Double the current capacity of strategic oil reserves? Why does that

[babylonsister]

sound like it just might fill more pockets?

[Warpy]

1. The strategic oil reserve is already full to bursting

and this administration was buying up oil to fill it at the peak price.

They can only want to double it because they expect offshore oil supply to be interrupted while they start more wars they can't finish.

[babylonsister]

2. Thank you, Warpy. That's what I thought; not good. nt

[ProfessorGAC]

12. Or, They Can Fend Off The Complete. . .

. . .marginalization of their party by releasing it a little a time in a year, to control prices and prevent that little inconvenience from being the final nail.
The Professor

[kurtyboy]

3. The throw-away manner of delivery just scared Hell outta me

He wants to DOUBLE the strategic reserve. When was the last time somebody decided to double it? I don't know, but I'd bet a dozen Yugos that it has never happened--

Not before Libya
Not before Grenada
Not before Panama
Not before Gulf I
Not when Russia had a coup
Not before Kosovo
Not when the Intifada got rolling
Not when China knocked down our warplane
Not for Afghanistan
And not for piddling little IRAQ

Only now, when we're rattling sabres at Iran, and China is doing live tests of anti-satellite missiles, and North Korea is testing live nukes, and the House of Saud summons the Dickster to their digs to explain that they're behind the Sunnis, and we've picked a Shia government for Iraq.

Only now, when the President warns that FAILURE in Iraq will mean a regional mega-conflagration in the oil-production zone, and we all know that failure is an inevitability...

He sounds like a guy planning for a long, ugly war across many theaters.

But I understate---------

[babylonsister]

5. Kick for someone to make sense of this, because I can't. nt

[rhiannon55]

4. I wondered about that, too

As usual, he doesn't say HOW or even really WHY he would want to do that, he just promises to do it. What does "double the current capacity of strategic oil reserves mean", actually? It's probably just an empty phrase to him, written for his base or for people who are only half listening. Makes him sound like he's doing something important.

[babylonsister]

6. We need a recommend to see if anyone has any clues. nt

[Theres-a]

10. K & R

What is he up to.......that bastard.

[babylonsister]

7. Waaaa! I really want to know how legit this is. nt

[mtnester]

8. The minute he said that, I turned to hubby and said

so I wonder how many seconds it will take for the price of oil to start going up?

What I was shocked about was that even though he was harping on oil and getting it through environmentally friendly methods, he steered absolutely clear from drilling in the Arctic circle, which for several minutes I expected him to say.

[babylonsister]

9. And he's talking out of both sides of his mouth! Brings up diversifying

our energy sources and then wants to double our reserves? I wonder how this will fly once the dust settles.

[Javaman]

11. Don't you all see what's going on?

All arrows point to bombing Iran. Doubling the oil reserves will do nothing for us but will sustain the military. He's* asking us to voluntarily cut our gas by 20%.

If things are going to so well with the economy as the failure* states, why then is the cut back and the boosting of the reserves?

As soon as the first bomb lands in Iran, the price of oil is going to sky rocket. Then he will come out with some sort of bullshit excuse followed by, "I asked for the nation to do a voluntary 20% cut but now it's going to become law".

Then the cards come tumbling down.

[MadHound]

13. You're correct in your suspicions

This is all about more oil profits for Bushboy's oily buddies. Why this move right now? Because due to a fairly mild winter, there is much less demand for oil. Thus the market price for oil has dropped significantly since last summer, to $55/bbl down from $70+/bbl. Another reason there is less demand is that people were starting to feel the pinch at the pump and parking their SUV's in favor of more fuel efficient vehicles.

This doubling of the SOR will boost demand back up for awhile, thus pushing the price at the pump back up, and lining the oil exec's pockets some more. This doubling will keep the price high until the next convient excuse for gas hikes come, the ever popular "summer driving season".

[TZ]

14. Isn't that a coincidence..

since I just heard predictions of gas possibly dipping under $2 a gallon soon. Guess we gotta put a stop to that:sarcasm: :grr:

[raccoon]

15. Well, gas prices are just too low for the liking of the oil oligopoly. nt

[Ganja Ninja]

16. He's propping up the sagging price of oil on the world market.

Oh by the way, the price of oil went up $5 a barrel yesterday BEFORE he he gave his speech.

[muriel_volestrangler]

17. There was an announcement before the SOTU speech

Oil prices have climbed by more than 4% on news the US plans to boost its emergency stockpile.

US light, sweet crude rose $2.48 to $55.04 in New York, while in London, Brent crude added $2.40 to $55.10.

Energy secretary Sam Bodman said the government intended to increase its take-up of oil by 100,000 barrels per day in the Spring.

The news added to prices already buoyed by cold weather in the US increasing demand for heating oil.

http://news.bbc.co.uk/1/hi/business/6292081.stm

[Ganja Ninja]

18. I stand corrected.

The radio said oil went up 5% and I confused it with $5. I never actually checked the price.

[TZ]

20. don't worry, it surely will be up at least $5 soon n/t

[GreenZoneLT]

19. Eh. It's got an upside.

Higher oil prices means bigger profits for oil companies, but it also means more investment in alternative fuels and other energy technology. I'm for anything that keeps the price of oil above $50 a barrel, because price pressure is the only thing that's ever going to lead us to use less of it.

[Ganja Ninja]

21. I'd rather they tax it then let speculators have the money. n/t

[ThomWV]

23. Actually taxes never get paid on the oil in the SPRO

And the Government gives no cast to the oil companies either. Oil is traded for tax credits and then the oil is dumped in the ground. Now and then they have "test sales" from the SPRO, but those are one of the worlds finest jokes. When one takes place what the Government is doing is testing its own ability to sell things - something like you selling a pair of socks on E-Bay just to see if you can do it.

[ThomWV]

22. Filling The SPRO Since 2000 Contributed Greatly To The Increase In Gas Prices

It was estimated in the early 2000's that one third of the increase on the price of gas in the country could be attributed to Bush buying oil like crazy to fill the reserve. So when that gas price went from $1.00 to $3.00 about one third of the two-dollar increase, roughly $0.66 came from filling the reserve. The oil company executives call that "gravy". Bush wants to do it again.