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GasBuddy News Article

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
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Champion Author Memphis

Joined:May 2011
Message Posted: Feb 24, 2012 10:26:55 AM

Leave reserves alone
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Champion Author Portland

Joined:Aug 2006
Message Posted: Feb 24, 2012 3:06:06 AM

Democrats Urge Use of ‘Strategic’ Oil Reserve as Industry Backs Conservation? It did not work in the near past, why will it work now? Big oil bought it the last time and sold it on the world market for more profit, there was NO price relief at the pump!
Big oil exports fuel and natural gas to the world for higher profits. Barry supports natural gas and oil production for sale to the world to help pay for his *spending gone wild* addiction. Speculators, manipulators and the banks continue to unfairly and unjustly make the driving public pay higher prices at the pump for their benefit.
Whatever the size or shape of the vehicle, Produce and ‘Drive’ vehicles with high MPG, are very reliable, have a ‘reasonable’ cost and a good ‘value’ for the money. Consider using ‘other’ forms of transportation to help lower your cost.
The price of fuel at the pump is too high!
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Champion Author California

Joined:Oct 2008
Message Posted: Feb 24, 2012 2:46:10 AM

Barack Obama doesn't care about gas prices...he's rich and never has to worry about money you think he really gives a rip about us citizens?
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Champion Author Albany

Joined:Apr 2008
Message Posted: Feb 23, 2012 11:34:23 PM

Last time obama released oil from the SPR the price of oil an gas Went UP! This like others have pointed out is not what the SPR is for! But obama wants 4 more years to drive this country in to a third world country!
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Champion Author Ontario

Joined:Feb 2011
Message Posted: Feb 23, 2012 11:06:25 PM

I agree with Nimpy
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Champion Author Tallahassee

Joined:Jun 2008
Message Posted: Feb 23, 2012 10:53:15 PM

Right On 24541. Why not quite QE4 since QE3 seemed to drive ALL $$ higher. Can we not learn from our past experiment, unless we are trying to run US down in the ground :(
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Champion Author Rhode Island

Joined:Jan 2011
Message Posted: Feb 23, 2012 10:04:38 PM

Some observations...

Do we not yet understand the reason the SPR was created for? Did we not learn from the last time we released oil from the reserve??? This is not its purpose! While I do not advocate paying these higher prices, they are not the emergency that would justify tapping the SPR.

BurntOrange, great points made. "It makes far more sense for the Alberta oil to displace oil that the US gets from mid-East." Absolutely agree. displace Mid-Eastern supply, or better yet, Venezuelan supply.

LetemEatCake, also some great points. "...since it is a global market, US consumers pay world prices, whether the oil is domestic or imported." Absolutely true that we pay prices highly influenced by worldwide economics.

rjhenn, more great points. "Keystone XL will put Canadian crude on the world market..." Keystone likely will add volume to the world market. But, increased supply could just as likely help to knock prices back down. Much depends on supply and demand. I do have to agree with you that sending it to the East Coast would be a good thing. I'm just uncertain that arrangement could actually be made.

But tapping the SPR? Not such a great idea.
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Champion Author Indianapolis

Joined:Jul 2006
Message Posted: Feb 23, 2012 9:39:04 PM

That idea is ludicrous..................price lowering, if any, would be temporary at best. The real killer would be when the administration decided to refill the national reserve. The cost of oil at that point would be substantially higher than the price paid for the oil pulled out. As long as it won't spoil, leave it alone.............which is what govt. should do about any private program it thinks about affecting.
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Veteran Author Illinois

Joined:Sep 2006
Message Posted: Feb 23, 2012 8:55:13 PM

Obama don't care and wants the price higher like England.
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Champion Author Washington

Joined:Feb 2005
Message Posted: Feb 23, 2012 8:53:57 PM

That smell of politics, so we can save a few dollars now, what happen when we have a real need for say Iran goes off. APYI said, it it a tempory effect. i think closer to the elections.
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Champion Author Virginia

Joined:Mar 2004
Message Posted: Feb 23, 2012 8:10:40 PM

There is a very good reason the Democrat party's symbol is a jackass.
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Champion Author Oklahoma City

Joined:Mar 2008
Message Posted: Feb 23, 2012 7:53:02 PM

BurntOrange made some very good points. And points which are in the real world unlike some who are pushing Utopia or just gritching without solutions.

