price reduction.
Quote:
disappointed if Obama gives into political pressure and taps the SPR
This is the first I've seen this. Wishful thinking by some, maybe? And everyone is correct, the SPR is for emergencies, such as a loss or great diminuation of supply as happened in the aftermath of Katrina. The price increase now is driven by the futures market/speculation and not a supply issue. Yet.
In fact, and I think it was Marketwatch, predicted a decrease of $.75/gal in the next 30 days or so a couple days ago. I wasn't really paying attention when I heard it so I don't remember what the source was.
Last edited by North Beach Person; 03-06-2011 at 11:37 AM..
Reason: spelling, for the overly critical
AFAIK The spokesman just said that they were looking at all options - not that using the reserves is seriously being considered. The US reserve is about a 30 day reserve of unrefined crude. Getting that refined and to market wouldn't be a quick solution -and wouldn't make a dent on pricing - if we tapped 10% thats only a 3 day supply along with the logistics & costs of getting it to market. The reserve is for emergencies not price reduction.
Pressure from whom?
There is always pressure from Congress on the President to use the SPR to lower gas prices. Our Senators and Representatives feel the need to show their constituents that they are doing "something" about high gas prices.
I will be very disappointed if Obama gives into political pressure and taps the SPR. It should only be used for national emergencies that causes a complete disruption of the import of oil. What is the damn point of calling it a strategic reserve if you are going to use it every time gas prices go up?
I think the SPR is ten or twenty times larger than needed for strategic military purposes. We would do well to sell up to 75% of the oil out of it at prices above $100/barrell, and start refilling it at prices below $50.
If we could chop the peaks and troughs off the price over time, the economy would perform better and we would make better decisions with our money. Over the past thirty years, when prices are high we invest a lot in alternatives. WHen the price drops, that investment is lost. A more stable price would have us investing smarter. The market for vehicles is also affected by volatility--demand for gas-guzzlers and super-economy cars fluctuates widely, depending on volatile gas prices.
Plus we would make a pile of money, buying low and selling high.
Nothing more than an attempt to quell the growing displeasure associated with rising fuel cost. They ain't "tapping' squat.
Thank you. And if they ever do it will be for military and federal use not so Joe Brombacher can lower his expenses.
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