Among the things that make you go “huh” comes the tri-forked tongue of Obama, his Dem lawmakers and his own Treasury Secretary on the latest rise in oil prices. On a day when the Dow tumbled 228 points on a plethora of issues, including Spain’s credit downgrade, unrest in Saudi Arabia, the latest US unemployment figures, China’s trade deficit, and in general the effect of rising oil prices on various global economies, the mixed message from liberal leadership is nothing short of headscratching.
It was just yesterday when the NYTs confidently announced that the rising oil prices and ME unrest was “unlikely” to derail this “recovery” that main street has yet to feel. This was amusing enough, as Clay Waters over at NewsBusters noted, that $3.57 per gal gas at the pump under Obama wasn’t worrisome while $2.55 per gal under Bush in 2005 was a prediction of a recession.
Well, hindsight notes that it was housing – not oil prices – that was the catalyst for the 2008 crash, and possibly aided by outside forces with a wider agenda in mind.
Despite the claims that the economy was well braced for high oil prices, Obama has been considering tapping the US Strategic Petroleum Reserves for an event it was never created for… prices. Even so, his mouthpieces were careful this was obvious to most who understand the whys and whens of that supply, and busy peppering their talking points with supporting reasons for doing so.
White House spokesman Jay Carney insisted Monday that while opening the reserve is under consideration, such a decision would be based on the possibility of a “major disruption” of oil production.
Carney spoke one day after Bill Daley, President Obama’s chief of staff, said the president is considering tapping the reserve. Unrest in the Middle East has sent the price of oil skyrocketing to $107 per barrel on Monday.
“There are a number of factors that go into it, and it’s not price-based alone,” said Carney, who in response to questions was adamant that he was not walking back Daley’s comments.
“It’s important to look at history … and the times when it has been used. So I wouldn’t look to a price threshold. The issue here is disruption. Is there a major disruption in the flow of oil? That’s obviously a factor.”
But there is no imminent disruption to warrant such an action… despite the lip service.
But his fellow Dems, desperate to lessen the impact on an economy for which they cannot escape culpability, are already floating a bill to tap those reserves. Unlike the WH, however, they don’t disguise their purpose… to affect the price at the pump.
Meanwhile, Geithner – also busy threatening the House Appropriations subcommittee to *increase* foreign diplomatic aid or “…risk losing ground to China” – took a more noncommittal approach to the SPR, and it’s need or impact.
Treasury Secretary Timothy Geithner told lawmakers Thursday that the United States and other nations can tap oil reserves if they’re needed to restrain prices and keep the global economic recovery moving forward.
Geithner downplayed the risks that political unrest in the Middle East and North Africa was posing a major threat to the nation’s economic recovery or could cause a long-term spike in inflation during testimony before the Senate Foreign Relations Committee.
“It’s important to note that there is considerable spare oil production capacity globally, and we and other major economies possess substantial strategic reserves of oil,” he said. “If necessary, those reserves could be mobilized to help mitigate the effect of a severe, sustained supply disruption.”
His views that rising oil prices will boost inflation are similar to those held by Federal Reserve Chairman Ben Bernanke, who told lawmakers this week that they would probably have a short-term effect and wouldn’t require action from the central bank.
What a circus… do these people talk to each other, or what? Leadership… what a joke.
But if Sen. James Inhofe (R-Okla), ranking member of the Senate Environment and Public Works Committee, is correct, Obama won’t be tapping those reserves because it conflicts with his desire for higher gas prices.
Me, personally? Hang no… do not tap these reserves for price control. But what with more concern about China’s economy, which lessens their demand for oil and counteracts the fear of disruption, oil prices closed lower today at $104 than it did on Monday. Considering the price of oil back in 2007-08, it seems premature to tap this reserve, primarily there for disruption and not manipulation of market prices.
So now we get to witness that battle Obama internally faces… let the prices go up, as he has stated in the past he desires to force behavioral changes? Or acquiese to his Dem Congressional members? And will Geithner start backtracking now on his confidence in the US economy, being able to withstand high oil prices?
Have the popcorn ready….
Vietnam era Navy wife, indy/conservative, and an official California escapee now residing as a red speck in the sea of Oregon blue.
