Oil hits 30-month high in trading

posted at 2:55 pm on March 4, 2011 by Ed Morrissey

In 2008, the rapid rise in gasoline prices prompted a pre-Tea Party conservative grassroots movement to “drill, baby, drill” and accelerate the use of American resources.  The economic collapse popped the oil bubble as energy demand dropped significantly, and the issue faded to the background as activists focused mainly on ObamaCare and out-of-control government spending.  Thanks to the wave of unrest sweeping through Arab nations, though, oil prices have once again shot up rapidly, hitting a 30-month high earlier today of $103 per barrel:

Oil prices hit a two-year high Friday after the U.S. government said the unemployment rate fell to 8.9 percent in February.

The Labor Department said the economy added 192,000 jobs last month. That suggests more people will be commuting at a time when world oil supplies are under pressure because of the crisis in Middle East.

Benchmark West Texas Intermediate crude for April delivery gained $1.27 to $103.17 per barrel in New York. The price jumped to $103.57 per barrel earlier in electronic trading, the highest since Sept. 29, 2008.

Brent crude hit an even higher price at $115 per barrel.Gasoline prices have jumped more than 10% in just three weeks, with 44 cents added to the average cost overnight, according to AAA.  Thanks to these pressures, food prices have also jumped, creating inflationary pressure as the energy multiplier effect works its way through the economy.

Don’t worry about gas prices, though, because the Obama administration assures us that they can address the problem.  Will they start expediting drilling permits and streamline EPA obstacles for the US to start producing more of its own energy?  Not really:

Treasury Secretary Tim Geithner told lawmakers Thursday that the U.S. and other nations are prepared to tap back-up oil reserves if Libya unrest continues and severely disrupts oil supplies.

Libya is the first oil exporting nation to be engulfed in the political upheaval spreading across North Africa and the Middle East, and investors have been worried that chaos in the region will drive crude prices even higher. …

“It’s important to note that there is considerable spare oil production capacity globally, and we and other major economies possess substantial strategic reserves of oil,” he said in prepared remarks. “If necessary, those reserves could be mobilized to help mitigate the effect of a severe, sustained supply disruption.”

The Treasury secretary reassured lawmakers that underlying inflation remains low nationwide. And he said the U.S. has “considerable spare oil production capacity” it could consider tapping in the event of a “major” supply disruption.

It’s worth pointing out that had we stuck with the policy first broached by the Bush administration of opening up American exploration when the Drill Here, Drill Now movement arose in early 2008, we’d already be producing significantly more American crude than we do now.  In addition, if we had started working in ANWR — a move not supported in any real sense by the Bush administration — we’d have even more of our own resources to buffer these developments in the Middle East.  Switching to natural gas and exploiting the shale holdings in the interior West and eastern US would have had us on our way towards weaning ourselves from foreign energy resources altogether.

Instead, here we sit, not in the same position as 2008 but considerably worse off, thanks to the permitorium imposed by the Obama administration and the regulatory war launched on energy producers by the EPA.  Geithner wants to argue that tapping the strategic reserve is a policy, when in fact it’s a short-term desperation tactic that will do next to nothing for even near-term flexibility for America’s energy needs.

We don’t need to tap.  We need to drill — drill here, drill now, and drill everywhere we have reasonable chances of success.  Otherwise, the American economy will continue to risk being held hostage to the fates of unsavory dictators and kleptocrats, and the regimes that eventually replace them.


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“Under my plan, energy prices will necessarily skyrocket.”

Hmmmm… where have I heard that before?

UltimateBob on March 4, 2011 at 2:58 PM

Geithner, the biggest economic mistake to ever sit on the treasury.

upinak on March 4, 2011 at 2:59 PM

Communists and Islamists all over the world think we’re idiots. We’re sitting on some of the richest reserves in the world for oil, gas and coal yet we buy from them.

They love using our money to crush us.

darwin on March 4, 2011 at 2:59 PM

American economy will continue to risk being held hostage to the fates of unsavory dictators and kleptocrats, and the regimes ….

you mean like the O’Bummer administration?

jsunrise on March 4, 2011 at 3:00 PM

“Everything is proceeding as I have foreseen.”

