Obama to Cameron: Let’s tap our strategic oil reserves together

posted at 11:35 am on March 15, 2012 by Ed Morrissey

Remember that Barack Obama insists that there are “no silver bullets” to fix the issue of high gas prices.  So when British Prime Minister David Cameron visited Washington for high-level talks and the discussion turned to gas prices, what did Obama propose?  According to Reuters, holy water and a garland of garlic:

President Barack Obama and British Prime Minister David Cameron discussed the possibility of releasing emergency oil reserves during a meeting on Wednesday, two sources familiar with the talks said, the first sign that Obama is starting to test global support for an effort to knock back near-record fuel prices. Obama raised the issue during a broad bilateral meeting at the White House, according to a UK official with knowledge of the discussion.

Asked about the talks, a senior Obama administration official said: “No agreement was reached. We will continue to work together to address energy security and oil price issues.” While U.S. officials have said for weeks that they will consider all possible measures – including a release from the U.S. Strategic Petroleum Reserve (SPR) – to prevent prices from derailing a nascent economic recovery, Wednesday’s meeting was the clearest indication that diplomatic talks were moving ahead. Discussions could last as long as several months before any decision is made, one of the sources said.

We’ve discussed the demand from Democrats on the strategic petroleum reserve on a number of occasions.  The problem with the gasoline and oil markets isn’t a temporary disruption in a healthy supply, however, which is what the SPR is designed to buffer.  The problem is a chronically and artificially suppressed supply, thanks to Democratic insistence on blocking domestic energy production and oil extraction over the last three decades or more.

This is what Obama refers to as the “silver bullet,” claiming that expanding drilling and extraction is a short-term policy that won’t enhance American energy independence.  That’s utter nonsense; drilling is a long-term solution that actually addresses the chronic supply issue and — not coincidentally — the trade imbalance, the weak dollar, jobs, economic growth, and a number of other issues in the American economy.  If drilling is short-term thinking, then what can a one-time release from the SPR be called — the ADD solution?

Jim Geraghty gives a chronicle of SPR releases:

The “emergency” would seem to be Obama’s poll numbers. Then again, this seems to be a Democratic candidate tradition; Al Gore called for the same move while running for president in 2000.

Oil from the Strategic Petroleum Reserve has been sold five times in its history: Most recently in 2011 during the conflict in Libya; in 2005 after Hurricane Katrina; a sale of  $227 million worth of oil during fiscal year 1996 to reduce the federal budget deficit; in 1990-1991 during Desert Shield/Desert Storm, and a small “test sale” in 1985.

And how well have those releases worked as long-term solutions?  Tina Korbe noted that gas prices actually went higher within weeks of the release last summer.  The only reason for an SPR release now would be for the “emergency” Jim identifies — the electoral emergency Obama will face if gas prices continue to rapidly increase.

The RNC has a new video out today showing just how often Obama has reminded us that there are “no silver bullets” on gas prices — and how little he has done to implement a long-term policy that will lower them:

A few more of these references, and Bob Seger and Coors may have a case for trademark violation.


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Is the “silver bullet” the same as the “magic bullet”? If so, is Specter receiving royalties everytime Obama mentions it? I guess this is his retirement package from the Democrats.

djaymick on March 15, 2012 at 1:48 PM

Doofuses have been put on alert, they can’t just spew inanities about supply and demand. Eventually the economic realities bite them. $5.00 gas sucks when you are President Algae.

Nemesis of Jihad on March 15, 2012 at 1:51 PM

Why doesn’t Barry just come out and tell the truth, “I’M HAPPY WHERE OIL/GAS PRICES ARE! DIDN’T YOU PAY ATTENTION DURING MY CAMPAIGN?”

