US Senate Democrats eye 40 mln bbl gasoline reserve

[sabra]

http://www.alertnet.org/thenews/newsdesk/N29218198.htm

US Senate Democrats eye 40 mln bbl gasoline reserve

WASHINGTON, Sept 29 (Reuters) - U.S. Senate Democrats on Thursday proposed creating a 40-million-barrel gasoline stockpile to ward off price shocks from future hurricanes and other disasters.

A bill backed by Dick Durbin of Illinois and Chuck Schumer of New York would establish a fuel reserve with up to 40 million barrels of unleaded gasoline and 7.5 million barrels of jet fuel. It would cost about $2.5 billion to fill such a reserve based on year-to-date average U.S. spot market prices, Democratic aides said.

The United States already has the nearly 700-million-barrel Strategic Petroleum Reserve for crude oil, which the Bush administration recently tapped to help refiners short of supply after Hurricane Katrina hit the Gulf Coast.

But the benefits of crude oil reserves are limited when hurricanes flood or damage U.S. refineries, crimping their ability to churn crude oil into gasoline and other refined products.

[tompayne1]

1. SHame

The Republicans will try to kill it as soon as possible.

[joeunderdog]

2. Buy gas when it's $3/gallon?

This will add demand, increase price and patronize the oil industry who should be getting spanked for creating this mess.

This is not a solution. Taxing ridiculous profits might help to fund such a plan if it had to be implemented.

This whole gas thing's a hoax, just like the California Brownouts.

[meow2u3]

12. Taxing windfall profits on oil doesn't go far enough

We should put in a windfall profits tax on all corporations, especially those who ship our jobs to India, China, and other countries that use cheap labor so the CEO's and shareholders can make a killing by killing others.

[sarcasmo]

3. I agree fully with comparing this madness to the brownouts.

Ten years from now we will learn that Exxon and other oil giants drove up the price for higher profits. FYI, a gas clerk told me that gas was going up to 3.10 from 2.84 today.

[Strelnikov_]

5. Very Close. They Have Shut Down Refineries Over The Years

so utilization was near 100%, thus driving up prices.

Just like the Cali electric plants conducting maintenance during peak demand periods to restrict supply and thus drive up prices.

[Strelnikov_]

4. Won't Work. Gasoline Has A Limited Shelf Life

Better solution would be legislation mandating 15% excess refining capacity, so the 700 Mbbl SPR could be utilized in an emergency.

Key points of the legislation:
- Mandate 15% industry wide excess capacity.
- Mandate this extra capacity be distributed geographically to preclude concentrations that have led to the current problems.
- Mandate that all refined products sold in the US be produced in the US. Only product that does not exceed the 15% excess capacity could be sold outside the US by US based refineries.
- Compensate companies for building the excess capacity. Future cost of maintaining the capacity will be their responsibility.
- Amend NAFTA as required to make the above requirements consistent across a 'North American Energy Compact'.

On Edit: May have to have a nationwide adjustment (subsidy) to compenstate for mandated facilities operating in more costly areas. The accounting for this should not be difficult.

On further edit: Peak oil should provide this excess refinery capacity in a few years anyway.

[orwell]

6. This is...

...a bad idea. The current gas price "problem" is due far more to speculation on the NY Merc and refinery capacity than it is to crude oil availablility.

Why don't they put this money into alternative energy research or energy efficiency research. They will get far more bang for the buck over the long term.

Just as important, impose higher CAFE standards on the US auto industry. That is a no-brainer.

Does anybody from either party have a clue in Washington?

[Strelnikov_]

7. Agree Fully. Instead Of Searching For A Cheaper Pusher

we just need to kick the habit.

[jpak]

11. There was NO gasoline for over a week in the FL Panhandle due to Katrina

or diesel for that matter.

and food was disappearing off the shelf.

I walked into my local grocery 5 days after Katrina and there was NO produce and a lot of empty spaces on the shelves...

We were just damned lucky that Rita didn't come our way - mass evacuation would have been impossible, and evacuation routes would have been parking lots (worse than Houston).

A "flow through" gas, aviation fuel, and diesel reserve (where "old" fuel was replaced with fresh fuel on timely basis) could prevent this from happening.

I'm all for it.

[tainowarrior]

8. WRONG POLICY

Stop filling up reserves. The solution is not spending 2.5 billion on stockpiling reserves. The solution is spending those 2.5 billion (and any other needed) in developing an abundant, renwable, just as effective fuel. If Hydrogen is effective (I'm not sure it is), spend the money on mass-producing it and building the hydrogen pump infrastructure throughout the nation for these cars. If biodiesel is the way, spend the money on eliminating oil based diesel and mandating biodiesel (like Minnesota did).

OIL IS NOT THE ANSWER.

[hogwyld]

9. What type?

Suppose they actually try to go ahead with this. What formulation do you stockpile? California gas is different than Texas gas which is different than New York gas. Besides that, gas has a finite shelf life before becoming useless. Besides, who wants to bury 40 million gallons of gas in their backyard?

[ConcernedCanuk]

10. Who needs 40M gallons of gas in der backyard - anyone with a HUMMER!

.
.
.

and in response to other posters questioning the viability of storage

Ethanol

even E15 keeps for years

and many cars now can run on E85 - 85% Ethanol - much longer "shelf" life -

but them Hummers would hafta stay parked

aww gee . . .

:evilgrin:

[Demonaut]

13. although crude oil obviously has no shelf life I've been told refined

products like petrol have a definite shelf life