If you are gonna gritch.....what are your concrete, practical solutions?

Let's talk about what the President could do!

> Nationalize the Oil & Gas companies, set gas prices each morning over breakfast you would love.
> Shield oil companies from paying their fair share of taxes, thus protecting their profits, handouts and subsidies every year. (Oh wait, that is what the Republicans want!)
> Invade, thus eliminate the turmoil in the Middle East.
> Start a war, take over the nuclear program so as to eliminate tensions with Iran.
>Pay off all of the European debt.
>Magically control the earthquake and tsunami which happened in Japan, and any international weather issues to come.

Bottom line...we live in a GLOBAL economy. Conditions around the world and the price of the dollar are what dictates the price of oil. Speculators have as much to lose and they have to gain depending on future prices. Not much different than playing the commodities and stock markets.

To open up some of the Oil & Gas reserves we have, is dubious at best; as we are selling Oil overseas at a nice profit since we have lots of it! Oil prices here at home follow global oil prices... it's that simple.

If both Dems AND Repubs really want to "rock" the boat and "prove" that they are not in the pockets of big oil, END the unnecessary subsidies that benefit NO ONE but the oil companies and apply that money toward paying down the debt.

And right now to the uninformed....

Opening up offshore drilling can contribute to greater oil self-sufficiency for the US, but will not make a significant difference in prices - the potential growth in supply is a drop in the bucket against world demand that is outstripping supply - and since it is a global market, US consumers pay world prices, whether the oil is domestic or imported.

Peace......wisdom.... think for yourself.....
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Champion Author Detroit

Joined:Jan 2010
Message Posted: Feb 23, 2012 7:39:49 PM

Well that is certainly stupid, did Obama think of that or did Sec. Chu or czar Holdgren.
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Champion Author Des Moines

Joined:Aug 2005
Message Posted: Feb 23, 2012 5:50:00 PM

rodwade1 - best post so far.

BurntOrange - While true to a point, Keystone XL will put Canadian crude on the world market, which will pay a higher price for it than they're getting on the US-only market right now. That will mean that the price on the US market will go up, which will increase gas prices here. Why should we do that?

Send it to the East Coast, where they're shutting refineries down, or keep it in the Midwest and build more refineries. Sending it to the Gulf makes no sense for anyone except the oil companies.

Oh, yeah, taking oil out of the SPR makes no sense right now. We already have an oversupply. We need to regulate speculation.

[Edited by: rjhenn at 2/23/2012 5:51:35 PM EST]
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Champion Author Colorado

Joined:May 2010
Message Posted: Feb 23, 2012 5:38:04 PM

This wouldn't be wise. What if war breaks out with Iran?
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Champion Author Washington

Joined:Feb 2009
Message Posted: Feb 23, 2012 5:20:22 PM

BIG OIL & GAS love us

Is there someone that can explain to me why it would make sense to raid the Strategic Petroleum Reserve when products are being shipped out of the country for higher profits?
Isn't that rather like robbing Peter to pay Paul?

BIG OIL & GAS love us

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Champion Author Austin

Joined:Nov 2007
Message Posted: Feb 23, 2012 5:06:42 PM

Brother31 wrote:


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. "----------------------------

Sure that's me. I am a high-$ oil speculator. :)

The Keystone XL pipeline, if built, could carry about 700,000 barrels of oil per day. The US currently imports about 9 million barrels of oil per day. It would make zero sense for Canada to send oil through the US and on to China. It makes far more sense for the Alberta oil to displace oil that the US gets from mid-East.

China gets its imported oil from the mid-East and North Africa.

Look at a globe. This only makes sense.

China imports about 1/2 of the oil that the US imports, btw.
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All-Star Author Twin Cities

Joined:Apr 2006
Message Posted: Feb 23, 2012 5:05:37 PM

This is the most ridiculous plan yet by the Democrats. (Well one of them anyway)
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Champion Author Nevada

Joined:Nov 2007
Message Posted: Feb 23, 2012 4:52:51 PM

That's NOT what the strategic petroleum reserve is FOR!
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Champion Author Maryland

Joined:Apr 2008
Message Posted: Feb 23, 2012 4:39:03 PM

It is amazing, how politicians make proposals to drill more oil. The only trick is that they don't say what will be done with oil after drilling. Most assume that it will be used in the US and Canada. That is sure not guarantee. Exporting it will help some, like the wealthy and businessmen, but the buyers won't get all that much of a fell.