Lily on March 4, 2011 at 3:00 PM

Not only drill but build refineries! It is impossible, by bho and team, to do either. Other countries who hate our guts are getting rich and we sit here with gobs of oil we are not ‘allowed’ to drill for!
L

letget on March 4, 2011 at 3:02 PM

Is seem to remember the nightly news station running gas price rising atleast 3 times per broadcast during the Bush Years.

Now the news channels are focusing more important things like Charlie Sheen’s latest meltdown.

Priorities.

portlandon on March 4, 2011 at 3:03 PM

Rising gas prices are like porn to enviro-Marxists. They love seeing low income people squeezed for that last penny of spare cash.

darwin on March 4, 2011 at 3:04 PM

Is there any other country in the world that has its environmentalists with such a death grip on that country as ours?

Vanceone on March 4, 2011 at 3:04 PM

Regarding the photo, who has a 28 gallon tank?

MJBrutus on March 4, 2011 at 3:05 PM

I’m sorry to curse…but am I going to be freakin’ dead before we do the obvious and right thing of using our goddamm NATURAL RESOURCES !?! Why the hell did we buy Alaska in the first place…cuz it’s pretty !?!

birdhurd on March 4, 2011 at 3:05 PM

Is there any other country in the world that has its environmentalists with such a death grip on that country as ours?

Vanceone on March 4, 2011 at 3:04 PM

No. They want to kill us first.

darwin on March 4, 2011 at 3:07 PM

Inflation is not low. Food prices are skyrocketing, so quit lying, Tiny Timmie Tax Cheat.

Key West Reader on March 4, 2011 at 3:08 PM

Why the hell did we buy Alaska in the first place…cuz it’s pretty !?!

birdhurd on March 4, 2011 at 3:05 PM

that is the 144 yr old question, isn’t it.

upinak on March 4, 2011 at 3:08 PM

Regarding the photo, who has a 28 gallon tank?

MJBrutus on March 4, 2011 at 3:05 PM

Large trucks.

upinak on March 4, 2011 at 3:09 PM

Hey, Obama has that drilling ban going??

Oil Can on March 4, 2011 at 3:09 PM

The answer is to use ALL our food for fuel instead of just using corn.

darwin on March 4, 2011 at 3:09 PM

3.92 reg (87) 4.09 diesel.

Start your complaining now!

upinak on March 4, 2011 at 3:10 PM

Gird. Loins. You know the drill

Key West Reader on March 4, 2011 at 3:11 PM

We don’t need to tap. We need to drill — drill here, drill now, and drill everywhere we have reasonable chances of success.

But that would be good for America.

Not allowed.

(space reserved for Delta finger wagging babe)

MNHawk on March 4, 2011 at 3:12 PM

upinak@3:10,
We have gotten a rise also, but not that bad yet. It is 3.38 for regular here.
Have you planted your garden yet? We have the tomatoes in and have blooms on them already. I plan to do some green beans later.
L

letget on March 4, 2011 at 3:13 PM

Tuesday I gassed my wife’s Focus – $3.20/gallon.
This morning I gassed my Jeep – $3.30/gallon.

I work a part-time job with lots of Obeyme supporters who complain about “big oil” and the price of gas. I point out that their “god” is one of the main reasons gas is going up since we can’t drill for it here. They’d rather believe lies.

oldleprechaun on March 4, 2011 at 3:13 PM

Where I live, the cheapest gas is only $3.89.
I’ve seen gas as high as $4.12

Soon, I’m gonna need an EBT card for gas.

Kini on March 4, 2011 at 3:13 PM

4.09 regular
4.59 diesel

Chicago area and I just paid $40 bucks for a pair shorts that I paid $20 bucks for last year at this time.

Knucklehead on March 4, 2011 at 3:14 PM

Milk at $3.50/gal. Hamburger at $3.50/lb. I’ll bet pretty soon the state will figure out they need more tax revenue because their present dollars just won’t go far enough to pay their increased costs. Win The Future

a capella on March 4, 2011 at 3:15 PM

Besides basic free market advocacy, this is the central economic issue. Cheap oil brings prices down, across the board. Expensive oil drives prices up, across the board.

pugwriter on March 4, 2011 at 3:15 PM

I know gas prices aren’t going up because our economy is so strong.

Thanks, Obama.

