Join the Discussion

Comments So Far: 8

• 75%

  SonOfTheMask2 months ago

  FTA: "However, experts warn that, with less sweet oil in the reserve, it may be more difficult for the United States to counter a major disruption in petroleum supplies, like the one caused by Hurricane Katrina. Or that could happen if a big foreign oil supplier cut off shipments to the U.S. market."

  Reply
• 75%

  SonOfTheMask2 months ago

  FTA: "The experts questioned whether there was even a need to tap the reserve, given that supplies are plentiful and gasoline demand is down due to higher fuel prices and a weak economy."

  Reply
• 75%

  Klarissa2 months ago

  Carter allowed the reserve to drop down. The oil rich regions saw an opportunity to raise prices, and we had rationing.
  
  Using reserves would be lowering prices for a short time (probably until November lol)then they would go up and up.
  
  Approve drilling and production from already drilled wells that aren't allowed to produce and the price will drop even before there is more oil in production.
  
  Plus, the reserve should be saved for emergencies, not lack of planning.

  Reply

  1 Reply

  • 50%

    ind062 months ago

    The Gas Crunch due to OPEC raising prices and Iran totally embargoing America happened in the Summer of 1979.
    Jimmy Carter called for the use of some of the SR in 1980.
    Using the SR did not cause the crisis, it was a result of the crisis.
    And if the 1979 Gas Crunch wasn't an emergency then I really don't know what was.

    Reply
• 50%

  nostalgia2 months ago

  "Obama would require oil companies taking the 70 million barrels of expensive sweet crude to replace them with more barrels of heavy, sour oil, because light, sweet oil is worth more. So the government would get more sour crude for every barrel of sweet it swapped, boosting the size of the reserve."
  And what does Obama plan to do if a major hurricane damages a significant number of oil rigs in the Gulf of Mexico?
  The sour crude can only be refined in a few refineries.
  Does he even bother to consider the possible consequences of his plans?

  Reply
• 50%

  ind062 months ago

  You know, the reserve isn't like the principle of an investment. You don't touch the principle because it lowers your interest. But what exactly is the POINT of having a strategic reserve if one is never to use it...er, strategically?

  Reply

  1 Reply

  • 100%

    SonOfTheMask2 months ago

    I think the experts are saying that there isn't a strategic use here...that Obama's plan is simply a play to affect price when there isn't an actual shortage. And, that if we move 25% of the strategic reserve's sweet light crude to refineries now, what happens if there is an actual shortage, either from natural disaster or because a major supplier curtails deliveries.

    Reply
• 0%

  Wolfie20072 months ago

  So how would using the Strategic Oil Reserves make the United States more energy independent? Drilling could.

  Reply