This is one big secret politicians like to pull to get votes when running for office.
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Champion Author Corpus Christi

Joined:Jul 2008
Message Posted: Feb 23, 2012 4:28:01 PM

Any oil released from our strategic reserves will just be refined for the export market while the big oil companies keep our fuel prices high here at home. The Republicans love it as they blame President Obama and not the greedy oil companies and their friendly speculator friends. Do you smell the smoke coming from the Republican smoke and mirror factory yet?
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Champion Author Seattle

Joined:Jun 2009
Message Posted: Feb 23, 2012 4:16:30 PM

Please review article titled

EIA: Exports rise to 3 million barrels per day, inventories now higher than last year

What am I missing
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Champion Author Provo

Joined:Sep 2010
Message Posted: Feb 23, 2012 4:08:29 PM

With the abundance of fuel in the USA nwo... We are exporting fuel to China! If we tap the reserves it will just be sold to China also! Is China in a state of emergency? the reserves are for the USA!!!
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Champion Author Boston

Joined:Aug 2008
Message Posted: Feb 23, 2012 4:08:12 PM

The Rats are desperate...they know that those AP polls showing Osama Obama to be wildly popular are complete cr*p.
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Champion Author Indianapolis

Joined:Oct 2007
Message Posted: Feb 23, 2012 4:06:47 PM

I say signing a law that barrs speculators for trading
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All-Star Author Maine

Joined:Jul 2008
Message Posted: Feb 23, 2012 4:06:19 PM

In a capitalist Utopia, you would have production without any workers to suck up any profits. Unfortunately, without workers earning wages, there is no one able to buy the goods produced. We are well on our way to this situation. If you take homes out of the equation, the top 10% of the country controls 90% of the wealth. The rich then loan this wealth back to the rest of us so that we can buy the products of our own labor. Eventually this system has to crash.
Much has been said about the paradox of thrift lately, but no matter how much of their 10% the bottom 90% spend, it won't compensate for the 90% of the savings by the 10% of the rich. Keynes believed that if the rich invested their savings, it would compensate for the loss of consumption, but it didn't work that way. When the rich invested in capital investments, it just automated factories and put more people out of work. When they invested in stocks, they created bubbles. When they loaned their excess back to us, the interest absorbed what little wealth we had and caused the system to collapse even faster.
The only solution is for all of us - rich poor and political - to recognize that no one is worth hundreds of times more than anyone else. We need to adjust compensation systems, minimum wages and the tax structure to get money into the hands of people who will use it.
We could solve our country's problems in a heartbeat if we went back to the tax structure in place during the Eisenhower administration - taxing the ultra rich 91% and spending it on infrastructure, energy and education.
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Champion Author Stockton

Joined:Oct 2005
Message Posted: Feb 23, 2012 4:04:19 PM

Whatever will help the prices go down!
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All-Star Author Long Island

Joined:Aug 2009
Message Posted: Feb 23, 2012 4:04:04 PM

hey stupid build a pipeline, they are morons, bachwards and challenged
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Champion Author Indiana

Joined:Apr 2011
Message Posted: Feb 23, 2012 4:03:31 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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Champion Author Trenton

Joined:Sep 2005
Message Posted: Feb 23, 2012 4:02:24 PM

Why won't do any good. Gas will be over $5/gal. This is what they want. So get ready to start walking.
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Champion Author Washington

Joined:May 2005
Message Posted: Feb 23, 2012 4:00:24 PM

Yesterday they said in the newspaper that there was an over abundance of fuel, that they were making more than was being used, well with the high price of fuel, I can see why this is.
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Champion Author Toledo

Joined:Mar 2006
Message Posted: Feb 23, 2012 4:00:15 PM

another stupid plan
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Champion Author Ontario

Joined:May 2011
Message Posted: Feb 23, 2012 3:58:06 PM

They would find another way to raise prices.
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Champion Author Columbus

Joined:Jun 2003
Message Posted: Feb 23, 2012 3:57:35 PM

It didn't change the gas prices the last time Obama and Europe released the reserves of oil. I guess we are going to have to build the XL pipe line from Canada.
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Champion Author Modesto

Joined:May 2006
Message Posted: Feb 23, 2012 3:55:55 PM

Soo give it a try.
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Champion Author Michigan

Joined:Jul 2007
Message Posted: Feb 23, 2012 3:54:19 PM

That would be an admission that George W. Bush was right!

