US will stop sending oil into strategic reserves

[AngryOldDem]

Source: Associated Press

WASHINGTON (AP) -- The Energy Department says it has canceled oil shipments into the Strategic Petroleum Reserve beginning in July when the current purchase contract expires.

The move came days after Congress passed legislation requiring the president to suspend the shipment into the reserve in hopes of lowering gasoline prices.

The Energy Department said it will not sign contracts for new shipments of 76,000 barrels of oil a day for the six-month period beginning July 1. President Bush had opposed halting the shipments, arguing that such a relatively small amount of oil would not influence prices. Current shipments will continue. The reserve is 97 percent full, holding 701 million barrels of crude.



Read more: http://hosted.ap.org/dynamic/stories/O/OIL_RESERVE?SITE=WHIZ&SECTION=HOME&TEMPLATE=DEFAULT

[dutch-Eddie]

1. Does someone other then Congress believes this may actually

lower US fuel prices?

[RantinRavin]

2. No, it will not lower prices

But it will prevent the government from wasting money on oil it doesn't need at super inflated prices.

[bahrbearian]

5. Of course it will lower prices, Just in time for the Elections

It will work in McCain's favor , he will find a way to take credit for it. They will call it jaw boning the Saudis. Or as Jeff Gannon would call it , "My turn to be on top"

[Q3JR4]

3. The administration fought tooth and nail to

stop this congressional resolution. I guess when he saw the House' veto-busting vote on the issue it changed his mind.

I think * is turning into a lame duck president.

Q3JR4.

[matt007]

4. Well its full anyway

The FEDgov is starved for revenue as it is. Filling the reserves is just not necessery.

[dmosh42]

6. Clinton did it in the 1990s, and it stopped the speculators real quick...

Because he not only stopped the buying, but was going to start selling some oil at the higher prices. That would saturate the market, and the futures prices would bust.

[matt007]

7. very true

speculation is out of control.

[laststeamtrain]

8. Bush administration halts fill of strategic oil reserve

Source: McClatchy Newspapers

Bush administration halts fill of strategic oil reserve
David Lightman and Kevin G. Hall | McClatchy Newspapers

last updated: May 16, 2008 04:23:18 PM

WASHINGTON — The Bush administration, bowing to intense political pressure, said Friday that it would cancel oil shipments into the Strategic Petroleum Reserve starting in July.

The move comes two days after Congress voted overwhelmingly to suspend filling the reserve. The surprise announcement came not from the White House but from the Department of Energy, on the same day that President Bush, traveling in Saudi Arabia, was rebuffed in his call for the kingdom to pump more petroleum in hopes of lowering today's high oil prices.

The Senate vote on Wednesday was 97-1, and the House of Representatives approved the plan 385-25 — far more than Congress would need to overturn a Bush veto.

The government has been filling the reserve, in underground salt caverns along the Texas and Louisiana coastlines, at a rate of about 70,000 barrels a day. The 727-million-barrel reserve at full capacity now has about 703 million barrels. The reserve was created in 1975 to provide insurance against supply disruptions, such as when the Organization of Petroleum Exporting Countries imposed an embargo on exports in 1973-74.

Read more: http://www.mcclatchydc.com/homepage/story/37393.html

[Toucano]

9. Bowing to intense political pressure?

Sounds to me like it was already a done deal.

Why is the "Bush administration" being given credit for halting it when congress actually did it?

[DJ13]

10. ......... starting in July.

Just long enough into the summer months so theres little possibility any additional oil on the market will be refined in time to help alleviate the higher summer gas prices.

Amazing how that worked out.....

[alfredo]

11. They wanted it full for when he invades Iran.

[UpInArms]

12. US will stop sending oil into strategic reserves

Source: Associated Press

WASHINGTON - The Energy Department says it has canceled oil shipments into the Strategic Petroleum Reserve beginning in July when the current purchase contract expires.

The move came days after Congress passed legislation requiring the president to suspend the shipment into the reserve in hopes of lowering gasoline prices.

The Energy Department said it will not sign contracts for new shipments of 76,000 barrels of oil a day for the six-month period beginning July 1. President Bush had opposed halting the shipments, arguing that such a relatively small amount of oil would not influence prices. Current shipments will continue.

Read more: http://news.yahoo.com/s/ap/20080516/ap_on_bi_ge/oil_reserve

[chknltl]

13. A small step to where???

We have to wait until JULY for this to take place? I thought to see things happen NOW! In the meanwhile bush's buds will find ways to RAISE our gas prices to compensate for any loss potential to those same buds. Sorry, I confess to being a cynic...not sure how I got that way.

[Newsjock]

14. Simple questions from a simple mind

-- If the president opposes this measure, why did the Energy Department take this action before the president signed the bill?

-- Is a law specifically required to set the policy on the Strategic Oil Reserve?

-- If so, how can the Energy Department take action without a signed bill?

-- If not, who sets the policy and why?

Sheesh, don't reporters do their jobs anymore?

[Historic NY]

15. He just kept dumping oil into the salt mines...............

when he actually could have used those barrels to influence the speculation of oil futures. I've been saying this for months and people look at you like your nuts. I remember Clinton using the reserves to drive the prices down several times. Don't you think the Stratigic Reserves should be used for a national emergency.

http://www.sciencedaily.com/releases/2005/07/050705231841.htm

[Jack_DeLeon]

17. I dont think the price of gas is a national emergency that can be solved...

by tapping the reserve. So we shouldnt tap it because at best we would drop some tens of cents for a short while then be back to where we are and without the oil incase of a larger crisis.

The problem we have now is something that needs a real fix and thats nothing that can be solved easily. We need to change our way of life to adapt to the current and future situation.

[Jack_DeLeon]

16. I'm glad we have oil in the reserves....

but its pretty fucking dumb to keep putting it in there when we are at record high prices.

I dont think we should be tapping the reserve for "merely" economic reasons. It should be for national emergencies or war if we were to be embargoed or something. But yeah we definately shouldnt be putting anymore in anytime soon.

[iamjoy]

18. I Agree With Bush On This One

I never thought I'd say that and it makes me inclined to check the temperature in hell.

Tapping the reserve (or suspending shipments to it) is a short term solution to a long term problem. I know the affect high gas prices are having and that the poorest are hurting not just as it costs more to fill up their tanks, but as the prices of necessitities increase. I see the logic in attempting to increase the supply of gas on the market to lower the price. This idea is marginally better than suspending the gas tax. At least in the short term.

What if we have a bitter winter and then people have to spend more to heat their homes? Which is more important - taking a summer vacation or turning on the heat in the winter when temperatures dip into the single digits for a few days. Are we going to suspend shipments then too? Or worse yet, tap it again?

Suspending shipments to the reserve does nothing to address the long term problems. We use too much fuel and our alternatives are not viable. Many believe that Peak Oil has already begun. If so, things are only going to get worse and there could be a day when we need what is in that reserve a lot more than we do now.