After watching the sting video on NPR. The stupidity on display of our Sec of State, VP and above all else the DNI, just to name the most recent, I have come to this one conclusion. And I think this movie clip sums it up perfectly!!
http://www.youtube.com/watch?v=I4kqs-BvDnw
Last time I read about USA gasoline refining capacity was a few years back.
However, we have not allowed even one new refinery to come on line in that time, so the figure probably still holds:
We must import ~6% of our oil already refined into gasoline because we lack refining capacity.
This is especially a problem when we force different states to sell various blends of gasoline.
So, right now there are full tankers near our US shores waiting to off load their oil.
There has been a glut of oil but a lack of refining capacity for the USA.
No reason to open and use up reserves that are meant for WARTIME.
But Obama seems intent on weakening the USA at every turn.
A way to force down prices on oil is to let the Oil Producing nations know that we mean to;
Drill baby Drill.
Petroleum Reserve is not for a political stunt.
Well, it might help to produce more of our own oil.
Usual excuse #1 – it will take too long to come on-stream.
Response: so what? By that logic we shouldn’t bother doing anything about our growing energy problem, even the vaunted green energy projects. Think we’ll still be using oil in 2020? 2030? Then for pete’s sake let’s get started now so at least some of that future oil will be domestic.
Usual excuse #2 – there’s not enough to make a difference.
Response: wrong. Every barrel we produce is a barrel we don’t have to import. Our oil import tab is the single biggest component of our massive trade deficit. Also, when supplies are tight, it’s not just the extra barrels that rise in price – every barrel is priced higher. Small differences in supply can make a big difference in the price of the barrels we’ll still be importing in the future.
Usual excuse #3 – we need to reduce carbon emissions and/or increase efficiency
Response: this is not incompatible with increasing our own supply, unless you think we can increase efficiency to the point that we’re no longer using any oil (we obviously can’t).
If the Democrats want higher oil/gas prices to give people the incentive to buy more efficient vehicles or take alternative transportation, the wrong way to do that is by letting the world market price skyrocket so we can send extra money to foreign suppliers. The right way (assuming you agree with the goal, and I realize most people on this board don’t) is to raise the price consumers see via fuel taxes while at the same time keeping the price of the raw commodity as low as possible. The choice is a higher price that goes overseas versus a higher price that reduces our deficit.
“Obama will hold a news conference at the White House tomorrow to talk about rising energy prices among other issues,” a senior white house said.
11:15 a.m. Eastern Time
CBS News
Well that ought to ruin a perfectly good morning, Nan G…. LOL
The left wants to limit the average American’s ability to move around and make us more dependant on government built transportation.
And of course energy and food prices aren’t included in the “official” inflation index; which is why inflation figures aren’t making the head-lines. Don’t you just love how the administration can play the statistics game to make it seem like we’re not on the Titanic headed full steam towards an iceberg?
On an unrelated side-note, I’m sitting here watching the news of the Japanese earthquake and tsunami. I have quite a few friends there, and my fiancee; prayers appreciated. Feeling thankful that there are many of our service men and women there to help with the rescue and recovery efforts.
Dithering, dithering, dithering . . . dither baby, dither!!! What comes out . . . obfusticate, mislead, cover up, protect you buddy, cyoa, . . . then . . . yep, just exactly what we knew would happen . . . we did the right thing. Then . . . dither baby, dither!!!! Sounds to me like a great POTUS on Platform shoes!!!
Well Doug the track record of government efficiently and orderly promoting change in people’s consumption patterns is dismal. How a person chooses their mode of transportation is NONE of the government’s business, this is a matter of individual decision based on their individual circumstance. Surely, you wouldn’t insist an a person in Alaska to drive a Chevy Volt? It’s silly, but that essentially is what the government is promoting by insisting on a cookie cutter approach.
The market will sort out the winners and losers on what fuel is appropriate for transportation and meddling by the government only serves to confuse the situation. When electrics and hybrids become cost effective, then and only then will they or should they take a significant foothold in the market BY THE CONSUMERS CHOICE, not by the numbskulls in Washington DC.
