Despite the opposition of the current Administration to more drilling in the US, he's going to release oil to the market from the Strategic Petroleum Reserve.
I don't get it.
More oil equals lower prices for fuels like gas and diesel. But he won't let new supplies to be created, instead pushing ale, biofuels and ethanol.
While I am all for development of alternative fuels(albeit not
The logic of his move with the Strategic Reserve escapes me....unless it is just a campaign stunt. And if more oil in the market is a good thing, then lets get serious about it and develop new sources in our own turf.
Price stabilization is not the intended use of the Strategic Reserve.
And you can BET MONEY, he'll release more of the SPR just prior to the election to drive prices down...
ReplyDeleteTrue, that's not the purpose of the SPR, or of any of the other reserves we have set aside.
ReplyDeleteBut, it is the only use ever made of it.
Yep the Golfer In Chief will use it late in the Summer to drive down prices and help his re-election. Of course I think all we have left is a 36 day supply since he used a butt load of it a few years ago. It maynot help enough at this point let alone in another few months.
ReplyDeleteOf course it's a campaign stunt. He told us the price of energy would shoot up when he got in office. Now he's realizing that he can't get re-elected in a world of $6 oil, so this is a temporary reprieve. You can bet that if he's re-elected he'll shut off the SPR pretty damned quickly.
ReplyDeleteIs not misuse of government resources for personal (political) gain a high crime or misdemeanor?
ReplyDeleteDoes it matter since dems control the senate?