Obama’s Energy Strategy

President Obama’s energy strategy, such as it is, is quite tactical in scope and nature. His release of 30 million barrels of oil from the U.S. Strategic Petroleum Reserve, supposedly to curb gasoline prices, is a near-term only mitigation.

Release Chaff - Spraying Out US Oil Reserves to Curb Criticism
Obama: 30 Million Barrels Gets How Many Votes Again?

That term being defined as the length of time remaining in Obama’s first term in office. 😉

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8 Responses to “Obama’s Energy Strategy”

  1. Alan Scott Says:

    I agree that this is a short term fix, but Obama should have done this months ago . Now that he has done it we can argue that he has conceded that increasing supply is good for the economy .

  2. jonolan Says:

    I disagree. A release of oil, by nature a one-off event, can’t affect barrel or pump prices much. Speculation values might drop a bit for a week or two but that’s about the extent of it.

    With three wars going and a fourth on the horizon, all it told the speculators is that the US government would be soon purchases 30 million barrels of sweet light crude.

  3. Alan Scott Says:

    He could do a few more releases . Another 30,000,000 barrels, what is that, almost $ 3 Billion a pop ? Another 30,000,000 barrels released would almost wipe out a few days deficit . Cut the budget gap and get rid of that evil oil at the same time .

  4. jonolan Says:

    The problem with that idea is that the US SPR only has approximately 720 million barrels capacity and there’s a limit to how much that should be released – and how quickly it should be replaced – with the current situations that might impact global petroleum supplies.

    But, depending on his polling numbers, Obama will likely do as you hope.

  5. Alan Scott Says:

    It worked for Bill Clinton. Then the next Republican President can replace the oil at a much higher price. I still think we can make an argument that Obama has conceded that increased domestic supply does matter. Pointing out examples of his hypocrisy might push a few moderates to the right or even give a long term liberal a moment of conscience. It does happen, and when it does they become quite the zealous convert . A Saul to Paul conversion.

    I am thinking of author David Mamet. He wrote a piece three years ago ” Why I Am No Longer a ‘Brain-Dead Liberal’ “.

  6. jonolan Says:

    True; it worked for Clinton – but Clinton did it in fall during a time when there was a huge shortfall in heating oil reserves. Obama did it in summer and when pump prices had been falling daily for weeks.

    But then, that’s Obama – a failure at everything but campaigning on empty not-quite-promises and the color of his skin.

  7. Alan Scott Says:

    I have to admit that gasoline prices are going the opposite way from where I predicted . I can only guess that the 30 million barrels that Obama released , combined with what the other countries did not overwhelm the hedge fund speculators . He may have to do a couple more releases.

    But it got me thinking about ANWR, which the Sierra Club and the rest of the Green idiots stopped . ANWR had the potential to produce 1 million barrels per day . So if ANWR was producing, it would be the equivalent of an Obama oil release every 30 days .

    I remember arguing with idiots back in 04 and reading how ANWR would have no impact on oil prices .

  8. jonolan Says:

    You have to remember that pump prices were already steadily (daily!) falling for weeks before Obama released those 30 million barrels and the other countries released a total of 30 million more.

    It doesn’t look like it was needed or that it had an effect. Then again, we can’t tell if prices would have risen, or failed to drop more, without that release; counter-factual – “it would have been worse” – arguments are like that.

    ANWR, or any domestic production increase is a long-term resolution though, not a short-term one. On that I can agree the other side. It’d take 2 – 4 years for that oil to hit the market. Admittedly though, just the commitment to drill would probably drop the price for a bit.

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