Posted by
Michael DeWeese on Thursday, August 07, 2008 2:47:55 PM
Our Strategic Petroleum Reserve is roughly enough oil to help America for about 3 months of foreign oil supply disruption. Junior Senator Obama wants to tap into this reserve to lower the price of gas and heating oil in America.
He proposes we withdraw 70 million barrels of oil. The SPR contains 707.2 million barrels of oil. The U.S. uses 20,730,000 barrels per day. The oil withdrawal would be about 3 and a half days of oil for America. This would lower the price of gas within 2 weeks according to Junior Senator Obama, but for how long?
Once this 3 and a half days worth of oil was used up, we would be back to buying oil on the open market. Prices would quickly recover from any blip in price reduction, since we aren’t adding any long term new supply. Only opening oil exploration and drilling in new areas would do that.
This would be like taking the gas out of the gas can for your lawnmower and putting it in your car gas tank one day. You pay less for your total gas bill that week, but the next week, you have to fill up your car again AND fill up the gas tank to use for your lawnmower at full price.
This is not what the Strategic Petroleum Reserve is for.
When President Bush took office, the Reserve was at around 550 million barrels. After 9-11 it was increased over several years to over 700 million barrels. This was because of fears terrorists would make attempts to disrupt oil flow to cripple the U.S. economy.
Since then, Iran has emerged as a full time threat to oil traveling through the Strait of Hormuz and the Gulf of Oman. If Iran starts attacking shipping in the Gulf, supplies of oil would be drastically reduced until Armed Forces could eradicate any threat Iran can pose to shipping. This could take many months or longer, depending on how soon Armed Forces could locate and destroy any missile and naval forces of Iran. If Israel is forced to use military strikes against Iranian nuclear facilities, one sure response will be Iranian disruption of the Strait of Hormuz and the Gulf of Oman.
This scenario is all the more likely as Iran stalls on talks to cease Uranium enrichment and gets closer to having the means to assemble a nuclear bomb or a dirty bomb. The prospect of this creates the dire threat of death to Israel. If Israeli intelligence indiacates Iran is close to acheiving this goal, Israel will be forced to act. Even if they do not have the weaponry to successfully eradicate the facilities, many of which are underground or burrowed into mountains, they will need to do something to destroy what they can and slow down Iranian nuclear progress.
Using the reserve to try to influence price would net less benefits than the gas tax holiday that had been previously proposed for the summer of 2008 that Junior Senator Obama decried as a political stunt. The decrease in price would be far less, and the decrease would last only a few short weeks. The detriment of this would be a crippling of the U.S. economy should Iran feel the need to attack shipping in the Gulf of Oman. Making this proposal not even worthy of being called a political stunt, maybe a political LSD trip.
Brain Dead Republican