Strategic-reserve release has its predictable effect

posted at 12:15 pm on July 6, 2011 by Ed Morrissey

The Obama administration, stung by complaints of passiveness in the face of rapidly-rising gas and food prices, responded two weeks ago by releasing 30 million barrels of oil from the Strategic Petroleum Reserve.  Prices dropped five dollars a barrel within five days, but as CNBC reports today, that price decline was short-lived:

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. …

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.

In other words, the release did nothing to solve the underlying issues of supply and demand, as Jazz Shaw predicted on June 23rd.  And why would it?  The amount released equals the amount used in America in 36 hours.  It represents the amount imported by America in less than three days.  It’s just another gimmick intended to get a momentarily positive report in a market that has long-term crises facing it.

By the way, the US will eventually have to replace that released amount of oil.  What happens when we start buying oil in the market to do so?  Prices will go up even further as demand increases and supply remains constant.  It will likely cost us more than it did to buy the released oil in the first place.  This is basic economics, not terribly difficult to grasp.

The only way to address the energy problem in the US is to start producing more reliable domestic supply.  We have vast reserves of oil, coal, and natural gas that would power the US for decades if not centuries and create hundreds of thousands of direct, high-paying jobs if we had the will to extract and use it.  Having that kind of long-term “all of the above” strategy would not only lower fuel prices in the long run at home, the direct and indirect job creation from exploration and extraction would boost the economy as well, while the reliable energy stream would attract investors to American markets to open or expand operations.  That would touch off a hiring boom across the economy that would help alleviate the housing-market crises and stabilize American finance.

That is what an actual economic and energy policy would look like.  Instead, the White House is giving us the Gimmick of the Month.

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Meadowlarkenomics

faraway on July 6, 2011 at 12:17 PM

We have more fossil fuel reserves than any other country.

Do I need to say anymore?

darwin on July 6, 2011 at 12:18 PM

This is basic economics, not terribly difficult to grasp.

Racist.

Rebar on July 6, 2011 at 12:19 PM

The only way to address the energy problem in the US is to start producing more reliable domestic supply. We have vast reserves of oil, coal, and natural gas that would power the US for decades if not centuries and create hundreds of thousands of direct, high-paying jobs if we had the will to extract and use it.

You know that, I know that, pretty much everyone else in this country knows that!

But in the hermetically sealed universe of Barack Hussein Obama……….well, you know.

pilamaye on July 6, 2011 at 12:19 PM

This morning on the way to work I noticed that the price of regular at one station (a QuickTrip) had jumped from $3.34/gal, to $3.49/gal. A nearby RaceTrac was still at $3.39, but I suspect they haven’t bought gas in a couple of days, and that theirs will go up, too.

Good job, Barry!

Ward Cleaver on July 6, 2011 at 12:20 PM

That is what an actual economic and energy policy would look like. Instead, the White House is giving us the Gimmick of the Month.

It’s all they’ve got. Gimmicks.

ladyingray on July 6, 2011 at 12:23 PM

By the way, the US will eventually have to replace that released amount of oil

Bary won’t replace it, he’ll dump what’s left in October 2012.

Knucklehead on July 6, 2011 at 12:23 PM

unexpended.

the_nile on July 6, 2011 at 12:23 PM

What they taught me at U of Chicago is to buy high and sell low.

MNHawk on July 6, 2011 at 12:23 PM

Nice bit, Ed. Grammar police say next time, use passivity in place of passiveness.

Freelancer on July 6, 2011 at 12:23 PM

Gas just got around $4/gallon in my SOCAL neighborhood… Can’t wait for it to start going up again…

Khun Joe on July 6, 2011 at 12:24 PM

Economic illiteracy is the foundation of Modern Liberalism.

visions on July 6, 2011 at 12:24 PM

More stupidity from Obama.

He doesn’t understand Econ 101.

Hell, at this point I would be impressed if he could spell it.

tetriskid on July 6, 2011 at 12:26 PM

The rebound was easy to predict. I simply rescheduled the pickup and sale of my oil by 2 weeks. I still wonder what Obama hoped to accomplish by this.

Jocundus on July 6, 2011 at 12:27 PM

Way to sell high and buy…higher, Obama.

