NationStates Jolt Archive

http://money.cnn.com/2005/08/31/news/spr/index.htm?cnn=yes

NEW YORK (CNN/Money) - Energy Secretary Samuel Bodman said Wednesday that the White House plans on tapping the nation's Strategic Petroleum Reserve to help refiners hurt by Hurricane Katrina.

Bodman said in interviews televised on CNN and other networks that officials have not determined the amount of crude oil that will be drawn from stockpiles, but that it would be a loan to refiners.

"The SPR was put in place specifically for this kind of an event," Bodman said in one interview. "We now have, in some instances, problems with getting crude to some refineries."

The reserve is the government's emergency stockpile of crude oil, which is overseen by the Energy Department. The oil reserves are estimated at more than 700 million barrels stored in underground caverns in Louisiana and Texas.

I'm not surprised if you have oil rigs washing up on beaches.

I'm not surprised if you have oil rigs washing up on beaches.

I saw an oil rig floating down a flooded street this morning on the news as I left for work.

I saw an oil rig floating down a flooded street this morning on the news as I left for work.

Funny sight indeed. Fancy one ending up in your backyard?

"It's a bird!, it's plane!, nope it's an oil rig"

Okay, here's where I may surprise some people with my view on this. Politically, this is a good move, even if it's only symbolic. Very few people understand that 1) crude isn't currently the problem and 2) that opening the strategic oil reserve won't do anything to lower gas prices, but they want to see it done, because it's been done in the past to try to alleviate gas prices and they think it's just that simple.

As I said in another thread on this subject, I haven't given Bush any crap for not doing this because crude oil supply isn't the real problem--refined petroleum products are, and opening the strategic reserve won't change that any, assuming they can even access the reserve after this storm.

So it's a symbolic move, but at this point--as I tried to point out in my Nero thread--symbolic moves are important. It's important that the nation, especially those who are suffering more, think that their president cares more about alleviating suffering than he does about playing golf or playing guitar.

Okay, here's where I may surprise some people with my view on this. Politically, this is a good move, even if it's only symbolic. Very few people understand that 1) crude isn't currently the problem and 2) that opening the strategic oil reserve won't do anything to lower gas prices, but they want to see it done, because it's been done in the past to try to alleviate gas prices and they think it's just that simple.

As I said in another thread on this subject, I haven't given Bush any crap for not doing this because crude oil supply isn't the real problem--refined petroleum products are, and opening the strategic reserve won't change that any, assuming they can even access the reserve after this storm.

So it's a symbolic move, but at this point--as I tried to point out in my Nero thread--symbolic moves are important. It's important that the nation, especially those who are suffering more, think that their president cares more about alleviating suffering than he does about playing golf or playing guitar.

I assume most of the refineries where Katrina turned up will be quite non-functional for while meaning other refineries will be basically at 100% when the reserve kicks in.

I assume most of the refineries where Katrina turned up will be quite non-functional for while meaning other refineries will be basically at 100% when the reserve kicks in.
Problem is that US refineries are already operating at nearly 100% capacity, and have been for the last couple of years. Whenever a refinery has gone down for non-scheduled maintenance this year, gas prices have gone up, simply because the supply has been restricted. Now, at least 9% of the refining capacity of the entire US is down, even if temporarily, and that's going to cause major shortfalls, no matter if Bush empties the strategic reserve.

Like I said, it's largely symbolic, but symbols are important right now, because they're all a lot of those people have. But it won't change the price of gas, and I'd be surprised if very much of the reserve winds up being released.

Problem is that US refineries are already operating at nearly 100% capacity, and have been for the last couple of years. Whenever a refinery has gone down for non-scheduled maintenance this year, gas prices have gone up, simply because the supply has been restricted. Now, at least 9% of the refining capacity of the entire US is down, even if temporarily, and that's going to cause major shortfalls, no matter if Bush empties the strategic reserve.