John Deaux on March 4, 2011 at 3:16 PM

I’m so glad you mentioned Geithner’s stupid and shortsighted idea of tapping the strategic oil reserve, Ed. It’s like raiding your retirement account to pay for your mortgage when you have millions of dollars sitting on your kitchen table. But since you stupidly made a house rule not to ever use money that’s just sitting on tables, you forfeit all those funds. The strategic oil supply is for emergencies, it’s not there to cover a stupid and ineffective energy policy based on lies from the EPA.

Weight of Glory on March 4, 2011 at 3:17 PM

Geithner wants to argue that tapping the strategic reserve is a policy, when in fact it’s a short-term desperation tactic that will do next to nothing for even near-term flexibility for America’s energy needs.

That comment by Geithner really p-ssed me off. You wanna know why this country is going into the sh-tter? It’s because we don’t make anything anymore! We just rely on imported goods, cheap labor from Mexico, and continuously hitting up the producers(aka “the rich”) until they’re completely tapped out.

What exactly is the long-term plan for this nation’s economy by the left? Do they think green jobs are just gonna magically appear out of thin air one day and fix everything? We’re sitting trillions of dollars worth of domestic energy sources, yet we have a government that won’t let us touch any of it. So now Geithner thinks we can just use the strategic petroleum reserve as a temporary fix? For how long, Timmy? What if it runs out? And what if a real emergency hits? Then what’s your plan?

Doughboy on March 4, 2011 at 3:18 PM

upinak on March 4, 2011 at 3:10 PM

Just filled up. $4.19 for diesel here in CT. 32.35 gallons = $135.84. The attended and I were betting when it hits $5.00. Both of us guessed by mid-May. Regular unleaded was $3.79.

CTSherman on March 4, 2011 at 3:18 PM

Another problem with the high food prices, the feds are using corn, the stuff we eat and feed livestock, to make fuel. This is about as stupid as not drilling for oil, IMO.
L

letget on March 4, 2011 at 3:18 PM

Just the treat of drilling could bring prices down. wouldn’t that slanty drilling proposed for ANWAR be considered “green engergy”??

Rich on March 4, 2011 at 3:19 PM

I work a part-time job with lots of Obeyme supporters who complain about “big oil” and the price of gas. I point out that their “god” is one of the main reasons gas is going up since we can’t drill for it here. They’d rather believe lies.

oldleprechaun on March 4, 2011 at 3:13 PM

Yep, I constantly have to point out to my 0bama-supporting facebook friends that 0bama’s policies are largely to blame for this. They blame it on the unrest in the middle east. I have to remind them that if we had a sane energy policy, we wouldn’t be so dependent on foreign oil, and the events taking place halfway around the world would not have such an impact.

They just don’t want to hear the truth.

UltimateBob on March 4, 2011 at 3:19 PM

Knucklehead on March 4, 2011 at 3:14 PM

$4.59? Damnn!!

CTSherman on March 4, 2011 at 3:20 PM

Just the treat of drilling could bring prices down. wouldn’t that slanty drilling proposed for ANWAR be considered “green engergy”??

Rich on March 4, 2011 at 3:19 PM

I think you meant threat, not treat. :-)

I agree.

UltimateBob on March 4, 2011 at 3:20 PM

Otherwise, the American economy will continue to risk being held hostage to the fates of unsavory dictators and kleptocrats, and the regimes that eventually replace them.

Obama five-years-plan in full action

Schadenfreude on March 4, 2011 at 3:22 PM

If anyone’s interested, here’s a tool for forecasting what the U.S. unemployment rate will be two years from now, given today’s average gasoline prices at the pump. Anything sustained over $3.60 per gallon means a higher unemployment rate than today’s 8.9%.

ironman on March 4, 2011 at 3:23 PM

Have you planted your garden yet? We have the tomatoes in and have blooms on them already. I plan to do some green beans later.
L

letget on March 4, 2011 at 3:13 PM

nope. 0 at night 20 during the day and 70pmh gusts. Can’t plant for a few more weeks at least. :)

upinak on March 4, 2011 at 3:24 PM

Otherwise, the American economy will continue to risk being held hostage to the fates of unsavory dictators and kleptocrats, and the regimes that eventually replace them.

With our without this current (and all too predictable) crisis, we’re being held hostage by our own politicians and the enviro-utopian lobbyists (who also screwed us with the ethanol schemes). This is going to trickle down to mortgage delinquencies again which is not only senseless, it’s heartless.

