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Another bad oil idea
MediaNews editorial
May 16, 2008
THE UNITED STATES established the strategic oil reserve after the petroleum crises of the 1970s to make sure the country had significant supplies in case of a national emergency.
Reserves were to be tapped only if there were a compelling need such as an extended oil embargo, a natural disaster that cut-off of supplies or for military purposes.
To their discredit, our representatives in Congress have decided to cut off shipments of oil into the reserve in a futile attempt to dampen increases in the price of gasoline.
The 70,000 barrels a day of oil that is shipped to the reserve is such a small percentage of the 21 million barrels of oil consumed in the United States each day that it is not likely to have any impact on the price of oil and, thus, no effect on gasoline prices at the pump.
Why members of Congress would think increasing the amount of oil available to consumers by one-third of 1 percent, about what is used in Jamaica, would make any difference is unfathomable.
Most likely they do understand that cutting off new supplies to the oil reserve is fiscally useless, but it might be politically popular as long as the public can be fooled.
In other words, Congress would prefer political pandering to any practical policies that address the skyrocketing cost of oil.
To his credit, President Bush has resisted attempts to cease adding to the strategic reserve, but is expected to cave in to veto-proof legislation.
Cutting off supplies to the reserve makes no more sense than the gas-tax holiday touted by Sens. Hillary Rodham Clinton and John McCain. No wonder the American people lack confidence in their leaders, if this is the best they can do.
Copyright 2008
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