Nice try on the stealth QE3, Obama. Oil already back at pre IEA release prices.

[Fury]

The Strategic Petroleum Reserve Release Has Now Been Fully Priced In As Crude, Gasoline Surge


Remember how 4 very long days ago, the 60 million barrel SPR release was vaunted as being the reason for the second consumer renaissance after it was largely expected it would lead to sub $90 crude, and low $3/gallon gas, and result in every Joe Sixpack going out and buying 3 houses at least? Well, so much for that: the IEA's action has now been fully priced in and WTI is back to precisely where it was before the IEA announcement on Thursday. Which means that what some said was a shadow QE (and don't get us started on all the mainstream media "journalists", among which Bloomberg and CNN, who continue to confuse QE Lite with something they call QE 2.5) had a half life of just over 3 days. Expect future intervention half lives to continue declining, as the criminal banking cartel's ammunition is now down to just one thing, the only thing, printing.



Oh, and for those morons predicting a second half economic pick up, here's intraday gasoline. Have fun explaining that to whoever it is that pays your bonus check.



http://www.zerohedge.com/article/strategic-petroleum-reserve-release-has-now-been-fully-priced-crude-gasoline-surge?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29



Hahahaha. This regime hasn't the faintest fucking idea what they're doing and it becomes more apparent every day.

[Soul Crusher]

The funny thing is that obama can't even keep his own story straight on this. 

If the issue is supply and demand - then open the gulf and alaska back up along with the leases held up in lousiana! 

If the issue is lybia and the unrest - then no shit - obama is the one solely responsible for that upheaval along with the crap in egypt.

So what is it? 

Price?   Well obama is on record saying that price alone is not reason alone for releasing the reserves and I posted on that?


So what the fuck was the point of this nonsense? 

Oh that's right - bachmann made a slip up on something silly. 

[Fury]

The funny thing is that obama can't even keep his own story straight on this. 

If the issue is supply and demand - then open the gulf and alaska back up along with the leases held up in lousiana! 

If the issue is lybia and the unrest - then no shit - obama is the one solely responsible for that upheaval along with the crap in egypt.

So what is it? 

Price?   Well obama is on record saying that price alone is not reason alone for releasing the reserves and I posted on that?


So what the fuck was the point of this nonsense? 

Oh that's right - bachmann made a slip up on something silly. 

John Wayne Gacy is more important to the leftist American Idol crowd. They can't be bothered with trivial matters like the economy. Just ask the Democrats in Washington, who haven't passed a budget in over 720 days. 

[Soul Crusher]

Can't post articles till thursday - but man - the crap coming from the wh lately is truly bizarre. 

Today he told americans "to up their game" to get the economy back.  Lmao.  He is doing everything possible to load bricks on everyones back and he wants people to stand up straight?  Lol. 

This oil thing is bizarre.  My hunch is that they got revised data on the economy and panicked.

Funny - obama is no longer talking about the benefits of "skyrocketing" everyones' energy prices.

I guess reality is a bitch for the college part time associate prof.   

[Fury]

Can't post articles till thursday - but man - the crap coming from the wh lately is truly bizarre. 

Today he told americans "to up their game" to get the economy back.  Lmao.  He is doing everything possible to load bricks on everyones back and he wants people to stand up straight?  Lol. 

This oil thing is bizarre.  My hunch is that they got revised data on the economy and panicked.

Funny - obama is no longer talking about the benefits of "skyrocketing" everyones' energy prices.

I guess reality is a bitch for the college part time associate prof.   

They have no clue how to fix the economy and have been reduced to throwing shit at the wall and seeing if anything will stick.

[Soul Crusher]

If he had done nothing at all we would have been far better off than whewre we are now.

[Skip8282]

Oh that's right - bachmann made a slip up on something silly. 

And she would be wise to keep that in mind or run the risk of being "Palin'd".  They will jump all over every stupid little remark just like that in the hopes of reelecting their Messiah.

[Fury]

And she would be wise to keep that in mind or run the risk of being "Palin'd".  They will jump all over every stupid little remark just like that in the hopes of reelecting their Messiah.

Exactly. She needs to be on another level than Obama. As the NY Times showed today, they're willing to talk about any gaffe she makes (while ignoring Obama's monster fuck-up with the dead soldier). She can't be giving them layups like that if she wants to get anywhere.