As for Geithner’s claims about inflation, he must not have tried to shop for groceries lately.

Buy Danish on March 4, 2011 at 3:24 PM

WHY do they keep upping CAFE standards and not just switch us to natural gas for cars???? Several South American countries already use NG for cars, so the auto manufactures already have designs to support the platform. They could change their production lines fairly easily. Gas stations would have to be allowed a few years to accommodate this, but it wouldn’t be that hard.

We could be energy independent within this decade if we went this route. We have TONS of NG. Plus, it emits 1/3 to 1/2 the carbon that crude based petroleum does, if that matters to you.

This is SO EASY, and yet we do nothing that makes logical sense.

lizzie beth on March 4, 2011 at 3:25 PM

Communists and Islamists all over the world think we’re idiots. We’re sitting on some of the richest reserves in the world for oil, gas and coal yet we buy from them.

They love using our money to crush us.

darwin on March 4, 2011 at 2:59 PM

And as soon as they crush us and take over, they will start drilling what used to be our oil.

PrettyD_Vicious on March 4, 2011 at 3:26 PM

Just filled up. $4.19 for diesel here in CT. 32.35 gallons = $135.84. The attended and I were betting when it hits $5.00. Both of us guessed by mid-May. Regular unleaded was $3.79.

CTSherman on March 4, 2011 at 3:18 PM

Hubby has a ford f250 with a 35 gallon tank. It is a freaking monster. We don’t drive it unless it is something major.

He has a old beater that he loves to put around wasilla in, I drive a ford ranger 4×4 as it is the most cost effective. I have a feeling we are going to keep that truck as long as possible. Especially since it is a stick.

upinak on March 4, 2011 at 3:26 PM

Milk at $3.50/gal. Hamburger at $3.50/lb. I’ll bet pretty soon the state will figure out they need more tax revenue because their present dollars just won’t go far enough to pay their increased costs. Win The Future

a capella on March 4, 2011 at 3:15 PM

Butter 3.99 a pound, coffee $5 per pound, cooking oil $10 for 2 gal’s; bread $3.29, bacon $6 per pound, produce? Fuggeddaboudit.

Went to Sam’s last weekend and filled up a Jeep with tons of food and provisions. Going back tomorrow as well.

Key West Reader on March 4, 2011 at 3:27 PM

The news today…”In reports that hearkened back to the massive amounts of media criticism foisted on former President George W. Bush for the rise in energy prices following Hurricane Katrina, all the major electronic news media outlets, including normally Administration friendly MSNBC, blasted the Administration’s failure to take any sort of action to alleviate the pain that average Americans are suffering at the gas pump. With the price per barrel passing $103 today, MSNBC’s Chris Matthews placed the blame squarely in the lap of President Obama for his lack both of a coherent long term energy policy and his failure in leadership amongst America’s Allies in the Middle East.”

And then I woke up and relaized I had only been dreaming.

sdd on March 4, 2011 at 3:27 PM

Just the treat of drilling could bring prices down. wouldn’t that slanty drilling proposed for ANWAR be considered “green engergy”??

Rich on March 4, 2011 at 3:19 PM

ANWR sweetie, Alaska National Wildlife Refuge. There is no war in ANWR…. yet.

upinak on March 4, 2011 at 3:28 PM

a capella on March 4, 2011 at 3:15 PM
Key West Reader on March 4, 2011 at 3:27 PM

you two are going to make me cry.

upinak on March 4, 2011 at 3:29 PM

you two are going to make me cry.

upinak on March 4, 2011 at 3:29 PM

No, we’re gonna make Obama cry before his term is up! That dirty bastige!

Oh, we also bought 125 packets of seeds to grow our own vegetables since the al gore freeze of 2010-2011 is responsible for the death of crops everywhere.

Key West Reader on March 4, 2011 at 3:33 PM

you two are going to make me cry.

upinak on March 4, 2011 at 3:29 PM

At least in Alaska, you can stock your freezer with fresh salmon and halibut. I went there in 2006 and in 1 week, had over 150 pounds of fresh salmon and halibut.

