Insurance Claim

Actions of OPEC and free market factors were already in place to bring oil prices down. It is the stated goal of OPEC members to get oil trading between $75.-$80 bbl . The fundamentals for this price reducing goal were already in place, along with market forces which had oil predestined to meet these goals. The Obama administration is simply seeking to capitalize on a pre-existing market dynamic and claim undue credit in order to translate falling pump prices into votes. A scheme that , with the help of the media and an oil-ignorant populace, will likely work.

Release of crude from the SPR is a bad idea, decreases national security and is, in this instance, DEFINITELY politically motivated. If the administration was truly concerned about fuel prices at the pump, they would place a moratorium on federal fuel taxes, and if release of SPR crude were out of "genuine concern" (which it is not) they'd have taken this action , and tooted their horn about it, a few months ago when prices were reaching their peak and still climbing (it wouldn't have helped prices back then, just as it won't in the big picture now, but at least now, in a falling market, it is easy to put forth the appearance that the release of SPR crude is accomplishing something).

Comment by Drilling Ahead on June 26, 2011 at 10:45am I have to agree 100% Chris. Our share of the 60 million barrel release(which would fuel the world for 17 hours) is 30 million barrels. What does President Obama plan to do with the revenue from the 30 million barrels? Is he just using this as smoke and mirrors to get his hands on billions of dollars in extra spending money for Congress? When we replace the 30 million barrels we released-it will be at a higher price and in the end it will just be another colossal waste of taxpayer money.Comment

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