[George Whorewell]

Exactly. She needs to be on another level than Obama. As the NY Times showed today, they're willing to talk about any gaffe she makes (while ignoring Obama's monster fuck-up with the dead soldier). She can't be giving them layups like that if she wants to get anywhere.

Nonsense. Michelle Bachman is a greater threat to our national security than Al Queda, Mexican drug cartels and economic instability combined. She is an extremist who occasionally makes mistakes when discussing actors. Obama is smart and his wife is beautiful. He just needs more time to "fix" the country.

[Kazan]

Nonsense. Michelle Bachman is a greater threat to our national security than Al Queda, Mexican drug cartels and economic instability combined. She is an extremist who occasionally makes mistakes when discussing actors. Obama is smart and his wife is beautiful. He just needs more time to "fix" the country.

If this is Obama's idea of fixing the country, I'd hate to see if he was trying to break it.

[Soul Crusher]

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Oil rebound weakens effect of supply release (Fill up now)
Yahoo Finance (AP) ^ | June 29, 2011 | Chris Kahn
Posted on June 29, 2011 3:32:02 PM EDT by Hojczyk

The sway that non-OPEC governments had over oil and gasoline prices petered out in less than a week.

Benchmark crude hit $95.21 per barrel Wednesday on the New York Mercantile Exchange. Over two days, oil has recovered the loss from last Thursday when the U.S. and other oil-importing countries said they'd dump emergency oil supplies onto the market.

Brent crude, which is used to price many international oil varieties, also rebounded. Although at $111.95 per barrel, it's still about 2 percent below where it was last week.

The swift rebound in oil means that motorists won't see as big of a discount at the gas pump as expected. By Wednesday afternoon, gasoline futures recovered about 20 of the 26 cents per gallon that were lost after the International Energy Agency, which includes the U.S., said it would make 60 million barrels of crude and other fuels available this summer.

Gasoline for July delivery added 9.83 cents, about 3.5 percent, to $2.9123 per gallon in afternoon trading on the Nymex.

Patrick DeHaan, a senior petroleum analyst at GasBuddy.com, said the IEA announcement may have cut about 2 to 5 cents off the price of retail gasoline in the last week. "The rest was negated because of the increase in oil during the last 24 hours," DeHaan said.

The national average gasoline price fell nearly a penny overnight to $3.543 per gallon. But prices rose in some parts of the country, especially Rust Belt states, DeHaan said. In Ohio, for example, the average pump price increased 3.5 cents to $3.351 per gallon, according to auto club AAA, Wright Express and Oil Price Information Service.

(Excerpt) Read more at finance.yahoo.com ...

TOPICS: Business/Economy; Click to Add Topic
KEYWORDS: economy; oil; propaganda; reserves; Click to Add Keyword
[ Report Abuse | Bookmark ]

1 posted on June 29, 2011 3:32:04 PM EDT by Hojczyk
[ Post Reply | Private Reply | View Replies | Report Abuse]
To: Hojczyk
We had NO reduction in gasoline prices as a result of the raid on the reserves.


2 posted on June 29, 2011 3:34:41 PM EDT by Cold Heart
[ Post Reply | Private Reply | To 1 | View Replies | Report Abuse]
To: Hojczyk
Regular gas went from $3.45 per gallon to $3.43 per gallon. Thanks Obama! Please may I have another?


3 posted on June 29, 2011 3:35:39 PM EDT by Obadiah (If you don't believe you can win, there is no point in getting out of bed at the end of the day.)
[ Post Reply | Private Reply | To 1 | View Replies | Report Abuse]
To: Cold Heart
Our gasoline dipped to $3.26 per gallon over the weekend, but is now back up in the $3.70 range.


4 posted on June 29, 2011 3:37:43 PM EDT by Yo-Yo (Is the /sarc tag really necessary?)
[ Post Reply | Private Reply | To 2 | View Replies | Report Abuse]
To: Hojczyk
Let’s all remember that gasoline was at $1.83 when Boy Wonder took the reins of gub’mint.

Even if gas got to $3.00 a gallon, it’s still a huge drain on the average family’s budget.


5 posted on June 29, 2011 3:45:32 PM EDT by Darnright (There can never be a complete confidence in a power which is excessive. - Tacitus)
[ Post Reply | Private Reply | To 1 | View Replies | Report Abuse]
To: Hojczyk
The dump of reserves (half from the USA) was only 2 million barrels a day for 30 days for the whole world market. The USA uses nearly 20 million barrels a day, and China, nearly 10 million a day.