PrettyD_Vicious on March 4, 2011 at 3:36 PM

You haven’t seen anything yet. Just you wait until June………

Vashta.Nerada on March 4, 2011 at 3:36 PM

Man…. Maybe it’s time to bring back the horse carriages! I mean, sure, it’s slow… but hay is probably much cheaper than petrol. Plus, the “emissions” fertilize the ground. If I were a farmer, I’d be at least looking into horse power. Dedicate a few acres to hay and you can have horse power that doesn’t cost more than medical bills. And horses are cheap right now–too many of them. Maybe not draft horses, I’m not sure.

I mean, for a local trip, moving cargo, etc–why wouldn’t horse power be cheaper now? More time, yeah… but couldn’t there be a case for it?

Vanceone on March 4, 2011 at 3:38 PM

“I won’t have to worry about putting gas in my car, I won’t have to worry about paying my mortgage”
Thanks Obama.

Electrongod on March 4, 2011 at 3:39 PM

I wonder if the liberal smugness feels so good at $5 a gallon?

joeindc44 on March 4, 2011 at 3:40 PM

Gird. Loins. You know the drill

Key West Reader on March 4, 2011 at 3:11 PM

Bend. Spread. Get ready for the drill.

catmman on March 4, 2011 at 3:40 PM

Dont’ forget, printing money devalues the currency… exacerbating the problem, as the diminished purchasing power of the dollar causes a price rise all its own.

knob on March 4, 2011 at 3:41 PM

Vanceone on March 4, 2011 at 3:38 PM

Using a bike or two would be cheaper and easier. U/sing it the way your intending even, add a couple of carts…maybe not able to haul as much, but definitely easier than a horse.

Unless of course you already live in the country and have this resource available to you…

catmman on March 4, 2011 at 3:42 PM

“I won’t have to worry about putting gas in my car, I won’t have to worry about paying my mortgage”
Thanks Obama.

Electrongod on March 4, 2011 at 3:39 PM

Well, you forgot the last part of her quote: “If I help him, he’s gonna help me.”

So help Obama. Then he’ll help you.

Doughboy on March 4, 2011 at 3:42 PM

Man…. Maybe it’s time to bring back the horse carriages! I mean, sure, it’s slow… but hay is probably much cheaper than petrol. Plus, the “emissions” fertilize the ground. If I were a farmer, I’d be at least looking into horse power.
Vanceone on March 4, 2011 at 3:38 PM

Jethro Tull were ahead of their time….

http://www.youtube.com/watch?v=FgAfSQLJlAM

Vashta.Nerada on March 4, 2011 at 3:43 PM

Man…. Maybe it’s time to bring back the horse carriages! I mean, sure, it’s slow… but hay is probably much cheaper than petrol. Plus, the “emissions” fertilize the ground. If I were a farmer, I’d be at least looking into horse power. Dedicate a few acres to hay and you can have horse power that doesn’t cost more than medical bills. And horses are cheap right now–too many of them. Maybe not draft horses, I’m not sure.

I mean, for a local trip, moving cargo, etc–why wouldn’t horse power be cheaper now? More time, yeah… but couldn’t there be a case for it?

Vanceone on March 4, 2011 at 3:38 PM

The sad thing is you probably could make a case, and a very good one at that.

Also: cars won’t replace themselves over time if you get a boy and a girl car, you can only repair existing ones.

Dark-Star on March 4, 2011 at 3:43 PM

Are horses available? Yeah, the BLM is always trying to get people to adopt Mustangs for practically nothing.

Thing about horses…. usually you can feed them along the way. Sure they drink water, but it’s probably a de minimis cost.

The Pony express took what, 20-30 days to get a letter from St. Louis to San Francisco? Probably about as good as the Post Office now. For country living with it’s long distances and corresponding high gas costs, I think there is a real case for bringing back the horse. Especially as filling up your car costs 60 bucks a week. It sure as heck doesn’t cost 60 dollars a week to feed a couple of horses.

Vanceone on March 4, 2011 at 3:51 PM

darn you, Booooossssshhhhhhhhhhhhh

joeindc44 on March 4, 2011 at 3:52 PM

The only drilling I’ve seen recently, is in an alleged sexual ed class at a university. *sigh*

capejasmine on March 4, 2011 at 3:56 PM

I have an 03′ GMC 2500 HD with an LB7 engine. Great engine once they figured out the injector problem. I get 22mpg if I feather the throttle. Towing, I still get over 15mpg. That is a good 30 – 40% better than most diesel models between 2006 and 2010.