TexasDan on July 6, 2011 at 12:28 PM

What happens when we start buying oil in the market to do so? Prices will go up even further as demand increases and supply remains constant. It will likely cost us more than it did to buy the released oil in the first place. This is basic economics, not terribly difficult to grasp.

Yeah, I can’t really understand how the smartest administration in the history of mankind is unable to figure these things out.

Chip on July 6, 2011 at 12:28 PM

Meadowlarkenomics

faraway on July 6, 2011 at 12:17 PM
ROFLMAO! It took me a min to get it.
Dats Waacist!
funny as hell but still WAAACIST.

ColdWarrior57 on July 6, 2011 at 12:32 PM

Sorta on topic, related to reserves of commodities:
I heard from a little agriculture bird that the US keeps on hand ~2 years worth of wheat.
IT’s almost GONE.
And the flooding all over the mid west & upper Great Plains + drought & too much rain (in Canada, too-big wheat producers) has not allowed farmers to plant wheat acres.
So let’s see what happens to wheat & everything made from it.

Badger40 on July 6, 2011 at 12:34 PM

This morning on the way to work I noticed that the price of regular at one station (a QuickTrip) had jumped from $3.34/gal, to $3.49/gal. A nearby RaceTrac was still at $3.39, but I suspect they haven’t bought gas in a couple of days, and that theirs will go up, too.

Good job, Barry!

Ward Cleaver on July 6, 2011 at 12:20 PM

I thought like that until I started tracking Brent and West Texas crude futures prices, just for giggles and grins. When the futures prices went up, the price at the pump went up, sometimes multiple times a day. Price drops do not have such an immediate affect, although, they do change eventually.

I did comment the other day that after Barry’s presser, gas went up anywhere from six to nine cents a gallon. Coincidence? Nah.

odat on July 6, 2011 at 12:35 PM

It did succeed. It pissed the speculators off. Me thinks they will be out for blood now.

reddevil on July 6, 2011 at 12:35 PM

affect s/b effect

odat on July 6, 2011 at 12:37 PM

Will they actually replace it or blame it on the GOP that they can’t

cmsinaz on July 6, 2011 at 12:37 PM

Obama is a jinx.
Everything he touches turns to do-do.

albill on July 6, 2011 at 12:37 PM

More stupidity from Obama.

He doesn’t understand Econ 101.

Hell, at this point I would be impressed if he could spell it.

tetriskid on July 6, 2011 at 12:26 PM

It’s a quandary for libs because they either have to admit this jug eared yutz can’t really add 2+2 and get 4 or he’s doing this on purpose (crash the economy to make the fed indispensable)…

It’s one or the other.

Tim Zank on July 6, 2011 at 12:37 PM

I hate that high prices are eating up my family’s budget, but things have got to really hurt these Obamorons in their wallets b4 they will understand that he is an effin idiot and not to be trusted w/the keys to the kingdom again!

JAM on July 6, 2011 at 12:37 PM

By the way, the US will eventually have to replace that released amount of oil.

Ed, there you go again. You’re assuming Barry and the Harvard faculty staff that are his office plan to replenish it. I say it was done to purposefully deplete it so as to cripple us for hurricane season and/or the next attack.

SouthernGent on July 6, 2011 at 12:38 PM

Yep. Looks like we just sold low. How stupid is that?

Count to 10 on July 6, 2011 at 12:38 PM

Silly Rabbits!

You just don’t “get” the President.

Why?

It’s simple.

You see, HE is so brilliant, so wise, so pragmatic, calm, cool and cerebral, that you dolts will never understand him. In fact, even David Brooks stated once that the President’s intellect is “fluorescent”!

That is, it is so BLINDING, that us “little people” cannot grasp it.

You know what you lack?

TRUST.

Trust in the ALMIGHTY “O”.

Opposite Day on July 6, 2011 at 12:39 PM

Average cost of SPR barrel in supply… $29.76. Current Barrel: $96.81

DOE – Fossil Energy – SPR

Odie1941 on July 6, 2011 at 12:40 PM

The only way to address the energy problem in the US is to start producing more reliable domestic supply.

You’re preachin’ to the choir, Ed, and DOTUS doesn’t know how to sing.

GrannyDee on July 6, 2011 at 12:40 PM

I thought use was down. Aren’t the high prices more of a reflection of lack of productivity?