GarandFan on March 15, 2012 at 1:52 PM

……….and it’s not just Obama’s fault.

http://www.msnbc.msn.com/id/25674571/ns/business-oil_and_energy/t/bush-calls-congress-lift-oil-drilling-ban/#.T2IrSHnMgVg

Bush 41 put a ban on offshore drilling in his neighborhood (off the Atlantic coast in 1990, and parts of the coast of Florida).

http://articles.sun-sentinel.com/1990-06-27/news/9001150913_1_permanent-drilling-ban-florida-keys-leases

http://latimesblogs.latimes.com/washington/2008/06/jeb-bush-defend.html

PappyD61 on March 15, 2012 at 1:52 PM

Obama’s priorities:

1. Obama
2. Obama
3. Obama
4. Obama
5. Obama
6. Obama
7. Obama
8. Obama
———-
97. Obama
98. Obama
99. Economy

fogw on March 15, 2012 at 1:53 PM

Rooting for America to fail since 2008

-teabaggers & falsenews

0bamaderangementsyndrom on March 15, 2012 at 1:55 PM

This is a fitting coda to the idiocy of George W. Bush.

Spend 8 years filling up a “strategic reserve” — taking all kinds of hell for putting upward pressure on gas prices from a hostile media — so your successor can sneer at you while he dumps it out to spare himself the consequences of his policies until after he’s reelected while denouncing your administration and legacy.

HitNRun on March 15, 2012 at 1:57 PM

Obama to Cameron: Let’s tap our strategic oil reserves together

I cant get the image out of my head of Cameron and Obama hi-fiving each other while double teaming a barrel of oil…

Ben Hur on March 15, 2012 at 1:59 PM

“A moritorium allows for more drilling. I mean it’s not a lessitorium.”

-President Algae, Hussein Community College Speech (2012)

Nemesis of Jihad on March 15, 2012 at 1:59 PM

For all of you that got this disaster elected, look what we have representing the United States of America. That’s for disgracing the nation with your vote.

Hening on March 15, 2012 at 11:58 AM

This disaster got elected because of the people that voted the previous disaster into office. Remember him? That lying, warmongering, liberty crushing, Bill of Rights destroying illiterate torture proponent? That republican disaster got elected because of the democratic disaster before him, and the republican one before him.

Both parties are evil and corrupt, both parties are destroying this nation, both parties are destroying our liberty. Both parties are a clear and present danger to the safety and security of this nation.

AttaBoyLuther on March 15, 2012 at 2:01 PM

For all of you that got this disaster elected, look what we have representing the United States of America. That’s for disgracing the nation with your vote.

Hening on March 15, 2012 at 11:58 AM

Point of order:

Barky was elected by he does not represent anything about America (except our suicidal tendencies). I often wonder if foreign leaders understand that when they speak to Barky or his useless idiots they are NOT speaking to America.

ThePrimordialOrderedPair on March 15, 2012 at 2:07 PM

Luther, you sound like Don Knotts giving an acceptance speech for an award he doesn’t deserve.

Nemesis of Jihad on March 15, 2012 at 2:13 PM

If y’all had listened to President Genius in the first place and been checking the air pressure in your tires, we wouldn’t be in this mess…

chewydog on March 15, 2012 at 2:14 PM

Hey Ed! I know I was in diapers way back in 2010, but I still remember your strategic apology to the racist Shirley Sherrod. What kid of solution was that? The one where you bend over to the MFM?

but, but, but…I supported GOProud! Never mind Santzy hates gay people and libertarians.

DHChron on March 15, 2012 at 2:41 PM

Hope to hell that Cameron punk’s his a@#

tom daschle concerned on March 15, 2012 at 2:46 PM

Obama picked UNC to win it all????

…I am a hardcore Heels fan and can tell you we will not win this tournament with Zeller and Henderson in the middle and two of our best guards on the bench.

Baxter Greene on March 15, 2012 at 1:19 PM

Like everything else that he does, 0bama did not make this decision based on actual knowledge of the subject matter. Everything he does is political. His choice of sports teams is no different.

He hopes to gain favor with the people of North Carolina because he needs to win it in the 2012 election.

UltimateBob on March 15, 2012 at 2:47 PM

Cameron is a fool to enable Obama’s re-election charlatanry.

The prices will drop a tad, then rise exponentially after the election, if same clown stays in.

Schadenfreude on March 15, 2012 at 2:47 PM

“They say gasoline could be $6 a gallon. But the good news is the White House says President Obama is aware of the problem, and will continue to talk about it between fundraisers.” — Jay Leno

Schadenfreude on March 15, 2012 at 2:49 PM

O/T,

@CNBCbrk tweeted:
*******************

White House: Report on release of emergency oil is not true.

