Video: Schumer opposes SPR release … for now

posted at 11:35 am on February 28, 2012 by Ed Morrissey

Via the Free Beacon, Sen. Chuck Schumer gives us a measure of Democratic support for an attempt to game the gasoline market through the Strategic Petroleum Reserve.  Schumer appeared on CNBC’s Squawk Box, where the host noted that former GOP presidential hopeful Jon Huntsman wants a release from the SPR when prices rise above … $108 a barrel?  The host notes that we’ve had $150 per barrel pricing without attempting to manipulate the markets, and Schumer responds that there is a better solution.  Guess what it is:

KERNEN:  What is the number for the SPR, senator? We had Huntsman saying we should do the SPR $108. I was like, $108? We didn’t do it at 150, did we?

SCHUMER: No, the SPR is not as good a solution as the Saudi solution for a couple of reasons. First, it’s limited. The Saudis could produce an additional 2.8 million barrels of oil, way on into the future. The SPR is somewhat limited and the SPR works better when there’s an immediate crisis caused by a natural disaster, a Katrina or something like that. It’s something that I would look at if the Saudis absolutely said no, but it’s not close to as good a solution as this.

Hey, you know who could also produce a few million barrels of oil a day more?  We could … if the Obama administration took the shackles off of exploration and production in the US.  We have plenty of oil on land, in the Gulf of Mexico, and on both continental shelves as well as in ANWR.  We could also have approved the Keystone XL pipeline in order to bring more Canadian oil to market in the US as gasoline at the pumps through our refineries in the Gulf.

Instead of looking at truly long-term solutions, Schumer and Democrats instead set this up as a choice between having the White House spend the SPR — which is held for true emergencies that result in disruptions to the distribution chain — or begging the Saudis to sell us more of their crude.  That’s how far reasonable Democrats will go in attempting to create more energy independence for the US.


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Typical lib approach. Slap a band-aid on that massive headwound.

CycloneCDB on February 28, 2012 at 11:39 AM

But they said cash-for-clunkers would greatly decrease our demand for oil…?
I guess we’re not keeping our tires full enough.

itsnotaboutme on February 28, 2012 at 11:39 AM

That Schumer pic just screams sleeze…

PatriotRider on February 28, 2012 at 11:39 AM

Hey, you know who could also produce a few million barrels of oil a day more? We could … if the Obama administration took the shackles off of exploration and production in the US.

Yes, the Downgrade Administration could do that IF they wanted lower fuel prices at any other time but now.

Chip on February 28, 2012 at 11:40 AM

That’s how far reasonable Democrats will go in attempting to create more energy independence for the US.

Ed, you’re not suggesting Up-Chuck Schumer is reasonable, are you?

Bitter Clinger on February 28, 2012 at 11:41 AM

I really think our politicians are in league with the Saudis. They get big speech “fees” from them and appointments to think tanks, etc. They convince themselves that the Saudis are the devils we know (they could be right).

Why else would we still beholden to their oil after every president since Truman has promised energy independence?

PattyJ on February 28, 2012 at 11:42 AM

Not to worry. Obama has a plan to make us energy independent. Just wait until he rounds up all those rainbow colored unicorns. Their carbon-free flatulence will power us into the next century!

GarandFan on February 28, 2012 at 11:43 AM

SCHUMER: No, the SPR is not as good a solution as the Saudi solution for a couple of reasons. First, it’s limited. The Saudis could produce an additional 2.8 million barrels of oil, way on into the future. The SPR is somewhat limited and the SPR works better when there’s an immediate crisis caused by a natural disaster, a Katrina or something like that. It’s something that I would look at if the Saudis absolutely said no, but it’s not close to as good a solution as this.

You mean, according to Schumer, Obama’s potential election loss doesn’t qualify as an “immeidate crisis”? That’s breaking news!!

Bitter Clinger on February 28, 2012 at 11:44 AM

I, for one, am looking forward to the untapped Gigawatts of power that can only be harnessed at the end of a skimmer on top of dad’s ol’ fishin pond….

ALGAE FTW!!!!!

ted c on February 28, 2012 at 11:44 AM

I’ve always valued Chuck’s judgment. Anthony Weiner was his protege.

a capella on February 28, 2012 at 11:44 AM

The Saudis despise little Bammie. Count on them to do just the opposite of what they usually do for a presidential election. I expect that some time in September/October some pumping stations or terminals in SA will have to be shut down for routine maintenance.

slickwillie2001 on February 28, 2012 at 11:46 AM

a capella nails it.