Cindy Munford on July 6, 2011 at 12:41 PM

Drill Baby Drill!!!

tencole on July 6, 2011 at 12:42 PM

Bush’s fault.

txag92 on July 6, 2011 at 12:44 PM

Yeah, but one has to look at the bright side; we now have 30 million bbls less in reserve at the start of hurricane season.

Wait, what?

Vashta.Nerada on July 6, 2011 at 12:46 PM

Obama — all the economic knowledge of your garden-variety affirmative-action Harvard Law student. Who expected more than that and why?

Jaibones on July 6, 2011 at 12:50 PM

Two words for Obama’s attempt at cutting oil and gasoline prices:

Surprising Impotence

ironman on July 6, 2011 at 12:51 PM

People, people, relaaaax. Prices are just necessarily skyrocketing.

NickelAndDime on July 6, 2011 at 12:52 PM

It’s a quandary for libs because they either have to admit this jug eared yutz can’t really add 2+2 and get 4 or he’s doing this on purpose (crash the economy to make the fed indispensable)…

It’s one or the other.

Tim Zank on July 6, 2011 at 12:37 PM

This is the only comment that seems on target. It’s not that this administration is full of morons (it is). It’s that they are doing this intentionally to bring about “change”. Not the change we might think, though. This administration is Manchurian in nature. The hopes and desires of this administration reflect the consequences we all now live with. Their mouthpieces (Krugman, Brooks, et al) have been telling us in plain english for several months. We are literally dealing with an overthrow of our system from within.

HomeoftheBrave on July 6, 2011 at 12:53 PM

Obama — all the economic knowledge of your garden-variety affirmative-action Harvard Law student. Who expected more than that and why?

Jaibones on July 6, 2011 at 12:50 PM

crr6 spent last night reminding us Obama was offered a lecturer position that was on track to get tenure.

Bet you feel silly now.

Chuck Schick on July 6, 2011 at 12:53 PM

Barack H. Obama, Super Genius
“Oilitas Interuptus Maximus”

Hening on July 6, 2011 at 12:55 PM

Cash for Clunkers Pimp, redux

Schadenfreude on July 6, 2011 at 12:55 PM

Obama really doesn’t have a grasp of even high school economics.

Dear Heaven, we’re boned.

Gus Bailey on July 6, 2011 at 12:57 PM

By the way, the US will eventually have to replace that released amount of oil. What happens when we start buying oil in the market to do so? Prices will go up even further as demand increases and supply remains constant. It will likely cost us more than it did to buy the released oil in the first place. This is basic economics, not terribly difficult to grasp.

He might opt to replace that released oil with wind farms and solar panels. That way he can have reserve power for the fleet of Chevy Volts our military might be forced to buy.

mizflame98 on July 6, 2011 at 12:58 PM

Obama — all the economic knowledge of your garden-variety affirmative-action Harvard Law student. Who expected more than that and why?

Jaibones on July 6, 2011 at 12:50 PM
crr6 spent last night reminding us Obama was offered a lecturer position that was on track to get tenure.

Bet you feel silly now.

Chuck Schick on July 6, 2011 at 12:53 PM

crr6 forgot to mention the faculty gave a resounding “no” to the offering once it was made, knowing he was an embarrassment to their trade and university, hence Obama’s departure to another AA guaranteed “job.”

Odie1941 on July 6, 2011 at 12:58 PM

DOTUS……..

……name the industry or way of life that will still be standing by 1-20-13?

565 days to go.

PappyD61 on July 6, 2011 at 12:58 PM

I want to see an investigation of the price of oil sold from the SPR and who it was sold to. Such a tiny release makes no sense, even little Bammie’s leftover dimwit economic team could have told him that. I suspect the sale was to benefit some FOO, perhaps the Nazi stooge George Soros who we know is heavily invested in the oil business.

When nothing else makes sense, follow the money.

slickwillie2001 on July 6, 2011 at 12:59 PM

As I said last month, just be glad the Sooper Geniuses didn’t come close to doing what they’d originally been scheming

tree hugging sister on July 6, 2011 at 12:59 PM

How to cut fuel and food prices by 50%

End all subsidies and the EPA.