[Edited by: Hobby001 at 2/23/2012 3:54:45 PM EST]
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Rookie Author Maine

Joined:Feb 2012
Message Posted: Feb 23, 2012 3:53:22 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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Champion Author North Carolina

Joined:May 2006
Message Posted: Feb 23, 2012 3:52:58 PM

Tapping the reserve is counter productive and not a real solution.
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Champion Author Orlando

Joined:May 2010
Message Posted: Feb 23, 2012 3:52:46 PM

Using the Stratigic Oil Reserve is nothing more than a feel-good proposal from the lefty crowd to try and look like they're doing something. It's the first step in their attempt to duck the fact that it's their obstruction of domestic drilling for the last many years has us in this mess.
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Champion Author Reading

Joined:Apr 2008
Message Posted: Feb 23, 2012 3:51:48 PM

They would use an "emergency" reserve for a short term price buffer - until reelected.
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Champion Author Tampa

Joined:Nov 2008
Message Posted: Feb 23, 2012 3:50:48 PM

Here we go again. Every time the gas prices go up too far, the dumb-ass Democraps start whining about releasing oil from our strategic reserve. What don't they and their whining supporters not get about the word STRATEGIC. This oil is for true emergencies. The last time they set some out it was enough to last only a couple of days. So what is the point? It is their failed policies that got us into this mess with their overblown EPA and DoE and Obama's reluctance to allow permitting of oil tracts in the Gulf , along the east and west coasts and ANWR. Whenever this comes up and we demand more oil lease be let, the tired excuse is that "it will take five years to get the oil." Well, if we would have done it under Clinton, we would have the oil today. If we would have done it under Bush we would have the oil today, and if we done it under our current idiot-in-chief, we would have it within a year. So let's get real. Leave your hands off the strategic reserve and find ways to truly get the price of gas down. Here is a suggestion, eliminate all the 45 blends of gas except one or two. That will cause an immediate price drop of over $1 per gallon according to Eric Bowles of Fox Business. Why not try it if it really an emergency, we should be able to suspend all of the EPA rules for a year or two. Tell Californians and all of the other left wing tree huggers to go screw themselves. Whew--That felt good! LOL
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Champion Author New Jersey

Joined:Sep 2005
Message Posted: Feb 23, 2012 3:49:46 PM

What good does a drop in the bucket do?
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Champion Author San Jose

Joined:Apr 2008
Message Posted: Feb 23, 2012 3:49:43 PM

according to plan - force people onto buses
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Champion Author Maryland

Joined:Jan 2011
Message Posted: Feb 23, 2012 3:48:19 PM

The situations that are raising the gas prices up and up are just nuts period!
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Champion Author New Hampshire

Joined:Sep 2005
Message Posted: Feb 23, 2012 3:48:16 PM

Of course they urge its use. Might make people think that they are doing something about the problem, when their leader, Obozo is the major contributor to the situation. We have no energy policy, thanks to them.

[Edited by: jtfftj at 2/23/2012 3:49:48 PM EST]
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Champion Author Provo

Joined:Sep 2010
Message Posted: Feb 23, 2012 3:47:46 PM

I have read numerous articles that say demand is down! the USA is now an exporter of gasoline! If we open the reserves it will just be sold to China and we will still see higher prices!
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Champion Author Pensacola

Joined:Oct 2011
Message Posted: Feb 23, 2012 3:47:37 PM

@oldhillbillyAZ, your comment "We need to fix the problem not put a band-aid on it. Problem is... Republicans vs Democrats... Looser is the American people..." is almost dead on. Except it's not "Republicans vs Democrats" it's Big Government and Big Business (aka Greedy Bastages) versus the American Citizens. But either way, we lose!!
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Champion Author Ontario

Joined:Apr 2007
Message Posted: Feb 23, 2012 3:46:29 PM

This is a laugh.

When he already did release some crude from the Strategic Petroleum Reserve people whined about it.

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Champion Author Michigan

Joined:May 2010
Message Posted: Feb 23, 2012 3:45:51 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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Champion Author Virginia Beach

Joined:Aug 2008
Message Posted: Feb 23, 2012 3:45:49 PM

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

Joined:May 2008
Message Posted: Feb 23, 2012 3:45:45 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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