Lawmakers Propose Uncapping Petroleum Reserve

[Township75]

WASHINGTON — Lawmakers on both sides of the political aisle are demanding that President Bush tap the Strategic Petroleum Reserve (search) to help American consumers cope with the cost of record-high gasoline prices.

SNIP

Last week, Democratic senators called for an oil swap from the reserves, similar to a plan enacted under the Clinton administration in 2000 to help Northeastern consumers deal with high home heating costs.

“The petroleum reserves are intended to provide relief at times when working families are struggling to make ends meet,” wrote Sen. Charles Schumer, D-N.Y., a longtime advocate of manipulating reserve schedules, in a letter sent to the president last week. “That time is now.”

Schumer and Democratic Sens. Barbara Boxer of California and Harry Reid of Nevada said last week that since the reserve is close to hitting its 700 million-barrel capacity, the administration should temporarily cease stockpiling the reserve with 100,000 barrels of oil each day.

Gas prices are finally were we need them to be in order to get people to conserve, to get people to start buying vehicles other than gas-guzzlers, and now some Dems want to F it up?!!

It shouldn't be this way.

Full story is here:
http://www.foxnews.com/story/0,2933,115447,00.html

[ClintonTyree]

1. Notice that..............

Bush has been replenishing the stockpiles when petroleum prices are at a peak. Let's see........who would benefit from those actions? I can't think of anyone offhand, can you?
The economy, despite what the government would have is think, is NOT all that robust at the moment. You'd think the Krazy Kowboy ould want to ease the pressure on working families. But I guess personal wealth takes priority in such situations.

[redqueen]

3. My take

Lawmakers were asking for reserves to be uncapped for over a year. I think bush is waiting until summer -- then he'll do it.

This gives all the vacationing families a nice moment of positive bush news to reflect on at the polls. Kitchen table issues do tend to influence votes.

[phantom power]

2. some calculations

Here's something amazing: Last night on the news they said that average gasoline prices in CA were 2.15. Now, let's translate that into costs from 30 years ago (1974). If we assume an annual inflation rate of 3% (which I suspect is low), 2.15 is equivalent to 0.88, which is STILL lower than the peak from the oil-crisis of the 70s.

By the way, if anybody can remember what gasoline peaked out at during the 70s, and the year, I can run the numbers and see how close I was.