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View Diary: Obama administration to release oil from strategic petroleum reserve (96 comments)

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  •  this won't make gas cheaper (3+ / 0-)
    Recommended by:
    Pozzo, AnnieR, phonegery

    It seems to be going down on it's own. It seems more symbolic like the Adm is trying at least.

    •  this will make gas cheaper (10+ / 0-)

      at least in the short term.

      I view it as good timing, since oil and gas prices have been slowly falling, this will give them a little shove.

      If gas can get back down to ~$3, it will greatly help the economy pick up.    

      •  It will also help Mr. Obama get votes. (2+ / 0-)
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        hmi, Jerry056
      •  the Overton window passing before our eyes (3+ / 0-)
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        phonegery, midnight lurker, Jeff Y

        There's no practical reason why this should improve gas prices: we've known (or at least been told) for quite some time that supply isn't the issue (and didn't OPEC say that just a few months ago, too?)--refineries aren't working at full capacity now for any number of reasons.

        But if supply isn't the issue (and I don't think it is; I think it's speculation unrelated to supply shortages), why would adding to the supply impact prices? Yes, it may--but only to get us used to the idea that high prices = "must drill" situations (so we won't tap into the "emergency" reserves). Drill, baby, drill ... knock the tops off mountains, kill off a few caribou ...

         I guess I'm not at all convinced that speculators will throw their ball gloves on the ground and stomp on them before picking up their toys and going home to pout over their suddenly-missing future profits; my feeling is it's more about the perception of a supply shortage that can be "solved" by digging/drilling and an effort to roll back those restrictions. In that case, there's no link between prices and output and prices will continue to rise as long as we continue to provide demand.

        Just my 2 cents.

        •  Of Course It Is Speculation (1+ / 0-)
          Recommended by:
          Jeff Y

          First, for perspective:
          1) Obama proposes to release 30 million barrels of oil over some period of time.
          2) U.S. consumption of oil is about 18-20 million barrels per day.
          3) World consumption of oil is about 100-110 million barrels per day.
          4) The oil presently in the Strategic Reserve cost less than the oil that will have to be purchased to replace it.

          If the delivered price of petroleum products goes down in response to the release, it has nothing to do with supply-and-demand.  It could just as well go up.

          Allowing speculators to play their games should not be a strategic objective of the U.S. Government.

          "Facts are meaningless. You could use facts to prove anything even remotely true." -- H. Simpson

          by midnight lurker on Thu Jun 23, 2011 at 11:02:17 AM PDT

          [ Parent ]

    •  pure politics (4+ / 0-)
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      hmi, phonegery, WillR, Jeff Y

      As you say, the prices are already going down.. so how can the Obama admin take credit for it?  Release the oil!

      Ok.. maybe that's a bit cynical, even for me.  But I see no real world reason to do so.  That's 2 1/2 days worth of imported oil.  And everyone's been crying there is no shortage anyway!

      •  Sure it is. the GOP is doing everything they (8+ / 0-)
        Recommended by:
        TomFromNJ, jalenth, AnnieR, GMFORD, askew, sja, Matt Z, Jeff Y

        can to subvert the economy.

        'Bout time the Obama Admin starts doing everything it can to get it juiced.

        Hopefully more of these little things to come. Like spending money on projects to get Americans back to work.

        Notice: This Comment © 2011 ROGNM

        by ROGNM on Thu Jun 23, 2011 at 07:54:21 AM PDT

        [ Parent ]

      •  And not just American politics (3+ / 0-)
        Recommended by:
        midnight lurker, Victor Laslo, Jeff Y

        Seems like Saudi Arabia might have a hand in this, too... at least if this article from yesterday is to be believed.

        Today the Wall Street Journal has a fascinating piece describing a speech given this month by Saudi Prince Turki Al-Faisal. The prince, speaking to a group of U.S. and British servicemen at an airbase near London, explained that Saudi Arabia was so concerned about Iran's continued march toward attaining nuclear weapons that it was considering opening its oil spigots and swamping the world with oil in the interest of gutting Tehran's government revenue

        But don't forget that most men without property would rather protect the possibility of becoming rich, than face the reality of being poor. (1776)

        by banjolele on Thu Jun 23, 2011 at 08:52:58 AM PDT

        [ Parent ]

        •  wow.. (1+ / 0-)
          Recommended by:
          Jeff Y

          Maybe they can just hire Israel  to take care of things.. funny how 5 Russian nuclear scientists that were helping Iran died "accidentally" in a plane crash recently.  But, accidents do happen!

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