Why the Hell Not? Release Oil from Strategic Reserve Bush!

[autorank]

All right, Wal Mart is reporting that their sales are down! People can't afford to shop because of the sudden gas price increase.

There's a simple solution--release oil from the strategic reserve. Clinton did it and the oil creeps backed off. That's what they need to see is "push back."

What's Bush waiting for?

This should be a huge issue shortly. Let your local, state and federal representatives know we've had enough.

Economy Sputters as Gas Keeps Rising

Chris Woodyard August 17, 2005

Gasoline prices marched higher Tuesday, pushing AAA's national average past $2.50 for the first time, while experts are split in their predictions about when they might recede.

The impact from soaring gas and diesel fuel prices reverberated through the economy:

*The Labor Department reported that the consumer price index rose 0.5% in July. A 6.1% increase in oil-based energy costs accounted for half of the increase.

Blagojevich urges president to release oil from strategic reserve
Aug.17, 2005
SPRINGFIELD, Ill. (AP) — Gov. Rod Blagojevich called Wednesday for the president to release oil from the nation's Strategic Petroleum Reserve to help fight skyrocketing gasoline prices.

``Withdrawing oil from the reserve will increase the supply, which will lead to lower prices and provide relief to consumers,'' the Democratic governor said in a statement.

[lostinacause]

1. Releasing oil reserves will only provide a temporary price reduction

[Gabi Hayes]

4. and, then, when they replenish, what do you think will happen to

prices?

[lostinacause]

9. Is this a trick question?

The price would go up as oil would be taken out of the market as is necessary to replenish strategic reserves.

[Gabi Hayes]

19. no trick! just an addendum to your pertinent point

just a temporary fix

if we'd stuck to Carter's CAFE standards of 28 years ago, we'd be paying about as much attention to Saddam Hussein (still in power) as we do to Burkina Faso

[autorank]

22. You're right about Carter. The man had vision and intellect.

What a wasted opportunity. The Department of Energy goes from seeking independence to an industry trough.

[autorank]

12. Look at what Clinton did!

[autorank]

11. That's right. Who said it would be permanent. It modifies behavior.

If they know we'll use this, then they'll think first before fooling around. That's what Clinton did. They know they were in a serious poker game. With Bush, it's three card montey and we're the chumps.

[lostinacause]

32. America does not have the "hand" that it did before. Certain trends

such as increasing consumption elsewhere and the continued threat of global instability would make it so that it would be best to wait.

[Pepperbelly]

23. bullshit ...

release reserves while simultaneously announcing a major investigation into price collusion and gouging and watch the damned things tumble.

[lostinacause]

31. You forget that America's level of oil production is so small that

collusion is pointless especially given that they have OPEC to do the colluding for them. When OPEC is keeping the price high (by keeping supply down) there is no incentive for American companies to do the same. All they have to do is take the free ride off of the artificially high prices.

If it becomes a witch hunt you end up having serious long term economic consequences similar to those of corrupt nations.

[Pepperbelly]

34. double bullshit ...

Look at who is profiting from the oil. If what this was about was American production, you might have a point but that isn't what this is about. There is no oil shortage. I lived through oil shortages and I have not seen a single solitary service station with a "No Gas" sign up. The run up in price is due primarily to speculation.

If you believe that the oil companies ... the Shells, the Exons, the BPs, are merely passing along the increased costs pbl then you are sadly mistaken. If they were merely passing along the cost, their profits would remain basically flat but that is not what is occurring. Their profits are skyrocketing from 40% on up. They are cash drunk with the money, so much that they don't even know what to do with it.

They are gouging the living shit out of us and that is a fact.

[lostinacause]

36. Was there a price ceiling when the shortages occurred by any chance?

Shortages are cause by prices being kept to low for the given demand. There are more people interested in buying then there are in selling at a particular price. Ceiling prices (maximum prices legislated on a good) typically cause this. The result is lineups and shortages. A few other things can sometimes happen but they are irrelevant in this discussion.

Regardless increased demand or decreased supply does not typically cause a shortage.

Regardless, I don't believe I have either said or implied that there was a shortage in oil.

[Pepperbelly]

38. then do you believe that the oil companies are

gouging and fixing prices or do you believe something else? I do not want to put words in your mouth.

[lostinacause]

39. I have not seen an indication that they are doing such a thing. All of

their behavior and the behavior of prices draws me to the conclusion that it is just part of market activities.

You can go to my blog: http://possiblylogical.com/blog it should be one of the first two articles.

[Pepperbelly]

40. Hello! Wake up, friend ...

Profits are no up more than 40% because they are selling 40% more fuel. It is not up because they are merely passing along the cost. There is only one reason they could reflect such astounding growths in PROFIT, not revenue, please not. They are experiencing that PROFIT growth because they are gouging and price fixing.

