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Bush Says He Won't Tap Oil Reserve to Stem Price Rise
May 20 (Bloomberg) -- Rising oil prices don't constitute a crisis and are no reason to tap into the U.S. Strategic Petroleum Reserve, President George W. Bush said.

"In my judgment it does not rise to the level of a national emergency,'' Bush said in an interview with television reporters at the White House. He blamed strong demand for rising prices and said oil consumers are paying a "risk premium'' in part because of concern about terrorism and disruption of supplies from Iraq.


https://quote.bloomberg.com/apps/news?pid=1...cIOVRE&refer=us

The absolute cheapest in my neighborhood is $2.39/2.49/2.59 -- and rising almost daily.
Roz

Edited: FarSeer on 21st May, 2004 - 7:47am

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Although I hate the high prices and would love to see reserves released to lower the price I am paying, I must admit I think President Bush is correct. To me, an emergency is when we don't have enough supply to meet demand, not when the price is more than we think we should have to pay.

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Exactly. And the reserves are called "strategic" for a reason! What do we do when those reserves are used up? They wouldn't last more than a few days, at most, and then what? I can't believe the Prez is being pressured to do this.

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It's all politics. This is an election year after all. Don't you remember back in the winter of the last election, when they released some of these reserves because home heating fuel prices were so high. I didn't agree with it then either. An emergency isn't that prices are high, it is that supply isn't sufficent. In my opinion.

By the way, have you seen the reports that say that when you factor in inflation we are paying less for a gallon of gas now then we did in the 80's or people did in the 50's? Doesn't make it any easier, but it is interesting, just the same.

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No, I haven't seen that, but of course that would be circulating now, just when the prices are so high. Seems like "calming the masses" stuff to me.

IMO
Roz

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Do you realize that the people/organizations who prosper most from gasoline are government agencies? Just like with tobacco and alcohol, government, through taxes, get far more of the money than the oil companies. The oil companies only need to make a few cents/gallon profit, Federal government taxes are at least $.35/gallon, plus whatever the state adds.

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While it is true that each gallon of gas is heavily taxed in the US, there can be an argument made that we all who drive vehicles get a benefit from it. This money goes to our highway fund (the federal government) and to the state road repair funds generally. We drive the roads and this is one of the ways we pay to keep them driveable. If we lower the tax on gas, we also have to increase some other tax by the same ratio in order to maintain the status quo.

Of course, what our government does with all the money it collects is an entirely different topic we could probably discuss at length.

By the way, I filled up this morning and paid $2.11 per gallon for regular.

Edited: tenaheff on 21st May, 2004 - 1:23pm

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Living in Michigan, I am very suspicious about claims that gas taxes go to road repair. I always heard how bad the roads are here, but this is ridiculous.

We do all benefit from gas taxes. But the gas taxes go into the general fund, along with the tobacco taxes, income taxes, and all the others. Then they get disbursed to various causes that have nothing to do with roads or other infrastructure.

However, I stand by my original statement. Government is the biggest beneficiary from gasoline profits. If they really wanted to lower gas prices (and thus food, clothes, and everything else that is shipped), they could start by reducing those taxes. That would have far more effect than releasing any of the strategic oil reserves.

The strategic reserves are so small, all they can do is help the military last for a while under emergency conditions. Drilling in ANWR starting 5 years ago would have helped, but that is out of the question, apparently. This will, however, help Texas, Oklahoma, and North Dakota oil companies get going again.