The problem with the newer models are the emission controls. When it comes to diesel and for that matter natural gas, this country has had it’s head up it’s collective arse for a long time.

CTSherman on March 4, 2011 at 3:56 PM

My take.

kingsjester on March 4, 2011 at 3:59 PM

Consistent Dem trick…

Of course they are hoping the strategic usage tampers prices, but in order to refill that reserve – you better hope gas goes south of $2, just to break even.

It wont, so we will use a strategic reserve for a short term band aid, depleting it in the process, which may or may not even effect the cost. Now factor in the potential of a hurricane hitting a Gulf refinery…

I could see a $5 a gallon price tag, with 50% less strategic reserves – and a 50% markup to replace said reserve.

THEN we are really at the mercy of OPEC…

Odie1941 on March 4, 2011 at 4:01 PM

Bush, Cheney and their oil buddies again!

mankai on March 4, 2011 at 4:06 PM

When wealth is concentrated in one sector (in this case oil), the entire economy suffers… see also: tax increases.

mankai on March 4, 2011 at 4:07 PM

We can’t drive our SUVs and eat as much as we want and keep our homes on 72 degrees at all times … and then just expect that other countries are going to say OK. That’s not leadership. That’s not going to happen.

~Barry Soetoro

Rebar on March 4, 2011 at 4:08 PM

Regarding the photo, who has a 28 gallon tank?

MJBrutus on March 4, 2011 at 3:05 PM

My ’06 Chevy diesel has a 32 gallon tank. It cost me $100 yesterday to fill up.

txsurveyor on March 4, 2011 at 4:08 PM

What a bang up job the dept of energy has done for us. I beleive the mandate for it was to wean us off foreign dependance. Ultimatly I have come to beleive that there never was nor is there any serious effort to have us be energy dependant, the trade agreements and policy favours in our manufactured need for their oil is somehow more important than our self sufficency. The current administrations reasons might be more neferious but the result will ultimatly be the same economy halting 3rd world status we could end up as.

Koa on March 4, 2011 at 4:14 PM

Of course they are hoping the strategic usage tampers prices, but in order to refill that reserve – you better hope gas goes south of $2, just to break even.

It wont, so we will use a strategic reserve for a short term band aid, depleting it in the process, which may or may not even effect the cost. Now factor in the potential of a hurricane hitting a Gulf refinery…

Odie1941 on March 4, 2011 at 4:01 PM

The SPI doesn’t hold enough to make any appreciable impact in moderating prices. One of the few useful purposes for it would be after a hurricane hit the Gulf refineries.

Vashta.Nerada on March 4, 2011 at 4:20 PM

Does anyone believe anything Geithner says? Bueller? Bueller?

GarandFan on March 4, 2011 at 4:21 PM

$28 for 10 gallons like in the picture….ahhhh the good old days. Mid-Feb. Now in my neck of the woods it’s about $34-36.

angryed on March 4, 2011 at 4:38 PM

oops never mind. It’s $100 for 28 gallons. Misread that.

angryed on March 4, 2011 at 4:40 PM

Maybe when oil supply gets so low there isn’t any fuel for AF-1 or his SUV convoy, 0 might consider drilling.

Oleta on March 4, 2011 at 4:42 PM

We need to recognize the logic in not using our reserves to drop the price of gas from 3.00 to 2.90 a gallon, so we have it ready in case the shit really hits the fan.

Rainsford on March 4, 2011 at 4:46 PM

“Under my plan, energy prices will necessarily skyrocket.”

Hmmmm… where have I heard that before?

UltimateBob on March 4, 2011 at 2:58 PM

The Obama Doctrine

darwin-t on March 4, 2011 at 4:59 PM

Regarding the photo, who has a 28 gallon tank?

MJBrutus on March 4, 2011 at 3:05 PM

My Suburban

darwin-t on March 4, 2011 at 5:00 PM

Path to a better future:

1. Impeach

2. Drill

3. Prosper!!!

landlines on March 4, 2011 at 5:21 PM

Of course they are hoping the strategic usage tampers prices, but in order to refill that reserve – you better hope gas goes south of $2, just to break even.