6 posted on June 29, 2011 3:55:00 PM EDT by familyop ("Nice girl, but about as sharp as a sack of wet mice." --Foghorn Leghorn)
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To: Hojczyk
National security was compromised and no benefit was realized.
0bozo's Amateur Hour strikes again!

7 posted on June 29, 2011 3:57:48 PM EDT by TigersEye (Wranglers not Levis. Levi Strauss is anti-2nd Amendment.)
[ Post Reply | Private Reply | To 1 | View Replies | Report Abuse]
To: TigersEye
You mean that dipping into the NSR didn’t cause prices to drop and stay there! Shazam!

What a fool, releasing oil you paid $50 a barrel for to replace it at $100 a barrel and all for nothing than a cheap political stunt. Jackass.


8 posted on June 29, 2011 4:02:12 PM EDT by sarge83
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To: Hojczyk
The release did nothing but hurt us.


9 posted on June 29, 2011 4:03:44 PM EDT by b4its2late ("Pray for Obama. Psalm 109:8")
[ Post Reply | Private Reply | To 1 | View Replies | Report Abuse]
To: Hojczyk
Related.

Geithner warns Congress on need for debt boost, extends default deadline
(to August 2nd)
http://www.freerepublic.com/focus/f-bloggers/2713846/posts

Oil release not a political move: Geithner
http://www.freerepublic.com/focus/f-news/2740267/posts


10 posted on June 29, 2011 4:06:42 PM EDT by familyop ("Don't worry, they'll row for a month before they figure out I'm fakin' it." --Deacon, "Waterworld")
[ Post Reply | Private Reply | To 1 | View Replies | Report Abuse]
To: sarge83
What a fool, releasing oil you paid $50 a barrel for to replace it at $100 a barrel and all for nothing than a cheap political stunt. Jackass.
Or... he did it intentionally to further weaken the economy and our security.

What they are doing just isn't going to get any clearer, America. It's not like it's a big secret.

The 0bama-Democrat-RINO (Progressive) "No Domestic Energy Policy!"

No domestic drilling.
No new refineries.
No new nuke plants.
No new dams for hydro-electric.
No coal.
No shale.
Deplete the SPR.
Let Iran get nukes.
Let Iraq fall to Iranian domination.
No Canadian tar sands oil.
Loan billions to Brazil's Petrobras for offshore drilling in Brazil.
Carbon caps and taxes to make what's left sky rocket in price.
Drilling moratorium in the GoM driving the oil industry out of the U.S.
All of that puts the U.S. in a position that war for oil or
complete economic collapse will be our only choices.
You can't frustrate every source of domestic energy
without consequences. Our enemies will blackmail us
to the extent that we are vulnerable to blackmail.

0bama, the Democrats and RINOs are leading us into a real war for oil.
A war we won't have the energy to fight.
A war we don't need to fight because we have our own resources.

It Begins… First Oil Rig Relocates From Gulf to Foreign Waters

"As a result of the uncertainties surrounding the offshore drilling moratorium, we are actively seeking international opportunities to keep our rigs fully employed," Dickerson said. "We greatly regret the loss of U.S. jobs that will result from this rig relocation."

Idled Gulf Rigs Head For Africa

It is not just Gulf operations that are being effected either.

Wait and see for Shell {Shell puts Arctic drilling plans on hold, waiting on feds}

Let's not leave the refineries out.

EPA gives final "no" to Texas refinery permits

Then there are the land-based oil leases.

Judge Grills Feds on Pulling Drilling Leases
"A federal judge on Wednesday questioned Interior Secretary Ken Salazar's justification for canceling 77 drilling leases sold by the Bush administration around national parks in Utah."

U.S. Saw Drill Ban Killing Many Jobs [ie. Obama KNEW he was destroying jobs, kept it secret]

Obama and O'Malley are Hurting the Poor in Md by Shutting Down Nuclear Power

Obama Administration Blocking 103 Gulf Drilling Permits February 03, 2011

Obama Clears the Way For America's 2 Largest Oil Wells to be Shutdown in Texas April 25th, 2011 (to "save" an "endangered" lizard)

EPA threatens Utah with air quality sanctions

Energy in America: EPA Rules Force Shell to Abandon Oil Drilling Plans

[GigantorX]

60 million  barrels of oil is 3 days consumption for the United States.