And yes end food stamps. When you have such a huge number of people that are not price sensitive it drives prices up.
Basic economics.

esnap on July 6, 2011 at 12:59 PM

mizflame98 on July 6, 2011 at 12:58 PM

LMAO!

crr6 forgot to mention the faculty gave a resounding “no” to the offering once it was made, knowing he was an embarrassment to their trade and university, hence Obama’s departure to another AA guaranteed “job.”

Odie1941 on July 6, 2011 at 12:58 PM

Really? I didn’t know that. How delicious. Where is info on that to be found?

Badger40 on July 6, 2011 at 1:01 PM

When nothing else makes sense, follow the money.

slickwillie2001 on July 6, 2011 at 12:59 PM

I’m sure it’s all legit.
Like when Hillary made all that cash in cattle futures.

Badger40 on July 6, 2011 at 1:01 PM

The SPR is generally replenished from oil from the gulf. The very wells Obama has shut down.

pat on July 6, 2011 at 1:05 PM

That is what an actual economic and energy policy would look like. Instead, the White House is giving us the Gimmick of the Month.

It’s all they’ve got. Gimmicks.

ladyingray on July 6, 2011 at 12:23 PM

When you were raised on gimmicks, educated on gimmicks, and enabled with gimmicks…

… what else should we expect from this administration?

Lawrence on July 6, 2011 at 1:05 PM

Crude Oil prices are racist.

search4truth on July 6, 2011 at 1:16 PM

MSNBC and the NYT called it a stroke of genius as did some place called Short Hills capital. But from CNBC:

“The release of oil from the SPR was utter and complete nonsense,” said Dennis Gartman, long-time commodities trader and author of the daily The Gartman Letter. “Most of the SPR is low quality, heavy, sulfurous crude that no one wants. This was purely a political ploy.”

Are the syndicators striking again?

Is He a genius or what?

I need to know before Novemebr of 2012.

IlikedAUH2O on July 6, 2011 at 1:17 PM

To the enviro-wackos who are blocking us from drilling here:
Is it better for the environment to drill in Saudi Arabia–where they probably don’t have our expertise or passion for the ecology–& then ship it halfway around the world with polluting ships that have a risk of spillage all along the way?
*facepalm*

itsnotaboutme on July 6, 2011 at 1:20 PM

LMAO!

crr6 forgot to mention the faculty gave a resounding “no” to the offering once it was made, knowing he was an embarrassment to their trade and university, hence Obama’s departure to another AA guaranteed “job.”

Odie1941 on July 6, 2011 at 12:58 PM
Really? I didn’t know that. How delicious. Where is info on that to be found?

Badger40 on July 6, 2011 at 1:01 PM

Doug Ross has written extensively about it – first came to light in 2008 with Hillary’s Campaign.

Doug Ross

Others have also referenced the chronology of events: Obama applied for adjunct professor, was rejected; of which his magical job of teaching 1 class a year arose. Within that timeframe – U of Chicago Law make the claim they offered the position several times to Obama, but he rejected them. Interesting how he desired a position, yet once was backdoored in – couldnt care about accepting the offer.

Clearly – I am from the “AA idiot in the WH was pushed through every step of his “education”, including Islam – Harvard” school, so fully admit my bias – but many other faculty have made the claim how lazy, unmotivated and flat out useless Obama was on a campus that – at the time (pretty important here) was going from Top 50 in rankings to Top 20 in Law School rankings. There is pride and money on the line, considering you are competing against Stamford, Harvard, Yale, Princeton, etc… for the best and brightest to enhance those rankings.

So Obama apparently got a job after being rejected, then rejected the very job he supposidly wanted, only to hang around for a byline to run for President.

His absence of anything tangible; whether written, argued or published in the field of Law has been a glaring joke on the American people.

Odie1941 on July 6, 2011 at 1:27 PM

I don’t know how many readers here follow Powerline, if you don’t, you should. They wrote about this yesterday, and here’s a quoted excerpt from someone in the oil industry that wrote to them yesterday:

* The SPR’s release of 30 million barrels of oil was sold to oil refiners and traders at more than $10/bbl BELOW market. Can the US taxpayer afford the $300mm subsidy?

* Does the public know that prices are the same now, less than two weeks since the SPR announcement? Was this money well spent?