When you stand up for Weiner, what does that make you?

ted c on February 28, 2012 at 11:46 AM

It really amazes me how ignorant both sides really are. For one, the value of oil/gas is not going up. The price is because the value of the dollar is dropping. You see, oil has actual and intrinsic value like gold or guns. But the fiat US dollar is backed by nothing but the word of a government that is over $15 trillion of debt, starts and maintains idiotic wars that have nothing to do with our national defense – thus increasing debt/deficit, and simply prints more and more of this fiat cash.

It’s not oil stupid – it’s the dollar.

MoreLiberty on February 28, 2012 at 11:46 AM

That man is the reason I hate New Yorker’s!
(Not their sports teams) They gave us Hillary, Cuomo, Weines, Bloombutt, etc. They give us the biggest turds in the Senate and Congress! (We try to do as well…in Michigan) Our POOH…is 3rd behind California!

KOOLAID2 on February 28, 2012 at 11:47 AM

This bloodsucker wants more oil from Saudi Arabia. He should go there with Boxer, Franken, Blumenthal, Sanders, Wyden, Lieberman, Kohl, Levin, Lautenberg and Feinstein to beg for oil. They all have prevented oil exploration and energy independence in the USA.

kozmo on February 28, 2012 at 11:48 AM

Did he get a facelift? Why does his skin look so smooth and shiny?
Do we have to rename him from Chuckles to Stretch Schumer?

vityas on February 28, 2012 at 11:49 AM

It’s not oil stupid – it’s the dollar

So if we limited the bread supply the price wouldn’t necessarily rise if the dollar was strong. Example, if a town needs 100 loaves per day and the supply is reduced to 50 loaves the cost will be based on the strength of the dollar? Conversely if the supply was increased to 150 loaves the price per loaf wouldn’t change?

kozmo on February 28, 2012 at 11:51 AM

More bowing is in order, then. No?

SlaveDog on February 28, 2012 at 11:52 AM

Oh the irony. Prices will necessarily rise and Barry will necessarily go away. Huberistic putz.

Now, if we can just hold out.

Mudhog on February 28, 2012 at 11:53 AM

Just attach a pipeline to his hair, there ya go – problem solved!

50sGuy on February 28, 2012 at 11:56 AM

They just don’t get it. We put it in a bumper sticker form and they still don’t get it. Drill Here Drill Now! I am convinced they are being willfully ignorant. Didn’t really need much convincing. Maybe they are just stupid.

Bmore on February 28, 2012 at 11:56 AM

Don’t think prices will go down much with a Republican in the White House. We don’t have a problem with oil. We have a problem with inflation. Both Democrats and Republicans are committed to it. It’s how they’ve been funding all these spending increases for the last nine years.

rickv404 on February 28, 2012 at 11:56 AM

That’s how far reasonable Democrats will go in attempting to create more energy independence for the US.

When is it going to get through you guys heads, “energy independence for the US” is a canard, a fools errand. Oil is a globally fungible commodity. Energy independence means diddly-squat when the second it comes out of the ground it goes on the global market to the highest bidder. America could produce all the oil on earth and it will not change the price per barrel one single cent or affect the price at the pump.

SWalker on February 28, 2012 at 11:57 AM

SWalker on February 28, 2012 at 11:57 AM

Don’t prices on commodities fall with over supply?

Bmore on February 28, 2012 at 11:59 AM

“So if we limited the bread supply the price wouldn’t necessarily rise if the dollar was strong.”

But that’s not the case here. Demand world wide for petroleum has slowed, but the price has increased. That’s because the value of our dollar is horrible via the Fed printing out of thin air.

MoreLiberty on February 28, 2012 at 12:02 PM

Because of the recession caused low demand, our national supply exceeds our national demand and the difference has resulted in our exporting petroleum products. SPR oil, if dumped on this market would be refined and exported to satisfy world demand.Schumer is a poor excuse for a human being much less a leader of our country but he is aware of this.

dunce on February 28, 2012 at 12:04 PM

Totally OT: Another member of 101St Airborne E Co. has taken his final jump. RIP Buck!

annoyinglittletwerp on February 28, 2012 at 12:04 PM

Don’t prices on commodities fall with over supply?