And now the 30 million barrels that were taken from the SPR will have to be replaced and the oil that will be bought to replace it will be really expensive.


What a joke.

[Soul Crusher]

Oil settles near $97 per barrel
Yahoo Finance ^ | July 5, 2011 | N/A
Posted on Tuesday, July 05, 2011 6:00:29 PM

________________________ ________________________ ________-



Some major investment banks are still betting that oil prices will grow next year despite an emergency injection of crude on world markets from the U.S. and other countries.

Higher oil prices should eventually push gasoline prices up as well.

Benchmark crude climbed as high as $97.48 per barrel Tuesday after Barclays Capital raised its 2012 price forecast for Brent crude, used to price many international types of oil. And Goldman Sachs said the International Energy Agency's decision at the end of June to release 60 million barrels of oil from its reserves won't cool off prices as much as originally thought.

Independent oil analysts say prices still could head lower this year. But some think IEA's announcement speaks volumes about its expectations for world oil supplies.

"I think it's an admission from them that Saudi Arabia might not be able to produce enough oil on its own" to meet increased world demand, analyst Stephen Schork said.

Benchmark West Texas Intermediate crude on Tuesday gained $1.95, or 2 percent, to settle at $96.89 per barrel on the New York Mercantile Exchange. In London Brent crude added $2.22 to settle at $113.61 per barrel on the ICE Futures exchange.

Barclays increased its 2012 forecast for Brent crude by $10 to $115 per barrel on Tuesday, saying prices will rise as global oil demand increases. Barclays sees China, India, Saudi Arabia and Brazil as the main sources for demand growth. Barclays actually lowered its expectations for benchmark WTI oil, but its forecast for an average price of $100 per barrel suggests prices are still headed higher this year.


(Excerpt) Read more at finance.yahoo.com ...

[Soul Crusher]

Oil Prices Climb Back to Pre-Reserve Release Levels
CNBC ^ | July 5,2011 | Patti Domm




Crude raced higher Tuesday as energy bulls pushed Nymex oil back toward the $100-a-barrel mark, prices last seen before world governments said they would release crude from their reserves last month.

West Texas Intermediate jumped 2.1 percent to $96.89 a barrel on the New York Mercantile Exchange, decidedly above the $94.45 close of June 22, the day before the announcement on the release of 60 million barrels from reserves.

Brent crude on the ICE futures exchange finished $2.25 higher at $113.63 a barrel, and just below the June 22 high of $114.21. Brent touched $114.44 Tuesday.

"I think we could probably test that $100 mark again. I also think for it to be sustained up there, you'd have to have something a little more going on, like geopolitical problems or some demand pickup," said Anthony Grisanti, president of GRZ Energy.

Some traders said the price gains Tuesday came from speculation that demand could tighten if the world economy improves, but others pointed to momentum and technical factors.

The WTI August futures contract broke above its 200-day moving average of $96.18.

On June 22, the day before the announcement by the International Energy Agency that crude would be released from strategic reserves, it was at $95.41. It hit a low close of $90.84 on June 27.

"The volume is very light. The market is very quiet," said Addison Armstrong of Tradition Energy. "After repeated attempts to break through the 200-day moving average on August WTI, it broke through there this morning. A settlement above that would be constructive for further price gains for the remainder of the week. That's what's going on today, particularly with the dollar higher and equities staying unchanged."


(Excerpt) Read more at cnbc.com ...

[tu_holmes]

60 million  barrels of oil is 3 days consumption for the United States.

And now the 30 million barrels that were taken from the SPR will have to be replaced and the oil that will be bought to replace it will be really expensive.


What a joke.

Dumbest thing to do ever... For what? July 4th Holiday?

And why? Prices were already dropping?

WTF is Obama thinking?

[Fury]

I believe oil closed over $97 today. Great work, Obama.

Add another failure to the list for this asshole.

[Vince G, CSN MFT]

The Strategic Petroleum Reserve Release Has Now Been Fully Priced In As Crude, Gasoline Surge


Remember how 4 very long days ago, the 60 million barrel SPR release was vaunted as being the reason for the second consumer renaissance after it was largely expected it would lead to sub $90 crude, and low $3/gallon gas, and result in every Joe Sixpack going out and buying 3 houses at least? Well, so much for that: the IEA's action has now been fully priced in and WTI is back to precisely where it was before the IEA announcement on Thursday. Which means that what some said was a shadow QE (and don't get us started on all the mainstream media "journalists", among which Bloomberg and CNN, who continue to confuse QE Lite with something they call QE 2.5) had a half life of just over 3 days. Expect future intervention half lives to continue declining, as the criminal banking cartel's ammunition is now down to just one thing, the only thing, printing.