Vagaries in the marketplace is so vague as to be meaningless. If you can find an actual economic flaw in my argument, please tell me because so far, I am left unconvinced.

[lostinacause]

37. You are putting words into my mouth that I never said.

I am just about done an entry about the oil market misperceptions. I will check the forum rules and link if it is allowed I will post the link. If not I will message you the link or quote relevant parts.

[Old and In the Way]

2. How long before that is privitized?

You know the Republican drill, sell it to Enron and Exxon/Mobil at $5.00/BBL.....

[European Socialist]

3. Waiting for Iran attack, when prices will go crazy.

[autorank]

14. I think you found one rationale for even threatening such an attack.

They don't even have to do it to push prices up, just look like they're really serious. Great point.

[jayfish]

15. I Wonder What Would Happen If * Came Out And Said...

"any military option in dealing with Iran is off the table"? :shrug:

Jay

[autorank]

21. "Couldn't do that, wouldn't be prudent" I wonder too.

How about if he came out and said God talked to him recently and said that Jesus was the "Prince of Peace" and that "Onward Christian Soldiers" was really a metaphoric English church ballad. Bush could claim an ephipheny...then announce "I'm for peaceful resolution of all international disputes. To believe otherwise is insane and portends nothing but sadness and suffering eternal. Damn, what did they put in our coffee?
:rofl:

[havocmom]

5. b*sh does not serve the nation, he serves the corporations,

and Cheney serves oily corporations above all. They will not compete against their masters. ::Think of b*sh flipping of the country, cuz that is the only honest thing he has doen::

[Pepperbelly]

24. hell, it makes his family richer ...

the dirty rat-bastard. He'd rather do anything than end the high prices and the gouging.

[RaleighNCDUer]

6. Can't do that. Wouldn't be prudent

with the coming war with Iran, after all.

[napi21]

7. Don't you realize contributing to the oil reserve is part the cause of

the higher prices???? Months ago, when I kept reading about Shrub insisting the US continue to add lots to the oil reserves, I asked WHY WOULD YOU DO THAT WHEN THE PRICES ARE SO HIGH????

Buing for the reserves is part of what increased aparent demand thus increasing prices!

Shrub sure isn't going to take any out NOW!

[autorank]

20. You're right on target.

His level of buying was an area of concern. Of course CM (corporate media)will never mention this. And you're right, he won't sell any now but he needs to be called on this. What a clown.

[TheDebbieDee]

8. Supposedly, releasing reserves won't do any good.......

because there isn't an oil shortage.

However, all the refineries are already operating at maximum capacity, there is no way that the Big Oil Companies can refine the crude oil any faster. At least, that's the impression that Big Oil makes.

[autorank]

13. It's always a refining bottle neck.

I went through the big one in the 70's...oh, it's the refineries. Then they say, oh, we'd have more of refining facilities but the environmentalists always get in the way. Lies and the lying liars that tell them is what I say about anything I hear from Big Oil.

Be great if we had reporters instead of stenographers.

[louis-t]

17. Oil companies don't want to invest

in refineries. I've heard it is not profitable. Also, refining more gas would bring the price down. Now who would want that to happen? Teacher's out of the room folks, oil companies will own the planet soon.

[Pepperbelly]

26. that's because they're gouging us silly and no one will stop it.

They lie because it makes them more money. Their NET profits are up 100% this year.

[bluedog]

10. take all the profits

and build a refinery.......whats the problem with that...there has to be cleaner ways.after 30 years.one would think they came up with something...the oil companies are the ones gouging the public..and bush sits idly by.....our congressmen and women have to get involved in this problem.when it comes to putting food on the table or gas in the car.thats a hell of a choice.........and all our lost money in Iraq?.accountibility.....we should DEMAND it!

[whistle]

16. Can't do that because the military needs that reserve to wage....

...other wars around the world including Iran, Syria, Jordan and North Korea and possibly even Venezuela! The reserve represents 700 million barrels of crude oil which would last about 120 days under aggressive attack conditions.

[theboss]

18. There's no oil shortage

Though, apparently, we are looking into the possibility of one to see if that helps.

The real problem is that speculators are playing a very dangerous game with the price of oil at the moment.

[Pepperbelly]

27. what need is a serious DOJ investigation into price gouging ...

because that is exactly what they are doing.

[jim3775]

25. Gotta save that oil for the Iran war. n/t

[Tyranny_R_US]

28. Why doesnt anyone think of the oil companies...

They have to make money (most they will never see or use) you know!

[autorank]

29. Hug an Oil Rig, today, let them know you care.

It's your duty!
:patriot:

[Tyranny_R_US]

30. *hehehe*

:rofl:

[Booster]

33. C'mon. That reserve belongs to Cheney so don't even think about it.

[B Calm]

35. If they released it just to bring down the truckers fuel it would help

the economy