Submitted 2 hours ago from twitter.com/CNBCbrk
http://www.breakingnews.com/
============================

canopfor on March 15, 2012 at 2:36 PM

canopfor on March 15, 2012 at 2:37 PM

canopfor on March 15, 2012 at 2:51 PM

Speaking of Energy,you stupid Carnival Barkers,er,Flat Earth
Socialists,er,YOU PEOPLE Flat Earth’rs jus dont git it!!!(sarc)
—————————————————————-

US President Barack Obama defends energy policy, calls critics a ‘Flat Earth Society’
***********************
************************

Submitted 19 mins ago from http://www.latimes.com
http://www.breakingnews.com/
============================

Obama defends energy policy, calls critics a ‘Flat Earth Society’
March 15, 2012, 9:12 a.m.
*************************
*************************

Reporting from Washington —

President Obama coined a new campaign line on Thursday when he said Republican presidential candidates’ views on energy policy qualifies them as members of the “Flat Earth Society.”

Speaking to a crowd in the Maryland suburbs of Washington, Obama charged that the GOP contenders are dismissive of alternative energy and compared them to those who thought Columbus shouldn’t set sail.

“We’ve heard these folks in the past,” Obama said. “‘Television won’t last. It’s a flash in the pan.’ … ‘The horse is here to stay but the automobile is only a fad.’”

While the president riffed on the idea in a joking tone, his speech at Prince George’s Community College revealed a very serious undercurrent running through his White House right now. The president has few tools to check the rising cost of gasoline in the short term, and his advisors are acutely aware of the effect this could have on voters.

Of course, Obama has not always been above embracing the quick-hit solution on gas prices. During the 2008 campaign, as prices jumped, then-candidate Obama proposed a windfall profits tax on energy companies and said he’d use the money to give taxpayers a $1,000 energy rebate. But the proposal faded and never came to pass, after gas prices fell and the recession hit.(More…)
=============================================================

(President Obama delivers a speech at Prince George’s Community College in Largo, Md.EPA / March 15, 2012)

http://www.latimes.com/news/politics/la-pn-obama-defends-energy-policy-calls-critics-a-flat-earth-society-20120315,0,6256698.story

canopfor on March 15, 2012 at 12:57 PM

canopfor on March 15, 2012 at 2:54 PM

Someone should clue in Columbia Poli Sci retards everywhere that no one has though the earth flat, since close to 1000BC. That really is an incredibly stupid statement. A statement that no doubt will resonate with his voting base, as well as journalism school graduates.

Me thinks that’s Amateurism material but who am I. Just a commenter…not a professional.

MNHawk on March 15, 2012 at 2:57 PM

Releasing oil from the Strategic Reserve is like treating a deep puncture wound with a band-aid.

Gas prices will drop in the short-term, but they will soon resume rising, as they did in 2011 when 0bama went to the reserves. It will, of course, give Soetoro a little time to claim he “did something” about gas prices.

It should be noted that 0bama and his minions have been saying supply and demand have no effect on gas prices, and the POTUS could do nothing about them.

In addition, all petroleum released from the Strategic Reserve has to be replaced for national security reasons, and has to be paid for at whatever the price of petroleum is at the time.

MidniteRambler on March 15, 2012 at 3:04 PM

Releasing oil from the Strategic Reserve should tide us over until our algae converters arrive…

MidniteRambler on March 15, 2012 at 3:05 PM

In my opinion, Cameron is not likely to release UK reserves. Politically there is a strong movement within Scotland to secede from the UK. (William Wallace is alive and well) Most of UK North Sea oil lies off the Scottish coast and the Scots will not easily agree to a release of reserves. It’s called leverage. Cameron does not need the headache.
That would leave the US alone in releasing it’s reserves. BTW, Germany and France have already indicated they will not participate.

diogenes on March 15, 2012 at 3:16 PM

Obama has determined gas prices may hurt his reelection so will use the full power and wealth of the Government on a fix long enough to last till the election is over and then back to the Cloward Piven.