Oh, and for those morons predicting a second half economic pick up, here's intraday gasoline. Have fun explaining that to whoever it is that pays your bonus check.



http://www.zerohedge.com/article/strategic-petroleum-reserve-release-has-now-been-fully-priced-crude-gasoline-surge?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29



Hahahaha. This regime hasn't the faintest fucking idea what they're doing and it becomes more apparent every day.

The President of the United States has little if not any control over a world commodity such as oil.  Arab Nations and Hugo Chavez spits in our countries faces and all we can do is ask for seconds.  Oil is pretty much America's crack pipe and every year we smoke more and more like Bobby and Whitney

What we need is renewable sources such as solar and wind, and have more cars running biodiesel since we grow a shitload of sweet corn.  Fuck, the cars in Brazil run on that shit made from sugar cane so its do-able and legalize industrial hemp to help out

[Soul Crusher]

Fail.   Burning food for fuel is stupid since it causes food inflation, not that team dildo cares about starving people one bit.  More people on food stamps is obamas goal.

[Soul Crusher]

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EDITORIAL: Obama’s gas stunt comes up empty
The Washington Times ^ | July 18, 2011 | Editorial
Posted on July 18, 2011 8:11:27 PM EDT by jazusamo

Siphoning oil from strategic reserve fails to cut prices

The results are in from President Obama’s controversial decision last month to tap into the nation’s oil reserves to drive down gas prices: none. Like his futile efforts to revive the moribund U.S. economy by spending $1 trillion in borrowed money, the president’s release of 30 million barrels from the nation’s Strategic Petroleum Reserve produced nothing more than a brief pause in the steady rise in prices at the pump. Nearly three years into an energy policy designed to hector Americans into accepting pointless “green” alternatives, the president seems to have finally acknowledged his chances of being re-elected go down as gas prices go up.

Prior to the June 23 dip into the reserves, oil stood at around $93 a barrel. The price dropped more than $4 a barrel after the announcement but bounced back up to the same level within five days and ended last week above $97. Likewise, gasoline stood at $3.63 a gallon before the president’s move and subsequently fell to a low of $3.54 on June 30 before climbing steadily upward to $3.67.

The International Energy Agency did its best to help Mr. Obama, releasing 30 million barrels of its own. Though that may sound like a lot, it’s little more than a drop in the global oil bucket. Such moves have no lasting impact because oil traders are looking at the big picture. There isn’t enough supply to meet the world’s demand. Even if consumption has softened in the United States and Europe due to the persistent economic slowdown, the thirst for crude in places like China and India is growing.

(Excerpt) Read more at washingtontimes.com ...










ObamaFail. 

[whork25]

If he had done nothing at all we would have been far better off than whewre we are now.

Are you nuts? if he hadnt bailed out wall Street the poor folks working there might have to give up their million dollar bonuses. How can you be so cruel

[Soul Crusher]

Oil tops $100 for first time since early June
Yahoo Finance ^ | July21,2011 | Chris Kahn




Oil topped $100 per barrel for the first time since early June as European leaders discussed more financial aid for Greece.

The new rescue package, which is being hammered out Thursday at an emergency summit in Brussels, propped up the euro relative to the dollar. Oil is priced in U.S. currency. The price tends to rise as the dollar weakens because oil becomes cheaper for investors holding foreign currencies.


(Excerpt) Read more at finance.yahoo.com ...

[Soul Crusher]

NEW YORK (Reuters) - The average price for a gallon of gasoline in the United States rose for the first time since early May following an increase in the price of crude oil, according to the latest nationwide Lundberg survey released on Sunday.
The national average price for a gallon of regular gasoline was slightly more than $3.70 on July 22, an increase of 8.58 cents in the past two weeks, according to the survey of some 2,500 gas stations in the continental United States.

The increase per gallon is nearly the exact same as the rise per gallon of a barrel of crude linked to the benchmark West Texas Intermediate, which jumped to $99.87 per barrel, up from $96.20 two weeks ago.
"It is crude, period, that did this," Trilby Lundberg, the survey's editor, told Reuters.
High unemployment and a general weak economy has been affecting demand for gasoline.
"If it had not been for the recent crude oil price hikes, we would have seen prices fall at the pump because of that weak demand and the economy," Lundberg said.