Like I said, it's largely symbolic, but symbols are important right now, because they're all a lot of those people have. But it won't change the price of gas, and I'd be surprised if very much of the reserve winds up being released.

And these refineries have a bad habit of starting on fire randomly (due to the usual lax safety standards). It's a worry.

It's all politics. In politics, being seen as doing something about a problem is more important than actually doing something about the problem.

This is the only political truth that W understands.

:rolleyes:

Build more refineries and open up more oil sources in the country would be a start me thinks... the enviromentalists would have a fit though :eek:

Build more refineries and open up more oil sources in the country would be a start me thinks... the enviromentalists would have a fit though :eek:
Or we could work harder on getting alternative fuel sources, since we're going to need them sooner rather than later.

This does nothing, except maybe to help build further crude reserves in this country. Prices will plummet after this is over, and I'm afraid that it may make refiners repair refineries slowly. They have less incentive to fix them now.

Funny sight indeed. Fancy one ending up in your backyard?

"It's a bird!, it's plane!, nope it's an oil rig"
Would you get to keep it? I mean it is on your property after all.

Build more refineries and open up more oil sources in the country would be a start me thinks... the enviromentalists would have a fit though :eek:
Reducing the number of different gasoline blends used in different regions around the nation would help too. As it stands now gasoline produced for consumption in New Jersey can't be transported and sold in California because they have different laws regulating gasoline additives.

In a way I'm glad that gas prices are going through the roof.

In the short term it's a pain in the ass, but BECAUSE it's such a pain in the ass people are going to really start agitating for affordable alternative fuel sources. It's LONG overdue.

I've now heard on the news that physical shortages are developing in some parts of the US. Some gas stations are actually out of gas.

I've now heard on the news that physical shortages are developing in some parts of the US. Some gas stations are actually out of gas.
That's not surprising. Most states have laws on the books that force stations to base their prices on what the shipment cost, so lots of people are fueling up now, knowing that the next shipment is going to be decidedly more expensive. I've done it twice, even though my car only has about a 11 gallon tank and gets almost 30 mpg, because I'd rather pay $2.80 now (which is what it went up to yesterday) than $3.50 on Friday, which is about what I expect it to hit. If it's lower, I'll be pleased.

That's not surprising. Most states have laws on the books that force stations to base their prices on what the shipment cost, so lots of people are fueling up now, knowing that the next shipment is going to be decidedly more expensive. I've done it twice, even though my car only has about a 11 gallon tank and gets almost 30 mpg, because I'd rather pay $2.80 now (which is what it went up to yesterday) than $3.50 on Friday, which is about what I expect it to hit. If it's lower, I'll be pleased.
I only paid $2.559 yesterday. You got ripped off.

That's not surprising. Most states have laws on the books that force stations to base their prices on what the shipment cost, so lots of people are fueling up now, knowing that the next shipment is going to be decidedly more expensive. I've done it twice, even though my car only has about a 11 gallon tank and gets almost 30 mpg, because I'd rather pay $2.80 now (which is what it went up to yesterday) than $3.50 on Friday, which is about what I expect it to hit. If it's lower, I'll be pleased.
I've been telling everyone to fuel up long before they said to do so on the news. I myself was only able to fuel up yesterday. It was still pretty cheap, but the gas prices were about a nickel higher. Any normal weak, and I'd be appalled.

I only paid $2.559 yesterday. You got ripped off.

I paid $2.69 at the last station on town that was charging that price. All others went to $2.99.

I only paid $2.559 yesterday. You got ripped off.
I was paying well above that before the storm--gas prices in south Florida are high by US standards.

Standard is already near $3 here. And I can't gas up because the check I deposited hasn't cleared yet. Every day I have to wait the less of that check I get. It's very frustrating.

We're also at about $2.69 for Standard here. I'm just glad I already got my plane ticket to Chicago. Sooner or later those airfares will start going up.