Bmore on February 28, 2012 at 11:59 AM

There is no such thing as over supply with oil. There is only maximum storage capacity, and when that is reached, production HAS to slow down or halt. The concept of American Energy Independence would require America to no longer participate in the global oil market. Do you see that happening ever?

SWalker on February 28, 2012 at 12:07 PM

SWalker on February 28, 2012 at 12:07 PM

No, but we participate in global commodity markets, that do lower. My interest in securing more on our own is really more about security. I understand the issue’s with the weak dollar as a couple of commenter’s mentioned above. My thinking is that if we did have an energy policy that included not only securing more of our own, but also a big increase in refinement, with a lessening consumption both here and worldwide. Prices would have to fall. The market would command them to. Of course the dollar issue though joined at price and value would have to be taken up separately.

Bmore on February 28, 2012 at 12:15 PM

But that’s not the case here. Demand world wide for petroleum has slowed, but the price has increased. That’s because the value of our dollar is horrible via the Fed printing out of thin air.

MoreLiberty on February 28, 2012 at 12:02 PM

My understanding is that American demand has slowed, but demand is still strong in China and other Asian markets. Couple that with Iranian threats to close the Strait of Hormuz (which would cause a serious supply problem) and that has had an effect on prices. But if Obama didn’t so restrict our access to our own supplies of oil, we could be increasing the overall supply and tamp down the upward pressure on these price increases.

Bitter Clinger on February 28, 2012 at 12:24 PM

Bitter Clinger on February 28, 2012 at 12:24 PM

Sounds reasonable to me. Add to that a way overdue increased refinement capacity. Matter of fact if I’m not mistaken we just shut down a couple of refinery’s and not just to switch over to summer blends.

Bmore on February 28, 2012 at 12:41 PM

Demand world wide for petroleum has slowed, but the price has increased.

MoreLiberty on February 28, 2012 at 12:02 PM

Yeah, right. The Chinese and Indians, Japanese and South Koreans said they just don’t want any more oil.

NOMOBO on February 28, 2012 at 12:45 PM

Sounds reasonable to me. Add to that a way overdue increased refinement capacity. Matter of fact if I’m not mistaken we just shut down a couple of refinery’s and not just to switch over to summer blends.

Bmore on February 28, 2012 at 12:41 PM

Amen. No new refineries since the late 70′s.

Bitter Clinger on February 28, 2012 at 12:47 PM

How long have we been told it will take too long? SPR release is dumb.

Cindy Munford on February 28, 2012 at 12:52 PM

The SPR is somewhat limited and the SPR works better when there’s an immediate crisis

Like a looming presidential election with a lousy Democratic candidate who desperately needs gas prices to temporarily go lower.

That’s why Chuckie thinks it’s too early to use the SPR — needs to be much closer to early November 2012 for it to have the desired effect!

AZCoyote on February 28, 2012 at 12:53 PM

…Example, if a town needs 100 loaves per day and the supply is reduced to 50 loaves the cost will be based on the strength of the dollar? Conversely if the supply was increased to 150 loaves the price per loaf wouldn’t change?

kozmo on February 28, 2012 at 11:51 AM

Um, Koz? Bread is not a global commodity. Sounds like you slept through macroeconomics.

iurockhead on February 28, 2012 at 12:59 PM

That’s why Chuckie thinks it’s too early to use the SPR — needs to be much closer to early November 2012 for it to have the desired effect!

AZCoyote on February 28, 2012 at 12:53 PM

Bingo. If they open it and it is apparent that it had no effect before the election, no buzz for 0. It needs to be right before the election, so that 0 appears to be doing something useful.

iurockhead on February 28, 2012 at 1:02 PM

IT TAKES 45 DAYS TO DRILL AN OIL WELL FROM START TO FINISH AND PRODUCE OIL THEREBY INCREASING OIL PRODUCTION IN 45 DAYS, Schmucky! The timeframe for “increased oil production takes 10 years” is pure BS.

We can build a new oil production and shipping facility, excluding Obowma’s EPA permits, environmental restrictions and regulations within a year or less if you allow bonuses for early completion: see the LA Freeway repair after a massive earthquake.

http://articles.latimes.com/1994-05-18/local/me-59153_1_earthquake-repair

dthorny on February 28, 2012 at 1:07 PM

What are speculators, speculating on? Increasing prices.