– WTI closed at $95.41/barrel on June 22 (the day before the SPR announcement), and is currently $96.15/barrel

– CME Gasoline closed at $2.97/gallon and is currently $2.97/gallon

* The likely outcome of cheap oil released in the US is cheap oil supplies to China’s SPR as oil that was needed in the US is diverted to other places around the globe. China continues to build their SPR.

* Since June 22, the dollar is weaker compared to a basket of currencies. So, any good that additional supplies to the market does has been offset by continued weakness in the dollar (as the market loses confidence that this government will do what it needs to do to bring our fiscal house in order).

jwehman on July 6, 2011 at 1:30 PM

crr6 forgot to mention the faculty gave a resounding “no” to the offering once it was made, knowing he was an embarrassment to their trade and university, hence Obama’s departure to another AA guaranteed “job.”

Odie1941 on July 6, 2011 at 12:58 PM

Really? I didn’t know that. How delicious. Where is info on that to be found?

Badger40 on July 6, 2011 at 1:01 PM

To be (a lawyer) or not to be…

I spent some time with the highest tenured faculty member at Chicago Law a few months back, and he did not have many nice things to say about “Barry.” Obama applied for a position as an adjunct and wasn’t even considered. A few weeks later the law school got a phone call from the Board of Trustees telling them to find him an office, put him on the payroll, and give him a class to teach. The Board told him he didn’t have to be a member of the faculty, but they needed to give him a temporary position. He was never a professor and was hardly an adjunct.

The other professors hated him because he was lazy, unqualified, never attended any of the faculty meetings, and it was clear that the position was nothing more than a political stepping stool. According to my professor friend, he had the lowest intellectual capacity in the building. He also doubted whether he was legitimately an editor on the Harvard Law Review, because if he was, he would be the first and only editor of an Ivy League law review to never be published while in school (publication is or was a requirement).

slickwillie2001 on July 6, 2011 at 1:30 PM

Chuck Schick on July 6, 2011 at 12:53 PM

crr6 forgot to mention the faculty gave a resounding “no” to the offering once it was made, knowing he was an embarrassment to their trade and university, hence Obama’s departure to another AA guaranteed “job.”

Odie1941 on July 6, 2011 at 12:58 PM

In his entire life, Likeke O’bama has never held a “job” for longer than 2 or 3 years. His “job” as US Senator from IL was for a 4 year term, but he quit that job two years in, in order to brainwash the Democrat Media into getting him elected pResident.

And they call Palin a Quitter.

Del Dolemonte on July 6, 2011 at 1:47 PM

The only way to address the energy problem in the US is to start producing more reliable domestic supply.

Come on, Sarah, run. We need you.

Paul-Cincy on July 6, 2011 at 1:47 PM

He also doubted whether he was legitimately an editor on the Harvard Law Review, because if he was, he would be the first and only editor of an Ivy League law review to never be published while in school (publication is or was a requirement).

slickwillie2001 on July 6, 2011 at 1:30 PM

Some people are more equal than others.

Del Dolemonte on July 6, 2011 at 1:48 PM

The problem with Obama here is that, as with virtually everything else, he understands the word “strategic” only as it stands in relation to himself. The idea that a strategic oil reserve would exist to serve the country in the event of a genuine, non-partisan national emergency, rather than his own political interests, is essentially incomprehensible to him. To a normal person, “Iran has attacked Saudi Arabia” would constitute a legitimate strategic crisis. To Obama, “I was asked some questions that really made me angry in that press conference” is a strategic crisis.

Blacklake on July 6, 2011 at 1:55 PM

Chuck Schick on July 6, 2011 at 12:53 PM

crr6 forgot to mention the faculty gave a resounding “no” to the offering once it was made, knowing he was an embarrassment to their trade and university, hence Obama’s departure to another AA guaranteed “job.”

Odie1941 on July 6, 2011 at 12:58 PM
In his entire life, Likeke O’bama has never held a “job” for longer than 2 or 3 years. His “job” as US Senator from IL was for a 4 year term, but he quit that job two years in, in order to brainwash the Democrat Media into getting him elected pResident.

And they call Palin a Quitter.

