Gas prices thru the roof while Bush YAWNS

This article from the WP says we have 660 million barrels in our strategic reserve,and Bush is determined to get to 700-WHY?What is the SR used for?Just think if this was Clinton or Kerry in charge the media would be screaming bloody murder for the lack of action.Bush does NOTHING and it pisses me off.DO SOMETHING MR.PRESIDENT please

http://www.washingtonpost.com/wp-dyn/articles/A34512-2004May17.html

If that's the case, it would be a bit irresponsible for Bush to use it for civilian political purposes, given that he's got the military involved in at least two wars in oil producing regions, and in other actions all over the rest of the planet.

But, if it's a choice between doing what is responsible and scoring political points, you can bet Bush will go for the political points.

is what will profit Daddy and all his friends that supercedes any and every thing else.Just ask the Saudi royal family

It's the US Army. "

http://www.atimes.com/atimes/Front_Page/FE18Aa03.html

dp

Thus the purpose of the Strategic Reserve is to "cushion" the effect of any sudden cut off of oil, not only to the military but the civilian economy.

Remember if soldier's families are having problems do to a oil cutoff, the soldier will have to be released from duty to help them (if Not the soldier will be to worried about his family to do his job, thus it is better to release him than to keep him). Thus the problem is balancing the needs of the Army/Navy and Air Force with the needs of the Civilian economy the is supporting the Army, Navy and Air Force. If the Civilian economy goes bad, no ammunition, food, or other supply for the Military. Thus the reserve is to help BOTH the military and the Civilian economy IF THERE IS AN EMERGENCY.

Now a secondary function of the Reserve is as a threat to the oil producers, i.e. if they raise the price of oil to fast or to far, we can flood the market with oil dropping the price of oil and harming those same oil producers. It was only used by Clinton when he opened the reserves to lower prices in 2000 but this "threat" is one of the function of the Strategic Reserve.

One last comment, the Reserve was first proposed by the Shah of Iran in 1970 to Nixon, who nixed the idea till the 1973 oil embargo (The Shah was worried about low oil prices in 1969 and hoped that the US would buy more oil and thus increase the price). Since that time the reserve had NEVER BEEN FULLY FILLED. No President (Till Bush II) had commented themselves to buying oil for the reserves except at times of low oil prices.

When prices had been high (but supplies adequate) the US Government has just not purchased oil. At time when the prices drop we purchased oil. Under Clinton when prices peaked, Clinton opened the reserves to force down the prices (increase supply drops price).

Thus with prices high why is Bush buying oil (besides to help his oil buddies by keeping the price of oil high)? Is the Government worried that the House of Saud will fall and with it Arabian oil will be cut off for a time period? Is Bush planning to invade and fears that the House of Saud will cut off oil while we are invading? A lot of questions, but only time will answer those questions.

As it becomes increasingly expensive to extract the oil from the oil fields, gasoline will become a precious commodity. There will have to be some major social and financial changes made.

And Team Bush intends to make them.

--bkl

The strategic oil reserve is meant to be used in case of a catastrophic supply problem i.e. an oil embargo or the explosion or bombing of a major pipeline or refinery. Secondly, releasing some of this oil or not continuing to fill it at this time would have a negligible effect on prices. In 2000 when Clinton did it, it had virtually zero effect on prices at the pump level. Prices only lowered months later when OPEC increased production. The US alone uses over 20 Million barrels of oil a day. The untold reason of high gas prices is China and its burgeoning economy. The US only has about 260 million people who need energy, China has over a billion and are rapidly gaining more. Tell China to stop having so many babies damn it.

I'd say you came in the WRONG door.

-edit-
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=585142

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=114&topic_id=7297

(Please note the above is tongue in cheek. Please do not hit the Alert button)

You see, the prices of gas etc. are up to fund the reelection campaign. There are several entirely domestic suppliers who extract, refine and sell their own gas (Citgo immediately comes to mind as among the biggest, but Marathon and a couple of others are mostly or entirely in the same boat). Wouldn't you know it that these are some of the same folks who are the biggest supporters of W's now that the campaign machine that was Enron is gone, the campaign money has to be made up somehow.

Also, about the time prices started to rise this year, the prices have risen every year for the last few because the suppliers are intentionally trying to spike prices because they don't like making the reformulated gases.

Right now, the bottle neck in fuel production is NOT at the extraction level. It is at the refinement level. OPEC can pump more and could increase capacity to pump much more. As much as I would like to see the end of fossil fuels, there is plenty left for at least the next half a century or so at least. However the refineries have shut down about half of their capacity in the last 30 years and not a single new plant has been built in that time.

Essentially this is the same deal that California was in the winter of their discontent.

These are real policies having a real effect on people's bottom line, especially those at the bottom of the ladder tryin to scrape by getting to and from work.