Skip to comments.Obama to David Cameron: Letís tap our strategic oil reserves together
Posted on 03/15/2012 8:57:11 AM PDT by SeekAndFind
Remember that Barack Obama insists that there are "no silver bullets" to fix the issue of high gas prices. So when British Prime Minister David Cameron visited Washington for high-level talks and the discussion turned to gas prices, what did Obama propose? According to Reuters, holy water and a garland of garlic:
President Barack Obama and British Prime Minister David Cameron discussed the possibility of releasing emergency oil reserves during a meeting on Wednesday, two sources familiar with the talks said, the first sign that Obama is starting to test global support for an effort to knock back near-record fuel prices. Obama raised the issue during a broad bilateral meeting at the White House, according to a UK official with knowledge of the discussion.
Asked about the talks, a senior Obama administration official said: “No agreement was reached. We will continue to work together to address energy security and oil price issues.” While U.S. officials have said for weeks that they will consider all possible measures – including a release from the U.S. Strategic Petroleum Reserve (SPR) – to prevent prices from derailing a nascent economic recovery, Wednesday’s meeting was the clearest indication that diplomatic talks were moving ahead. Discussions could last as long as several months before any decision is made, one of the sources said.
We’ve discussed the demand from Democrats on the strategic petroleum reserve on a number of occasions. The problem with the gasoline and oil markets isn’t a temporary disruption in a healthy supply, however, which is what the SPR is designed to buffer. The problem is a chronically and artificially suppressed supply, thanks to Democratic insistence on blocking domestic energy production and oil extraction over the last three decades or more.
This is what Obama refers to as the “silver bullet,” claiming that expanding drilling and extraction is a short-term policy that won’t enhance American energy independence. That’s utter nonsense; drilling is a long-term solution that actually addresses the chronic supply issue and — not coincidentally — the trade imbalance, the weak dollar, jobs, economic growth, and a number of other issues in the American economy. If drilling is short-term thinking, then what can a one-time release from the SPR be called — the ADD solution?
Jim Geraghty gives a chronicle of SPR releases:
The emergency would seem to be Obamas poll numbers. Then again, this seems to be a Democratic candidate tradition; Al Gore called for the same move while running for president in 2000.
Oil from the Strategic Petroleum Reserve has been sold five times in its history: Most recently in 2011 during the conflict in Libya; in 2005 after Hurricane Katrina; a sale of $227 million worth of oil during fiscal year 1996 to reduce the federal budget deficit; in 1990-1991 during Desert Shield/Desert Storm, and a small test sale in 1985.
And how well have those releases worked as long-term solutions? Tina Korbe noted that gas prices actually went higher within weeks of the release last summer. The only reason for an SPR release now would be for the “emergency” Jim identifies — the electoral emergency Obama will face if gas prices continue to rapidly increase.
The RNC has a new video out today showing just how often Obama has reminded us that there are “no silver bullets” on gas prices — and how little he has done to implement a long-term policy that will lower them:
I thought Barry said that there is nothing he could do to lower gas prices. Typical Chicago street thug liar.
The price of oil is based on futures speculation, not current supply and demand. There are no current supply issues or high demand. The latest spike is based on speculation of war anf threats in the Middle East. Releasing the reserves will do nothing for prices in October and November.
Popping my popcorn waiting for Newt’s next campaign stop speech. Go get ‘em Newt! He will have a field day with this.
Year of vehicle 2000-present $5.00 gallon
1990-2000 $4.00 gallon
1980-1990 $3.00 gallon
.............................Discussions could last as long as several months before any decision is made................
Yeah - until the fall near election time!
However ... the Oil Reserve is a drop in the bucket when it comes to the impact on the price of gasoline and is ONLY for use for National Security reasons during a National emergency!
Who’s runnin’ this outfit? Us or THEM.
Presidential fiat is in the Constitution where?
Guaranteeing $20/gallon gasoline in the future to prevent $4/gallon gasoline now.
Doom on them.
Yep. And Newt is right. Just the announcement by the US that we are going to drill drill drill will drop the price of oil.
Only if it came from a President who didn't have a history of lying.
Yes, the declining dollar, as well as pretty much every world currency, inrelation to oil, explains a lot of the long run increase in prices since the early 2000s. The latest short-term spike, however, is all speculation. My guess is once this speculation runs its course, it will settle in the low $3.00s where linear regression would put it.
“If drilling is short-term thinking, then what can a one-time release from the SPR be called the ADD solution?”
Epic. Simply Epic.
IIRC there is a problem tapping the reserve.
After the oil is drained the salt walls start caving in and after 2 or 3 times the cavity is useless.
Tapping the reserve is NOT strategic.
So what will happen if the crisis in the middle east blows up.....Can you say $10.00 per gallon or more....compliments of OBambi