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strategic petroleum reserve
Why Skyrocketing Oil Prices Are Largely Bush's Fault
Even the most fanatical Bushie "expert" can't deny that skyrocketing oil prices are driven by dangerously low stockpiles. Why are they so low? Reuters reports: "Political tensions in the Middle East and violence in Iraq have undermined traders' confidence in security of supply from the region, which pumps a third of the world's oil; Iraqi exports have been repeatedly hit by sabotage attacks, keeping its supplies BELOW pre-war volumes; Traders fear Islamic militants could target oil infrastructure in OPEC's biggest producer Saudi Arabia; Oil production in Venezuela, a big supplier to the US," is still suffering reduced oil output due to a strike believed by Hugo Chavez to have been instigated by Bush operatives. ALL these factors can be traced to Bush's inflammatory, destabilizing global policies. In addition, Bush insisted on transferring oil to the SPR at a time when stockpiles were at their lowest in THIRTY YEARS.
Since 2002, Bush has been removing oil that would have gone onto the market and diverting it to the Strategic Petroleum Reserve. Even after levels were sufficiently high, he continued to divert oil, a move which energy experts said drove oil prices up - Philip Verleger estimated that Bush's move added $8.00 per barrel. The only winners? Oil futures speculators like Goldman Sachs and the oil barons with the SPR contracts - among whom are Bush's top donors. We predicted that after artificially inflating oil prices to astronomical levels, Bush would then "play hero" by artificially driving them down again right before the election by releasing SPR oil. Now, it seems, that very plan may be unfolding - oh, so predictably.
Since 2001, Bush has been filling the SPR, against experts' advice and the pleas of Congressfolk. A Congressional report found that the policy "added to the price of oil in world markets." Philip Verleger, internationally known energy expert and economist, estimated that the SPR fill policy had raised crude oil prices between $5-10 per barrel by the end of 2003 (nearly 30% of the price per barrel). A March 2003 study found that there was indeed a relationship between SPR fill policy and oil prices and that the addition of 25 million barrels to the SPR during late 2001 and early 2002 had added substantially to oil prices. The study predicted that if the administration continued its policy, oil prices would continue to climb. They did indeed, hitting an historic $50/barrel at one point this year.
The Strategic Petroleum Reserve was designed to be available when the nation faces unforeseen shortages or supply line disruptions. The reserve is supposed to be kept at a suggested minimum level and replenished when prices are low and drawn down when oil prices are highest. Clinton made great progress in reducing the deficit and global oil prices by buying oil for the reserve when prices were low. Bush, by contrast, allowed the reserve to unnecessarily dive to its lowest point in three decades, then recently began replenishing the supply when oil prices hit their highest level in months, driving prices even higher for US consumers. Guess who benefits on this deal? Yep! His pals in the oil industry. This is not just a fraud against taxpayers, this is downright TREASONOUS! Read more about the SPR at http://www.ncseonline.org/NLE/CRSreports/energy/eng-23.cfm#_1_1
27-Sep-04
strategic petroleum reserve
23-Sep-04
strategic petroleum reserve
23-Sep-04
strategic petroleum reserve
04-Mar-04
strategic petroleum reserve