What you haven’t even considered is the natural gas market for transportation uses which is the exact same mistake the government morons are making as well. If it is not cost effective, it should not be done. We can not subsidize the entire country’s transportation infrastructure for people to drive electrics or hybrids and there aren’t enough rich people to pay for all that. No, the choice is not about raising fuel taxes which fall disproportionately upon the poor or funding more petrodollar terrorist states. The choice belongs to the American People, i.e. the consumers and producers, not the idiots in Washington – butt out! Allow the market to work without meddling, we have many choices IF the morons in DC would stop meddling, beyond natural gas, domestic drilling there is also Coal to Liquids /Oil technology (CTL) and diesel fuel. CTL at this time is very cost competitive ($40/barrel) in making diesel oil were it not for government interference. 100s of thousands of domestic tax paying jobs would be quickly created by allowing CTL operations thus diverting money that would have gone to petrodollar terrorist states directly into our economy to the tune of some $300 billion a year. South Africa perfected the CTL process so it’s not like it will take years to develop it here in the US. What you continue to forget is the government looses tax revenue when it incompetently insists on outsourcing our energy supplies and worse these policies have not saved one drop of oil. But people like you continually want to place a greater burden upon the taxpayer to cover up the incompetence of bureaucrats pontificating on carbon reduction policies that LOWER government tax revenue.
For the existing process to request oil from the SPR, go here – http://www.fossil.energy.gov/programs/reserves/spr/emergency_oil_requests.html
It requires the refinery to repay the oil in kind.
Statutory criteria for a drawdown – http://www.fe.doe.gov/programs/reserves/spr/spr-epca.html
So the President and Sec of Energy can at least do a test draw down of 5,000,000 barrels. As for those Democrats in Congress, they should read the law before proposing new laws.
For the history of the SPR and the Naval reserves – http://www.fe.doe.gov/programs/reserves/index.html#SPR You will find out things like in 1998 President Clinton sold to Occidental Petroleum Naval Petroleum Reserve 1, Elk Hills, for less than $4billion. I find it amusing US oil shale production was abandoned after the $40/barrel oil prices collapsed to $15/barrel. Alas BLM and an Indian tribe now control the oil shale. Though since 2005, the US has been looking at oil shale again.
Here is the demonstration of Obama’s incompetence where energy is concerned: http://hotair.com/archives/2011/03/11/shocker-domestic-oil-production-down-foreign-imports-up/
By next year domestic crude oil production from the Gulf of Mexico will be down 25%!!!!! from when the idiot took office. From over 1.6 million barrels a day to 1.2 million…INCOMPETENCE!
And how pray tell is this oil to be replaced? Outsourcing, costing the government more tax revenue and royalties worsening the debt situation. Yeah, this really inspires confidence in the centrally planned economy, i.e. meddling, advocated by liberals. So Doug how’s this going to end? Are you feeling the tax revenue yet?
As I indicated yesterday on another post, the lackeys for Obama have been out there in force telling us not to worry. The economy is well situated to absorb the rise in oil and food prices. As such, one has to assume the President today, no matter what he says will be basically feeding us another line of bull! One thing for sure, they WILL NOT allow the development of our own resources as that would be against everything these Socialist bastards stand for!
@dscott:
Hot Air has added a few more points.
http://hotair.com/archives/2011/03/11/obamas-curious-claims/
OBAMA:
“We’re adapting. We’re producing more oil, and we’re importing less,” he remarked.
JAZZ SHAW:
Sadly, it seems that the President was basing his claims on some recent comments by Ken Salazar. While they sound great on paper, Ken was talking about the total number of oil rigs in the gulf, not the total amount of oil being produced. Jack Gerard of the American Petroleum Institute attempts to straighten out the math for the Oil Analyst in Chief.
Salazar’s numbers distort the true number of working rigs in the Gulf of Mexico.
According to BAKER HUGHES:
* Four days before the Deepwater Horizon accident there were 55 rotary rigs actually drilling offshore in the Gulf of Mexico.
* On May 28, 2010, when the administration announced the six-month moratorium on deepwater drilling, there were 46 rotary rigs operating in the Gulf.
* Last week, 25 rotary rigs were operating in the Gulf of Mexico.
So the fact that there is an “all-time high” number of rigs in the Gulf ignores the fact that most of those rigs are not working. Claiming an increase in idle rigs in the Gulf as a success story is like claiming the job market is great because a lot of people are unemployed and available to work.
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But I bet Obama is going to give all kinds of personal attention to his March Madness ladders.
LOL!
Obama gets some relief as the catastrophe drops oil prices due to expected lower demand from Japan .. lucky break