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Sunday, June 26, 2011

Obama's Oil Release

Purely Political.

Hey folks,

I think it was Thursday that Obama Announced that he was going to Release 30 million Barrels of Oil from the Strategic Petroleum Reserve. This provoked a myriad of response from EVERYONE. Most can't figure out WHY. Many feel this is a mistake. The Strategic Petroleum Reserve is for emergencies. It is to guarantee that we, and our Military will have Precious Oil if needed during a major disruption.

BG said this.

"Hey Pete. Did you catch this? Obama is releasing 30 million barrels of oil from the emergency reserve. Just with this announcement, oil prices fell. Do not tell me that if we used our own resources, it would not bring the price down. Remember Bush? Price down. Remember Obama, price up. But is this really a good thing? Really, what is 30 million going to do if we as a country use 20 million a day? Not to mention, is this notfor emergencies? The only energy emergency we face as a nation is Obama himself."

I agree with ya BG. If Obama was to release this all at once and give it all to us, it would last us a whopping day and a half. It will take away from the Strategic Petroleum Reserve. The prices are FALLING already. We are not facing any shortages. Obama will release 30 million Barrels. Saudi said they would increase production as much as 1 Million Barrels per day to make up for Libya. So even though OPEC said they would not increase Production, to help us out with rising prices, the Saudis said they would. So they go against OPEC and Obama says he will release this? The SPR release equals what the Saudis could do in one month.

So what happens? If OPEC gets really upset, they could CUT Production, in essence, keeping the prices where they are. But remember, we have to replace this Oil, and we will be doing so at a much higher rate.

The truth is, none of this makes sense. Our friends over at API pointed out a Blog Post from Mark Green over at Energy Tomorrow. Who posted this.

Trying to figure out the administration's decision to drain 30 million barrels of oil from the Strategic Petroleum Reserve (SPR) - when there's no current U.S. supply crisis and while the administration is continuing to fight increased access to domestic oil supplies. Trying, but not succeeding.

Remember that the 727 million-barrel reserve was created after the 1973 oil embargo to protect the U.S. from dire supply disruptions. So, is there a crisis? Actually, government figures show the United States is well supplied, with stocks at above-average levels.

The Energy Information Administration says U.S. stocks of crude oil (excluding the SPR) have risen steadily since the first of the year, standing at nearly 364 million barrels as of June 17 (up from about 347 million in January). Gasoline stocks also are up (214.6 million barrels compared to 205.9 million in mid-May).
So no shortage. No reason for the release. Read the whole Blog Post HERE. But he also posted API's President Jack Gerard's comments, in an interview with CNBC.

"It's confusing as to why we would wait to this point to release part of the (SPR), but we've still failed to step forward and say let's bring long-term supply to the marketplace, create American jobs at a time when we have 9.1 percent unemployment and produce millions of dollars of federal revenue at time when we're struggling with a debt and deficit crisis. ... Just yesterday the administration sent a letter to Capitol Hill opposing a permitting bill that was designed to expedite permits in Alaska to produce oil and natural gas. We are getting a confused message."
They are not the only ones folks. Even some in the State Run MMD {Mass Media Drones} can't figure this out. But some are doing their best to report this in a positive light. According to CSN - Obama Tapping Emergency Oil Reserve to Make Up for Shortage From Libya Thursday, June 23, 2011 By STAFF, Associated Press

WASHINGTON (AP) - Wary of a new surge in gas prices, the Obama administration has decided to release 30 million barrels of oil from the country's emergency reserve as part of a broader international response to lost oil supplies caused by turmoil in the Middle East and North Africa, particularly Libya.

The release from the U.S. Strategic Petroleum Reserve will amount to half of a 60 million barrel international infusion of oil planned for the world market over the next month.

"We are taking this action in response to the ongoing loss of crude oil due to supply disruptions in Libya and other countries and their impact on the global economic recovery," Energy Secretary Steven Chu said Thursday.
But the Saudis already said that they would increase production to meet this demand. So? It goes on to say how great Obama is for doing this prior to the Forth of July. ETC. Read the rest of the Story HERE.

Folks, this is really pretty simple to understand. Obama is on the Campaign Trail. He is going across the Country this Summer to try to convince you that the Economy is good and getting better. {Sigh} Yeah I know. But he IS trying to convince you that what you are experiencing is not really happening. He wants you to believe that the Economy is coming roaring back. Kind of hard to do when people are coming up to him saying that they can not afford GAS to GO to Work. So he is looking for a quick drop. At the very lease, he can say "Hey, I'm trying. Look, I released 30 million Barrels." If he was serious, he would lift the Moratorium, stop the stalling, and get out of the way and let us Drill here, Drill now, and REALLY add to the Supply.

I do remember what happened when Bush announced we would drill more. Prices dropped like a rock. When Obama said No we won't No new Drilling. Prices DID skyrocket. When the Release was announced, Prices fell like a Rock AGAIN. I agree with BG. Imagine what would happen if we DID start getting serious about using our own resources.

No folks. This is PURELY Political. Screw the Saudis. Screw the Emergency Reserve. Screw long term Energy Prices. We need CHEAP Prices right now. Obama is TRYING to get re-elected.
Peter

Sources:
Energy Tomorrow Blog - Non-strategic Thinking
CSN - Obama Tapping Emergency Oil Reserve to Make Up for Shortage From Libya

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