A year ago, the price per gallon was $2.73, about 96.72 cents less than the current price.
At $$3.28 a gallon, Tucson, Arizona, had the lowest average price for regular gas, while Chicago drivers paid the highest at $4.07, the survey found.

(Reporting by Ilaina Jonas, editing by Maureen Bavdek)

[Soul Crusher]

Gas prices up despite use of reserves
The Washington Times
8:21 p.m., Sunday, August 7, 2011




More than a month after the Obama administration said it would tap the country's emergency oil reserve to try to combat supply disruptions in the Middle East, gas prices at the pump actually have risen 10 cents.

President Obama had hoped the move, coming at the onset of the summer driving season, would temper the loss of supplies due to the ongoing civil war in Libya. Working with international allies, the U.S. said on June 23 that it would release 30 million barrels of oil over 30 days, while other countries with strategic reserves agreed to release another 30 million, in staggered sales during July.

And prices at the pump did dip, at first, from a nationwide average of $3.61 down to $3.55, according to AAA. But by last week, they had rebounded and the price per gallon stood a dime higher than when the administration first made its decision.

"Although it helped initially to pull down prices it was probably too little," AAA Mid-Atlantic spokesman John Townsend said, pointing out that the nation consumes as much as 20 million barrels of oil a day. "This is just a drop in the bucket."

Prices may be about to see some relief, though for unwelcome reasons. Last week's stock market drop and fears of the lingering sour economy have already begun to put downward pressure on oil, which analysts said will translate to lower pump prices — potentially trumping even the administration's oil release.

The Obama Energy Department had resisted calls earlier this year to tap the Strategic Petroleum Reserve, but reversed course in June, saying its release of 30 million barrels from the nation's emergency stockpile was intended to address an estimated loss of 1.5 million barrels a day of light sweet crude in Libya. The department said it has met that goal.

"We believe that the coordinated release of 60 million barrels of oil by partners around the globe, the majority of which will continue to enter the market over the coming month, has played an important role in addressing the oil supply disruption resulting from the situation in Libya," Energy spokesman Damien LaVera said. "The United States will continue to closely monitor oil market conditions and is prepared to take further action if needed."

Even as the administration cited the need to manage supply disruptions in its June 23 announcement, it nevertheless noted that prices were "significantly higher" ahead of the summer driving months of July and August than they had been prior to the Libyan unrest.

For its part, the International Energy Agency — a group representing 28 of the world's top oil-consuming countries — in late July decided against releasing additional supplies into the market, citing a rise in OPEC oil production despite the situation in Libya.

Established in response to the 1973-1974 oil embargo, the SPR is stored in underground caverns along the Texas and Louisiana Gulf coasts. Presidents have the authority to access it at their discretion.

Prior to this summer, the U.S. last tapped the SPR in response to Hurricane Gustav in 2008, though that action was technically an "exchange" because the oil companies later resupplied the stockpile after the disruption. The most recent emergency sales were after Hurricane Katrina in 2005 and amid the 1991 Gulf War.

The latest drawdown, which officials expect to be completed by the end of August, will leave the SPR with about 700 million barrels.

Critics questioned the timing and effectiveness of the move, saying it was too little to make a dent in world supplies and also drains the strategic reserve, leaving it less ready for a major emergency.

"The typical use and the reason the Strategic Petroleum Reserve was used in the past was when there was a direct threat to world oil supplies or something like a hurricane," said Dan Kish, senior vice president for policy at the Institute for Energy Research. "It's like one of those fire extinguishers that says 'break glass in case of emergency.' [The Obama administration] decided to be the high-school delinquent who broke the glass so he could spray the fire extinguisher at his buddy."

If the administration really wanted to send a reassuring signal to oil markets, Mr. Kish said, it should open up currently off-limits areas in Alaska to oil drilling and speed the permitting process of projects like the proposed extension of the Keystone pipeline, which transports oil from Canada to refineries in the U.S.

As evidence, he noted the price of oil dropped more than $9 a barrel as former President George W. Bush was announcing on July 14, 2008 an end to the presidential moratorium on drilling. Within two weeks, the price was down by $22.