WHAT is driving the higher prices? Iran threats, Chinas increased use, American failure to produce more oil and the EPA permits are not issued for increased drilling for oil.

No more idiotic theories on oil speculators pushing higher oil prices.

dthorny on February 28, 2012 at 1:12 PM

O/T
3rd shooting victim dies in Chardon Ohio school shooting,
Please pray for the victim’s and their families!!!!!!

angrymike on February 28, 2012 at 1:13 PM

Um, Koz? Bread is not a global commodity. Sounds like you slept through macroeconomics.

I slept through many classes. But not supply and demand. tell me why the cost of natural gas has plummeted?

U.S. energy companies are pumping so much natural gas out of the ground that prices are plummeting, and the cheap gas isn’t likely to evaporate anytime soon. Natural-gas prices fell 5.7% Wednesday to their lowest level in over two years—good news for people who use gas to heat homes and for companies that use it to power factories.

For U.S. energy companies, however, the domestic natural-gas market is looking increasingly out of whack. Despite a 32% drop in prices last year, onshore production rose 10%, and it is expected to rise another 4% this year, according to Barclays Capital. As a result, prices are expected to remain low for at least the next couple years.

I’ve followed our dreadful national energy policy for 40 years. We have never tried to increase domestic supply to the point where there was a world-wide glut.

kozmo on February 28, 2012 at 1:16 PM

Looks like Chuck got a face lift and is wearing a lot of make up.

Wallythedog on February 28, 2012 at 1:18 PM

Another democrat lie: Obowma increased oil production.

Domestic oil production DECREASED 1.2% in 2011. The second largest production drop in 10 years. The largest drop was 2008 when democrats halted offshore drilling until GW Bush allowed drilling and gas prices dropped dramatically.

http://www.api.org/statistics/~/media/Files/News/2012/12-January/MSR-Summary-Dec11.ashx

dthorny on February 28, 2012 at 1:55 PM

Looks like Chuck got a face lift and is wearing a lot of make up.

Wallythedog on February 28, 2012 at 1:18 PM

Like Rush always says, “Politics is showbiz for the unattractive.”

Bitter Clinger on February 28, 2012 at 2:30 PM

Demand world wide for petroleum has slowed, but the price has increased.

MoreLiberty on February 28, 2012 at 12:02 PM

Oil prices are being propped up by cuts in production, by the Saudis for one. The laws of supply and demand won’t cause the price to go lower if demand falls but production is adjusted to meet a target price.

slickwillie2001 on February 28, 2012 at 2:31 PM

Schumer has a great future in horror movies, he’s scary for so many slimy reasons, and his hob-goblin mug doesn’t need any make up, maybe a little help on top of the ears but not nearly as much his fellow scare mongers.

Speakup on February 28, 2012 at 2:46 PM

a capella nails it.

When you stand up for Weiner, what does that make you?

ted c on February 28, 2012 at 11:46 AM

A fluffer?

Buttercup on February 28, 2012 at 3:44 PM

Inflation doesn’t cause gas to rise by 20 cents a gallon in the last 10 days. It is actually speculators more than anything which is attached to supply and demand.

The price of gas we pay today is in response to what they think gas will cost the provider in 2 weeks.

Voter from WA State on February 28, 2012 at 3:17 PM

Again, WHAT is driving the higher prices? Iran threats, China’s increased use of fuel, American failure to produce more oil and the EPA permits are not issued for increased drilling for oil.

No more idiotic theories on oil speculators pushing higher oil prices, please. Did speculators push prices down in 2008? IT WAS INCREASED OIL PRODUCTION.

dthorny on February 28, 2012 at 1:12 PM

dthorny on February 28, 2012 at 4:40 PM

We could tap Schumer to make up any petroleum shortfall. He’s sure oily enough.

curved space on February 28, 2012 at 8:10 PM

Upchuck sure has a lot more confidence in the Saudis than real Americans. Please note how Upchuck avoided actually extracting our own damn oil!?! America! Remember in November that it was the DoltocRATs with their Massive LIE of global warming that got us here!?!

Colatteral Damage on February 29, 2012 at 5:02 PM