Senator: Halt expansion of oil reserves (Dorgan)

[babylonsister]

http://news.yahoo.com/s/ap/20070618/ap_on_go_co/congress_oil_reserves;_ylt=Ashg1tQk_Y56cqfQ70tpiYDMWM0F

Senator: Halt expansion of oil reserves

By MARY CLARE JALONICK, Associated Press Writer Mon Jun 18, 7:30 PM ET

WASHINGTON - A Senate Democrat is aiming to halt expansion of the country's oil reserves for one year, saying it makes no sense when oil prices are high.

North Dakota Sen. Byron Dorgan (news, bio, voting record) said he will include the proposal as part of an energy and water spending bill to be considered next week.

The Strategic Petroleum Reserve now contains 690 million barrels of oil and has a capacity of 727 million barrels. The energy law signed by President Bush in 2005 directs the government to expand that capacity to 1 billion barrels, and Bush has requested $168 million in the next budget year to begin that expansion.

Bush has proposed expanding the reserve even more, calling for a reserve that can hold 1.5 billion barrels and is filled by 2027.

Dorgan, chairman of the subcommittee that will consider the bill, said the legislation would pause all plans for expansion during the 2008 budget year. It would also temporarily prevent the department from replacing crude oil released after Hurricane Katrina struck two years ago.


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[ThomWV]

1. Dorgan is dead ass wrong on this one

And no good reason for his opposition to expanding the SPR is given in the article.

[originalpckelly]

2. Supply and demand. The more oil that's taken off the market for the reserves...

The more the supply will not meet demand, and will cause the price to go up. I wouldn't be surprised if Cheney isn't somehow behind this so that he can help his little oil buddies.

[ringtailtooter]

3. It makes sense in the context of economics

Why buy excess oil at high prices just to put in reserve, especially if what is in reserve is sufficient? We buy all of our oil from out of country. The oil we produce domestically we sell to Asia, a little known fact not readily shared by the government.
http://blogcritics.org/archives/2005/04/06/130522.php

[Blaze Diem]

4. ..true and another bit I was told yesterday by a friend debating

whether he should make a risky but quick return investment...

In regards to the GOP whine about no refineries.

Truth is, none will be built as long as we can import gasoline cheap and resell it high. (profits dictate)
The particular investment my friend is considering pertains to the "transportation" part of importing of gasoline.
Quick in-quick out-lots of $ to be made- & no protection if lost.

As long as there is money to be made, there will be no bother to build new refineries.
This kind of mentality makes the US very vulnerable, indeed, but the profits b eing made at the moment are too good to bother taking a more visionary stand.
Fits the M.O. of the entire Bush purpose.