Grunt on March 15, 2012 at 3:22 PM

To the tune of Dr Hook’s “Sharing The Night Together”:

You’re looking kinda lonely Dave
Would you like someone new to talk to
Ah-yeh, alright
I’m feeling kinda lonely too
If you don’t mind can I sit down here beside you
Ah-yeah, alright

If I seem to come on too strong
I hope that you will understand
I say these things ’cause I’d like to know
If you’re as bankrupt as I am and if you mind
Tapping reserves together
Oh-yeah, tapping reserves together
Oh-yeah, tapping reserves

Marcola on March 15, 2012 at 3:24 PM

Tapping reserves will do very little, if anything, to lower the price of gas. the fact that the United States is exporting more GASOLINE now than ever before in order to keep gas prices high was just reported earlier this week. The article stated that consumer reaction to rising gas prices has been to drive less, resulting in a SURPLUS of gasoline. In order to keep the price of gasoline from dropping, numerous companies have been exprting more and more gas.

With a surplus of gas, how will more oil available to refine into more gasoline make much of a difference? As long as the companies continue to engage in such practices in order to artificially inflate or maintain the inflated price of gas, I don’t see how tapping our reserves will help.

Since Obama has proven he has no reservations about ‘nationalizing’ private companies, why doesn’t he ‘nationalize’ one of these companies, halt such practices, and use the surplus of gas to lower gas prices here at home rather than continue to export it overseas?! (CLARIFICATION: This was SARCSM! — And Sarcasm, as we all know, is the body’s natural defense mechanism against ‘stupid’! — I am not actually suggesting he do this or expressing any approval of how he did this Un-Constitutionally regarding GM.) Perhaps he could declare the economy a national security matter/issue and threaten the oil companies that inflating the cost of gas or preventing the cost of gas from coming down for ‘excessive priofits’ would be considered ‘profiteering during a crisis’. Of course then we get into the ugly, undesirable area of allowing the government to define what is ‘enough profit’. We want to, for the most part, avoid allowing Obama/Liberals they have the authority to do that!

easyt65 on March 15, 2012 at 3:25 PM

Cameron is a fool to enable Obama’s re-election charlatanry.

The prices will drop a tad, then rise exponentially after the election, if same clown stays in.

Schadenfreude on March 15, 2012 at 2:47 PM

Petro as they call it in UK is nearly $10. Cameron needs this more than Obama. Iran is refusing to sell to Europe especially England. Oil is a global commodity so impact on supply anywhere in the world raising prices globally. And if you compare America’s gas prices its far cheaper than Canada or Europe.

0bamaderangementsyndrom on March 15, 2012 at 3:32 PM

Ok…..

So what happens when the SPR is gone and the Mideast cuts off the spigot???

$10 a gallon??? $20 a gallon???

Government takeover of the private US oilfields for the national good???

Give Obama another term and this is where we are headed….

Forget about driving or electricity….and then food & water will be in short supply.

Don’t think it can happen?

redguy on March 15, 2012 at 3:45 PM

HA had a server hiccup a few minutes ago…
-
I my opinion Cameron will not release British oil reserves for several reasons.
There is a serious movement in Scotland to secede from the UK (William Wallace is alive)and the Scots will use North Sea oil to gain concessions from London or indeed, move on.
Secondly Cameron is well aware of Obama’s slights against the British people. (returns bust of Churchill, cheap gifts to Queen, giving serial numbers of Trident missiles to Russia)
Thirdly, Germany and France have already indicated they will not participate in releasing their petroleum reserves. That leave the US alone in this exercise.

diogenes on March 15, 2012 at 3:48 PM

So what happens when the SPR is gone and the Mideast cuts off the spigot??? $10 a gallon??? $20 a gallon???