Del Dolemonte on July 6, 2011 at 1:47 PM

What bothers me most – is not only did Obama get AA treatment for a title and pay, then quit… he never came close to influencing anything positive, nor has he ever delivered any rate of return. I am in sales and have quit many jobs – because I earned everywhere I have been and write my own salary each year. In certain cases, like Palin’s – quitting is a mark of strength, rather than a weakness… because she produced a rate of return for the State of Alaska and its people, while avoiding the legal doom personally, which would have created a useless acting Gov for the people.

Even his so-called “organized community” experince was nothing more than a shell game for Rezko to bilk poor blacks and the state for bogus Section 8 housing projects – that were all deemd unlivable within less than 10 years.

It is the poster child of whats wrong with racial identity politics – at the expense of the supposed race being “helped.”, akin to gangster rap being glorifed as……… black on black gang violence skyrockets.

Odie1941 on July 6, 2011 at 1:56 PM

The more I think about it, the more I believe the SPR release was a test. They wanted to see how fast and how much it would reduce the pump price and how long the lower price would last, just in case they need a boost next year.

~~~~~~

The story of Obama’s election as President of Harvard Law Review was related by one of the people there. It is a prized title and many wanted it badly, but no one was able to put together a majority. Dozens of candidates got in at one point or another, coalitions formed and broke apart, tempers flared, grudges grew. Through all this and over 50 ballots, Obama sat quietly, not contributing anything to the discussions but not making any enemies either.

By the time the 53rd ballot came around, the acrimony had tired out the staff, many of whom had lost friends over the course of the day. Obama was the last guy no one had an objection to, and became the compromise candidate.

He not only didn’t publish any scholarly articles while President of HLR – I don’t know that it’s required but it’s a way to get noticed by potential employers that is one of the reasons people want the office so much – he didn’t publish as a lecturer, either.

How many non-tenured lecturers in the USA keep a job, even a part-time one, for years without publishing anything?

Adjoran on July 6, 2011 at 2:03 PM

Del Dolemonte

U.S. Senator’s a 6 year term, not 4.

tree hugging sister on July 6, 2011 at 2:21 PM

Obama keeps talking nonsense about economics

From today’s Paul Krugman “column” in the NYT.

Comments to his article? Brainless, as usual!

Austerity will kill America. I wish you had a sound economic theory, like MMT, and could persuade people.

Government spending directly ADDS to spending and income. there are no crowding out effects the mainstream economics talks about.

Professor, this may be one of the most perceptive articles you’ve ever posted.

(that was “Gummo”, from Brooklyn. Harpo and Zeppo could not be reached for comment.)

And my fave so far

As someone else pointed out a few weeks back, he probably believes all the bs from his fellow elite MBA friends from Harvard, Chicago, etc. who are basically running the show on Wall Street, the very same Serious People and Very Serious People who brought us to the brink of financial collapse.

The charge of elitism against him during the Democratic Primary in 2008 was actually correct, but for the wrong reason – he lives in this world where these people are given the same intellectual deference as rocket scientists, and they can’t be wrong. Look, he put in the House of Rubin as his primary economic team. He ignored Paul Volcker, just used him as a prop during the campaign to show off his small-s “seriousness.” He goes along with the fact-free world of business elites which demand ever more, to the destruction of the nation as a whole. He has no macroeconomic understanding because all the businessmen push their microeconomic views on him and he bought into it.

Del Dolemonte on July 6, 2011 at 2:22 PM

Drill baby drill. Anyone notice how well North Dakota is doing lately? Shale oil fields have a lot to do with that. But they’re having the same Federal permitting holdups that the Gulf, Alaska, and off-shore drilling are having.

hawksruleva on July 6, 2011 at 2:24 PM

Del Dolemonte

U.S. Senator’s a 6 year term, not 4.

tree hugging sister on July 6, 2011 at 2:21 PM

D’OH! My Bad. Thanks for correcting me.

But that makes him look even worse-he quit that “job” 1/3 of the way in, not halfway.

Del Dolemonte on July 6, 2011 at 2:27 PM

We have vast reserves of oil, coal, and natural gas that would power the US for decades if not centuries and create hundreds of thousands of direct, high-paying jobs if we had the will to extract and use it.