Environmental groups say the reality of the global oil marketplace means there are few things any president can do in the short term to tamp down on prices. Steps like increasing fuel-efficiency standards — something Mr. Obama did just this month — would be far more effective in weaning consumers off of oil in the long run, according to Deron Lovaas, federal transportation policy director at the Natural Resources Defense Council.

"Once we've dealt with efficiency and making the most of this resource, you've therefore bent the demand curve so to speak," he said. "Then you look at what alternatives are scaleable."

© Copyright 2011 The Washington Times, LLC. Click here for reprint permission.

[Soul Crusher]

When Will Obama Pivot to Gas Prices?
Townhall.com ^ | August 8, 2011 | Mike Needham




Last week, President Obama played tough, scolding Congress as he tried to pivot the national political narrative to job creation. The President’s pivot, which he’s tried numerous times before, includes a host of excuses like “headwinds” and “uncertainty” but little in the way of real solutions.


A recent uptick in gasoline prices, gone largely unnoticed by the Washington crowd that was focused on raising America’s debt ceiling, will make job creation even more difficult. Since bottoming out toward the end of June, gas prices have been slowly rising. Last week, the average price for a gallon of regular stood at $3.71, up more than 13 cents since President Obama belittled Congress into cancelling their Fourth of July recess.


Consumer Pain


Consumer spending is a major driver of the American economy, and consumer confidence is a key economic indicator. As energy costs – specifically gasoline – increase, Americans have less money for goods, services and recreational activities like vacations. For every one-cent increase in a gallon of gasoline, Americans’ disposable income drops by about $600 million per year.


Last week, the government reported that Americans cut back on their spending for the first time in nearly two years. After a decade of personal borrowing spurred by a housing bubble, spending less and saving more is not necessarily a bad thing. However, declines in consumer spending and consumer confidence as an economic indicator paints an ominous picture.


Of course, rising gas prices – up nearly $1 per gallon from this time last year – are not solely responsible for the bleak economic outlook held by consumers. Bad manufacturing numbers, high unemployment and weak housing prices all contribute. However, gas prices remain one of the most visible and comprehensible reminders for Americans that our economy is in serious trouble. It is something that Washington could take action to correct.


Here to Help?


Of course, President Obama’s mantra is Washington is here to help. All too often (always?), his solutions favor government intervention over economic competition.


In late June, President Obama misguidedly released 30 million barrels of oil from our Strategic Petroleum Reserve (SPR). At the time, Americans were paying around $3.61 for a gallon of gas. In other words, the gimmick failed.


Then in the midst of the debt talks, President Obama announced a new set of fuel economy standards: passenger-car fuel economy to 54.5 miles per gallon by 2025. A study from the Michigan-based consulting firm Defour Group found a 56 mpg standard would destroy 220,000 jobs and numerous studies suggest the regulations will add over $3,000 to the price of each new vehicle. And this week President Obama will announce new standards for heavy-duty trucks.


If all else fails, the administration has a third avenue: subsidies. A host of benefits already exists for hybrids and electric cars. Last month, General Motors sold a whopping 125 Chevrolet Volts. Highly acclaimed and subsidized, but not selling. Nonetheless, the Obama administration and a bipartisan group in Congress is seeking similar subsidies for natural gas vehicles. Try, try, try again…


The Real Problem (and Solution)


At almost every turn, the Obama administration has made job creation, economic growth and domestic energy production more difficult. Just take oil and natural gas production in the Gulf of Mexico. Leasing activity is down, capital spending has dropped and jobs have been lost as a result of the administration’s de facto moratorium and slow walking.


An analysis by Quest Offshore Resources found that amazing growth would occur if the pace of offshore permitting were to return to early 2010 levels: 190,000 jobs created by 2013, capital expenditures would increase by 140% and spending by the offshore oil and natural gas industry would increase by 70%.


Rather than blocking and discouraging domestic production, which leads to domestic job creation, the administration should be encouraging it. President Obama and Congress should increase onshore and offshore access, as well as access to oil shale reserves. The permitting process needs to get moving, the review process sped up and the regulatory and legal delays must be dealt with.


A Harsh Reality


Instead of rhetorical, focus group-tested pivots, the President would be wise to pivot toward increasing American energy production, which would create jobs and help offset the rise in gas prices. Unfortunately, we cannot expect real, pro-growth policies from this administration or the Democrats who control the U.S. Senate.



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