E-mail updates
Follow on Twitter
Subscribe to RSS
A sign of things to come from the Obama White House?
Austan Goolsbee, who served as one of President Obama's top economic advisers, writes in the Wall Street Journal that it's time to tap into the Strategic Petroleum Reserve -- which would boost oil supply and thus potentially drive down oil prices.
Part of Goolsbee's case is that there's too much oil in the reserve.
Domestic production hit record levels in 2011, at about 9.5 million barrels per day. According to the Energy Information Administration, oil imports have dropped by more than 20% since 2006 -- and imports from sources outside of North America (that is, from Canada and Mexico) are down 30%, to fewer than seven million barrels per day.
Yet despite the decreasing strategic need, we have filled the Strategic Petroleum Reserve to historic levels. During the first 30 years or so of the reserve's existence, its volume averaged fewer than 550 million barrels -- 75% of capacity. It is now at almost 700 million barrels or 96% of capacity (and was at 100% before the release last summer). In 2005, Congress authorized more capacity, to enable the reserve to reach one billion barrels.
And Goolsbee also says that tapping into the reserve -- at current oil prices -- would bring billions in the U.S. Treasury.
Keeping the extra oil in the Strategic Petroleum Reserve is a form of insurance policy and so it isn't free. If we reduced the reserve to 510 million barrels from 696 million barrels, the sales would bring in more than $20 billion to the Treasury. Are taxpayers really getting $20 billion worth of value from having an extra 25 days worth of those oil imports sitting in a salt mine in Louisiana?
Leave a Comment:
I couldn't agree, tap the reserves...
When gas prices begin to fall, then the RWNJ's will have absolutly NOTHING to run on...
Economy improving + fuel prices dropping = Willard running out of steam! ;o)
Sure, tap the reserves. Once the American people realize that it will do nothing to affect gas prices, they will still blame Obama (and rightly so) for the high prices.
We should be taking advantage of high oil prices by nationalizing our oil on public lands. All those extra profits would go to pay off our debt rather than in the pockets of Big Oil.
Mr. Goolsbee is right. It's time to tap the reserves. The economy needs the boost. We are finally headed in the right direction and cannot afford to drop the ball. We have the capability, and other presidents have done it. Lots of folks forget that it can be replenished. What we really need is to get off of oil entirely, and someday technology will allow this. For the sake of all Americans, tap it!
World (western) leaders are worried about a war with Iran and want to hold off as long as possible to tap the reserve. Besides, it is only whiney Americans complaining. Rest of the world pays a lot more for gas.
If the reserves are tapped, how will the 'green energy' program survive? We won't need to run out and buy that Government Motors Volt!
Seriously, this won' accomplish much for the long term. Obama needs to go out and attack the oil producing states, not us. LOL.
Yeah, that's the ticket - do more genuflecting and let my SUV be.
But then again, didn't this administration state that higher gas prices is now the new norm? Doesn't have a plan for gas reductions, does he? And to think, Bush is probably the blame.
Austin Goolsbee, that guy is always on it. Pop the top on that reserve and blow the futures speculators out of the water. Let oil settle to $70/ barrel and the economy gets another boost. The President is probably going to save this for either the fourth of July or more likely around the sweet spot of Labor Day. Then,"R's", whatcha', whatcha', whatcha' gonna' do?
Goolsbee is something else, alright; He and Jon Corzine are the brains behind the worst economic record since Hoover.
Yeah, tap the Strategic Oil Reserve .... after all, Democrats have a strategy to try and make Obama look good so he can be re-elected ! The "reasoning" behind this is just smoke to cover up the real purpose .... bailing out the incompetent one whose anti-energy policies have put us in this bind !
Shutting down deep gulf oil platforms is having an effect and that flaming GM Volt is not the answer.
Bush tapped deep into the strategic oil reserves during his administration, but I am positive the right wing lunatic fringe will whine and snivel if and when President Obama taps into it. Hypocrisy is the hallmark of the GOP, after all, isn't it?
Bush tapped into the strategic oil reserves in the wake of hurricane Katrina ..... a major disaster that caused severe disruption to oil refineries along the Texas and Louisiana gulf.