That price of coal should be dropping soon, too. The EPA is trying to shut down Texas coal-generated electricity, even though emmissions are below national average. Payback, I suppose.

If it were just incompetence, wouldn’t these clowns occasionally do something good for the country?

iurockhead on July 6, 2011 at 2:30 PM

That is what an actual economic and energy policy would look like.

Good long-term strategy for future energy production!

dominigan on July 6, 2011 at 2:55 PM

His absence of anything tangible; whether written, argued or published in the field of Law has been a glaring joke on the American people.

Odie1941 on July 6, 2011 at 1:27 PM

And instead, he writes a book about…himself.
What a narcisstic lazy fool.
Thanks for the info BTW.

Anyone notice how well North Dakota is doing lately? Shale oil fields have a lot to do with that. But they’re having the same Federal permitting holdups that the Gulf, Alaska, and off-shore drilling are having.

hawksruleva on July 6, 2011 at 2:24 PM

I guess IDK about that, since from what I am to understand lots of new wells are being drilled currently.
I know that the gasification coal plant planned for South Heart, near Dickinson, was put on hold bcs of Obama getting elected. And I think they had already broken ground on it. Not sure what’s going on with it now.

Badger40 on July 6, 2011 at 3:04 PM

“Gimmicks. Everything is gimmicks, man. War, napalm bombs, everything.”
J. Hendrix on Dick Cavett Show

teacherman on July 6, 2011 at 3:21 PM

For the last time He was President of the Harvard Law Review not Editor.

All of this was covered by the media when they skewered Him.

IlikedAUH2O on July 6, 2011 at 3:28 PM

You missed all the magnified investigations?

All the close up reviews and considerations of his competance?

Where were you?

IlikedAUH2O on July 6, 2011 at 3:29 PM

How about them breaking into the Hawaiian records office and the problem with the press releasing all kinds of information on Ayers and Rezko. They even filed numerous suits over His finances at at college and lost years. Mr. Hannity told them to back off it got so bad!

IlikedAUH2O on July 6, 2011 at 3:33 PM

By the way, the US will eventually have to replace that released amount of oil. What happens when we start buying oil in the market to do so? Prices will go up even further as demand increases and supply remains constant. It will likely cost us more than it did to buy the released oil in the first place. This is basic economics, not terribly difficult to grasp.

This is what i tried to explain to colleagues. Without facts at hand, my guess is that we replenished what Dubya released when gasoline was around $1.80~$2.00/gal or mayhaps $50/barrel for crude. If Zero opts to replenish this Summer, we’re gonna do it at around $90 or $95/barrel.

Once again, our “constitutionsal scholar” winds up making taxpayers pay double for a meaningless stunt.

AH_C on July 6, 2011 at 4:04 PM

The Lion of Libya is a merde Midas; everything he touches turns to…

And brings misery in his wake.

He won.

Dhuka on July 6, 2011 at 4:25 PM

Now who could have foreseen that cash for crude would be just as dumb as cash for clunkers was?

MJBrutus on July 6, 2011 at 4:50 PM

In other words, the release did nothing to solve the underlying issues of supply and demand, as Jazz Shaw predicted on June 23rd.

Sorry Ed and Jazz: The price of oil in the last year or two has a much stronger link to the declining dollar than supply and demand.

PatriotRider on July 6, 2011 at 5:12 PM

Well we did release the oil because of an ‘emergency’. A POLITICAL EMERGENCY.

Guess “The Smartest Man in the World” didn’t heed the actions of Nixon when he released thousands of ounces of gold onto the mark in order to keep the price at $35oz. The gold was snapped up and promptly resold at what we were told were ridiculous prices. Too bad we can’t get that gold back today.

GarandFan on July 6, 2011 at 5:18 PM

Hey, you know what’s cool about a strategic reserve? It’s strategic. George W. Bush paid then-expensive prices to fill it up, so in the event of a nuclear war, supervolcano eruption, or other grim scenario, we could tap it for the good of Americans.

It’s a trivial amount of oil in our still-staggering-economy today, but a massive stockpile in case of a disaster.

So of course Obama pours it all out in a longshot attempt to buy an eventual few-thousand votes. One could not contrive a better illustration for how Bush, for all his faults, was actually interested in the welfare of his fellow Americans, where Obama is not.

HitNRun on July 6, 2011 at 5:29 PM

It is important to remember that Cash for Clunkers had one lasting effect: by removing those cars from the market, it increased the price of used cars and hurt the lower middle class. Obama strikes again!

Laurence on July 6, 2011 at 5:49 PM