http://www.foxnews.com/politics/2011...tegic-reserve/



Discuss!



I think it's a good thing. Gas prices will drop, and with Europe and Asia doing it as well, maybe it'll put pressure on the arab countries (Iran) to keep prices down and production high so we don't do this again. I wouldn't think they're too happy about it.

 

I bet prices will only drop 2-3 cents.

 

$25-$30 per barrel of oil is worth $1 per gallon of gasoline in a steady market.



The SPR is a STRATEGIC reserve. Not an economic reserve. It's for running tanks & whatnot, not getting you a $avings at the pump.



Morons. But what else do you expect from the current crop of jokers.

 

I think I read that we are approaching are reserve limits? Can't remember precisely what I read, but I'm sure we could store more if we needed to.



Just where do you store 726,000,000 barrels of oil?



If our reserve is full, why not release 5% to stimulate the economy? I'm not seeing the negative effects

 

That's not what it's for. When we had NO foreign oil imports, that sucked and caused huge economic disruptions. Then we made the SPR to prevent oil shocks like in the 1970s again. We have oil coming in now, just it's expensive. Letting a little out of the SPR won't do anything to change WHY it's expensive (mostly demand, a bit of speculation). It also won't stop the rise in gas prices (temporarily maybe, not for long). What it WILL do is lower our reserve levels below what they are now and then if there were an actual supply disruption there would be that much less in the piggy bank. A better idea for offsetting foreign supplies is getting more oil out of the great frozen waste lands in Alaska, netting a "permanent" domestic supply increase.



Better still is to build a few new nuclear plants to replace oil-burning electric generation stations. Preferably in an area not prone to flooding or earthquakes . . . then RECYCLE the spent fuel instead of burying it.



You store oil in holes in the ground, after you pump it out of . . . holes in the ground. We are supposed to be increasing the volume we have on-hand for just-in-cases.



Further reading for those with interest & spare time:

http://keithhennessey.com/2011/03/07...m-reserve-spr/

and



http://www.faculty.fairfield.edu/cmi...urnal/Pope.pdf

 

I do know that just the mentioning of releasing 30m barrels dropped gas from $3.89 to $3.65 here. We need to but more pressure on OPEC to increase production as well as start drilling here. Shell just spent $4 billion on an explore drilling off the coast of Alaska and when requesting permits to start drilling they were told no.

 

The price of gas lags the price of oil by a month or two. Unless your local station owner is an idiot, this announcement will have no immediate effect at the pump.