There is enough shale oil in the NW/Canada to actually completely end our dependence on foreign oil by 2014 if we began focusing on tapping it. This was from a report in the Wall Street Journal. There are other untapped sources throughout the US and off of our own coasts that, while our politicians are not allowing US to go after, foreign companies are already going after. Liberals have been telling us since Carter, however, that drilling for oil will nto help us in the ‘short term’. If we had begun drilling and tapping our own oil around the time Carter left office that same untouched oil would be helping us NOW, which would have been the ‘long term’ THEN! The longer we let @sses like Obama say ‘no’ we continued to be $crewed, the farther away that ‘long term’ gets, and we stay dependent on foreign oil. There is no shortage of oil here, just as there is no shortage of gasoline in the US. We continue to be told we can’t drill, and the oil companies continue to manipulate the price of gas.

easyt65 on March 15, 2012 at 3:59 PM

easyt65 on March 15, 2012 at 3:59 PM

We may find out soon enough.
The Israeli cabinet just authorized Bebe to use force against Iran.

Meantime CVN 65 CG is in the Atlantic — plowing through the waves straight and true.

She is headed east and not at low speed.

IlikedAUH2O on March 15, 2012 at 4:19 PM

Obama to Cameron: Let’s tap our strategic oil reserves together

Cameron to Obama: My straw is bigger than your straw.

timberline on March 15, 2012 at 5:45 PM

I would just like to note that this picture was taken in the University of Dayton basketball arena, Go Flyers!! Even though they were only hosting it and not playing!

txmomof6 on March 15, 2012 at 6:47 PM

Hope to hell that Cameron punk’s his a@#
tom daschle concerned on March 15, 2012 at 2:46 PM

Wishing for the worst is so selfish!! There are people out here who are really struggling, why would want that ??!!

Can.I.be.in.the.middle on March 15, 2012 at 7:23 PM

Things about gas and shortages,production and exploration and pricing etc… are most troubling.

We have the most gas efficient cars the world has ever known and in most areas and markets there is a decline in the purchasing of gas on a whole. All or most has been on a voluntary bases… i.e. the people want it and the car manufacturers are working to produce it… Yet that is not enough for the, get of your car and walk crowd.

The problems of supply and demand coupled with the multiple bouquet blends mandated by the enviromentalista elites, cause many delays and add costs with little to no realized benefit. Also tied to the higher gas mileage cars and trucks is that there are many TAX added sub buckets that are collected and used for local, state and federal coffers to fund their many pet projects and infrastructure repair and maintenance for roads and highway patrol etc. you use less gas they get less money… see quid pro quo. The gas stations used to have to list all the taxes that were added to you gallon of gas… i.e. if gas is $4.00 per gallon $2.50 is going to individual fees and taxes (not exact breakdown just and example).

Obama and this administration have ignored the trends and stopped listening to reason on day one of the “One’s” reign of terror.

Every time I see President Obama trying to present his next newest solution to the U.S. economies most serious problems, I picture Bullwinkle trying to pull a rabbit out of a hat.

ActinUpinTexas on March 15, 2012 at 10:36 PM

I just don’t understand this whole US oil thing. Why do we import oil every day, then talk about using the oil reserves and yet we are the 12th largest oil exporter in the world at over 2 BILLION barrels a day.
The president said we are drilling more oil now then under the previous administration. This may be true but what he lies about is that this oil is all being exported. Exports are up over 44% since 2008. We replace this oil with imported oil at a higher cost.

jpcpt03 on March 15, 2012 at 11:51 PM

I just don’t understand this whole US oil thing… We replace this oil with imported oil at a higher cost.

jpcpt03 on March 15, 2012 at 11:51 PM

Many people don’t understand this. It’s because economics is so poorly taught, if at all, to the general population in this country (probably because it will teach them to think “dangerous” thoughts). It’s pretty simple:

Oil is traded internationally. Oil prices are determined primarily by the forces of supply, demand, and expectations. Expectations aside, when global demand increases relative to global supply, prices rise; conversely, when global supply increases relative to global demand, prices fall. When the US increases its output, it increases global supply, which puts downward pressure on the global price of oil.

Further, the global price is the true price of oil. When we produce oil at a lower cost relative to foreign nations, we sell it to them at the global price and the remainder is revenue. If we were to ban the export of oil, US oil producers would sell it here for the global price, which would expect to be higher due to restricted supply and retaliatory trade policies by other nations.

You see, you’re confusing cost of production with price. A simple mistake. I hope I’ve explained everything clearly.

WeekendAtBernankes on March 16, 2012 at 5:09 PM

Comment pages: 1 2