It wont, so we will use a strategic reserve for a short term band aid, depleting it in the process, which may or may not even effect the cost. Now factor in the potential of a hurricane hitting a Gulf refinery…

Odie1941 on March 4, 2011 at 4:01 PM
The SPI doesn’t hold enough to make any appreciable impact in moderating prices. One of the few useful purposes for it would be after a hurricane hit the Gulf refineries.

Vashta.Nerada on March 4, 2011 at 4:20 PM

True, hence the disaster IF they used it now.

Odie1941 on March 4, 2011 at 5:28 PM

Americans should be so lucky. I’m paying the equivalent of $5 per gallon now in Sydney, Autralia.

Crux Australis on March 4, 2011 at 5:32 PM

s/b Australia

Crux Australis on March 4, 2011 at 5:33 PM

In re National Energy Policy, paraphrasing JFK:

It shall be the policy of this nation to encourage the development to the fullest extent any and all energy reserves, including oil, gas, coal and nuclear, for the purpose of furthering the nourishment, development and expansion of the United States economy.

It shall be the policy of this nation to encourage the development of new and more efficient refineries for oil and gas.

It shall be the policy of this nation to encourage the building of nuclear power plants to offset those fired by oil, gas or coal.

It shall be the policy of this nation to adhere to the best environmental practices available, however, environmental concerns shall not be a barrier to development and production but rather as a guide to environmental stewardship.

It shall be the policy of this nation to never undertake efforts to regulate the use of any crop that can be used directly or substituted for food stuffs for the production of ethanol, or to cause by regulation the use of inputs of agriculture for the purpose of the production of ethanol.

It shall be the goal of this nation to wean itself entirely from dependence upon oil from hostile powers;

It shall be the goal of this nation to be a net exporter of petroleum and petroleum distillates.

I think that pretty much covers it. And to think that I didn’t have to go to Yale, Harvard, Georgetown or Chicago – just good old UMass, where instead of being taught to overthrow the government, we just drank, chased girls and occasionally went to class – like good Americans.

turfmann on March 4, 2011 at 5:40 PM

Geithner wants to argue that tapping the strategic reserve is a policy, when in fact it’s a short-term desperation tactic that will do next to nothing for even near-term flexibility for America’s energy needs.
That comment by Geithner really p-ssed me off. You wanna know why this country is going into the sh-tter? It’s because we don’t make anything anymore! We just rely on imported goods, cheap labor from Mexico, and continuously hitting up the producers(aka “the rich”) until they’re completely tapped out.

What exactly is the long-term plan for this nation’s economy by the left? Do they think green jobs are just gonna magically appear out of thin air one day and fix everything? We’re sitting trillions of dollars worth of domestic energy sources, yet we have a government that won’t let us touch any of it. So now Geithner thinks we can just use the strategic petroleum reserve as a temporary fix? For how long, Timmy? What if it runs out? And what if a real emergency hits? Then what’s your plan?

Doughboy on March 4, 2011 at 3:18 PM

I recall the 80′s when we started outsourcing the manufacturing of products to Taiwan. The issue with products from Taiwan was that the quality was not good so American manufacturers could compete somewhat; sell the lower quality imports and still manufacture a higher quality product. When we started outsourcing to China, the quality was good, and companies had to purchase most all products from China in order to be competitive. Most manufacturing plants now only warehouse imported products and parts.

Someone much smarter than I must know when and how this started to happen….and most importantly, “why?”

Amjean on March 4, 2011 at 6:22 PM

I figure tax bracket creep is an intentional goal of most politicians.

theperfecteconomist on March 4, 2011 at 7:17 PM

When our enemies take over America because we slashed our defense budget to save money, then America’s oil will be utilized-but not by us.

KW64 on March 4, 2011 at 9:51 PM

Drill Obama’s head to use the fantastic vacuum in it for energy. When that runs out in 10 years we can tap Pelosi’s head.

{+_+}

herself on March 5, 2011 at 4:16 PM

Taking away oil to spur the production of the mythical “green energy alternatives” would have been like killing half the horses and burning half the buggys to create demand for the automobile.
‘Sides…this really doesn’t enter in to it. What’s happening in the broader picture is the weakening of America in every way possible.

Army Brat on March 7, 2011 at 2:44 AM