Obama is tapping in to the reserves because HE IS A DISASTER unto himself, and his energy policies are about as frivolous as a dandelion bloom blowing in the wind.
Hypocrisy is Obama talking about increasing drilling while permits are not being released. Hypocrisy is about shutting down the Keystone pipeline and then releasing reserves when the election is on the horizon and his popularity is "tanking" yet again. Hypocrisy is about a President who wants our energy prices to rise to levels like that of Europe.
Hypocrisy is then claiming he has no control over gasoline prices. Hypocrisy is about a President wanting to remove so-called "subsidies" in the name of "fairness", when the result will only be rising prices for the consumers at the pump.
The rookie-in-chief has no cohesive energy policy, he has knee jerk reactions to polls !
Damn fiesty did lose your talking points, the price increase is not due to amount of oil available, we are drilling at record levels. It is not wonder boys problem remember. Get off your fat ass and walk around, get some blood flowing to your pea brain, and stay on your talking points please how or else you might start making sense, not. *popcorn* get off your fat ass and get your own : )
Bob Jones University, hows that Iraqi Oil coming along Now. It's Not You Say, well Kiss My Grits!
7 Million Barrels a day coming from Iraq before Bush/Cheneys SandBox games. As of today, Only back to 3,500,000 Barrels a day, & no doubt, most of it going to China & India.
Why don't You get Off your FatA$$ & Pray that Iraq does get back upto 7 Million Barrels a day, & SOON!
Occupy SoggyBottom!
I read somewhere that the president has been talking with the British PM and several other western leaders about opening up the reserve (btw, Saudi did say they are willing to increase production). They have been holding off - maybe worried about a war with Iran?
Perhaps the Saudis realize Obama is incompetent and do not want to aid his chances at re-election.
In order for the Republican party to reenter the mainstream of American politics, it needs to be crushed in the upcoming election. Unfortunately, Romney will likely gain enough electoral votes to prevent more moderate Republicans from retaking control of the GOP. We will thus be subjected to four more years of truly radical right wing folks attempting to, e.g., further punish the poor, benefit the very wealthy and eliminate the separation of church and state. We will likely also remain at a statemate on the key economic issues. The Tea Party and its ilk would find even Richard Nixon to be a left winger. I fear for our country.
2010 all over again.
It's going to happen but it's all in a strategy of what does Iran do or not do to cause a war in there country. As you can see as speculation about the FED not doing QE3 has caused a dip in oil prices from 110 a barrel to 102 a barrel in less then two weeks. Now imagine if we tap the oil reserves in June (my birthday is the 21 btw hahahaha) and get a flood of oil on the market from all the countries that have it and you will see an amazing decline in gas prices again.
The stratigic oil supply will be tapped! Its simply a matter of timing! When the time is right, the Pres. will open it wide, and therefore, cause the price of gas to decline handsomely!
This action by the Pres. is designed to put the repugs in their propper place. And we all know what that place is. Thats right, the Pres. is going to shove all of those idiot baffoons right up that ASSHAT's Ass, Rummey the ASSHAT! The redumbs wear it so well! Then again, the Pres. might just shove them up that other ASSHAT's Ass, Rushkie Slimeball? Either one is a perfect place for them! They all talk out their asses!
This isn't my usual turf... Was just wondering... (Tyler, is it?) why so much vulgarity, profanity and ad hominem attacks are permitted. Seems almost every visible post is simply a rehashing of various ways of calling the congressman stupid, crazy, paranoid, etc.
It becomes quite tedious.
Yet when I open a "collapsed by the community" post it usually contains some actual information.
Is this some sort of Bizarro-world version of a commentary section?
Seems you've created quite a little paradise here for those who have confused useless speech for free speech. Thank you for giving them an outlet so they don't clutter up my usual board.
I worked in the various energy agencies during most of the oil embargo crisis and one of my last assignments was to interview various current and former officials about the proper use of the Strategic Oil Reserve. The clear consenus was that it was only for use in the event of supply interruptions, not as a device to control prices. If price control is the objective, the Government would have to revert to the oil price control, etc. regulations of the Nixon era--a step that I would not recommend.