those who refuse to learn from history

[sisyphusshrugged]

We're releasing oil from the SPR to relieve already record oil prices, which have gone up slightly due to recent hurricanes

The US Energy Department said it was preparing to release "a limited quantity" of crude oil from the Strategic Petroleum Reserve to ease shortages resulting from Hurricane Ivan.

The agency said in a statement it "intends to enter into negotiations to make available a limited quantity of crude oil from the Strategic Petroleum Reserve (SPR), to help relieve physical shortages of crude oil supplies in the Gulf of Mexico following recent hurricanes."

Officials suggested that any drawdown, which would come in response to specific requests from refineries, would be small in comparison to the drawdown of 35 million barrels from US inventories in recent months.

"I have authorized these negotiations in response to the physical disruption of offshore oil production and imports in the Gulf Region caused by Hurricane Ivan's destruction," Energy Secretary Spencer Abraham said.

"As this administration has stated consistently, the SPR was designed to protect American consumers against supply disruptions, including natural disasters."

The news came as oil futures neared all-time record levels, pinching US consumers less than six weeks before the November 2 US presidential election.

Crude oil traders shrugged off the news, and pushed prices higher after an initial drop in early trade after the White House confirmed that talks were underway.

Our Fearless Leader had a slightly different reaction when Democratic leaders asked him to suspend acquisitions for the SPR temporarily to relieve prices

President Bush said on Wednesday he would not release strategic oil stocks to curb record gasoline prices while he was waging war on terror and accused Democrats of playing politics on energy.

Bush rejected any solution to the rapid rise in gasoline prices that would use the Strategic Petroleum Reserve, a national emergency stockpile, to give motorists relief at the pump.

Ideas such as halting shipments to the reserve or releasing some of its supplies would leave America vulnerable in the event of a terrorist attack, Bush said.

"The idea of emptying the Strategic Petroleum Reserve ... would put America in a dangerous position in the war on terror," Bush told reporters after a Cabinet meeting.

"We must not put ourselves in a worse position in this war. And playing politics with the Strategic Petroleum Reserve would do just that."

...

When asked what short-term measures he would use to rein in the prices, Bush did not list any new initiatives but lambasted Democrats for blocking his sweeping energy bill.

While Bush warned of the danger of emptying the reserve -- which is stored in salt caverns at four underground sites in Texas and Louisiana -- Democratic proposals range from a temporary halt in shipments to it to releasing a portion of the crude it holds.

as Wampum points out, this is not the first time Our Fearless Leader has come over all populist about energy before an election. Sadly, that time it didn't take.

When Mr. Bush was asked about energy policy in the 2000 Presidential debates, he said:

First and foremost, we've got to make sure we fully fund LIHEAP, which is a way to help low-income folks, particularly here in the East, pay for their high fuel bills.

Once Mr. Bush got into office, we find that:

The Low Income Home Energy Assistance Program (LIHEAP) will face a cut of over $500 million if the budget for FY2002 released today by President George W. Bush becomes law.

and as Molly points out, people froze to death, despite the fact that there was $300 million approved by Congress for emergency funding. Bush refused to spend it.

Now ask yourself how interested he's going to be in your pocketbook if he doesn't have to worry about being re-elected.

Comments

[snuh.livejournal.com]

Administration may borrow oil from national reserve to offset hurricane losses
By Tom Raum
ASSOCIATED PRESS
10:34 a.m. September 23, 2004

WASHINGTON – The Bush administration said Thursday it is weighing a request from several U.S. refiners to borrow crude oil from the nation's emergency stockpile to help offset supply disruptions along the Gulf Coast from Hurricane Ivan.

"Certainly Hurricane Ivan had an effect on the supply of oil imports and production in the Gulf of Mexico," said White House spokesman Scott McClellan. "It has limited some refiners' access to crude oil supplies."

He said that the Department of Energy was reviewing the requests.

In the past, President Bush has resisted calls to tap into the Strategic Petroleum Reserve, located in Texas and Louisiana, in an effort to counter soaring prices. Bush had criticized President Clinton's move in the fall of 2000 to tap the reserve, saying it was a political effort to help Democrat Al Gore, Bush's opponent in the 2000 election.

"We've always said the Strategic Petroleum Reserve was set up to protect against physical disruptions of oil supplies such as national emergencies or natural disasters, and not to manipulate prices or for political purposes," McClellan told a White House briefing.

McClellan confirmed reports that several U.S. refineries had asked to borrow for short periods of time small quantities of oil from the reserve supply. His comments appeared to suggest that such a move by the administration was likely.

McClellan said it was important "to make sure that our system continues to operate until production and imports resume."

Hurricane Ivan shut down oil refineries in the Gulf Coast and kept tankers from ports. The drop in supplies from the Gulf – which accounts for a third of domestic oil production – helped push up oil prices.

Temporary loans of oil could help ease crude oil prices, which are a particularly sensitive issue in the presidential campaign.

Democratic presidential candidate John Kerry has said the United States should divert oil being used to fill the stockpile in the short term and bring that oil to market to decrease prices.

In the past, the White House has contended that such a move would have only a negligible impact on pump prices. Kerry has also said the administration should do more to demand that Saudi Arabia and other oil-producing nations increase supply.

The expected administration action drew approval on Capitol Hill from Sen. Charles Schumer, D-N.Y., a proponent of using oil from the reserve. "This is the first crack in the armor," Schumer said. "Finally this administration is willing to consider releasing petroleum reserves to help bring down prices. They should realize this is the best way to bring down fuel costs in short term."

Congress created the oil stockpile in the 1970s in response to the Mideast oil embargo. It holds about 670 million barrels of oil in underground salt caverns in Louisiana and Texas.

McClellan pointed out that the Bush administration had made such loans of oil before – in October 2002 when Hurricane Lili disrupted Gulf Coast shipments.