Berkeley CSUA MOTD:Entry 49987
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2018/05/28 [General] UID:1000 Activity:popular
5/28    

2008/5/17-23 [Transportation/Car, Politics/Domestic/President/Bush] UID:49987 Activity:nil
5/17    Bush suspends oil reserve deliveries to soften the gas price.
        Good idea (lowering price) or bad idea (less gas in the reserves)?
        http://www.msnbc.msn.com/id/24672293
        \_ Don't you mean "Bush agrees with Congress to suspend oil reserve
           deliveries after they threaten veto?"
           \_ Veto doesn't mean what you think it means.
        \_ Bad because such a tiny amount of oil won't make a dent to the oil
           or gas price.  Good for the politicians who initiated it though, as
           election is coming up.  If oil or gas prices doesn't drop, such
           initiative won't hurt them.  But if prices does drop for whatever
           other reason, they can say "See, we made the price drop."
2018/05/28 [General] UID:1000 Activity:popular
5/28    

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Cache (2491 bytes)
www.msnbc.msn.com/id/24672293
WASHINGTON - Responding to congressional pressure, the Bush administration on Friday said it is suspending oil deliveries into the government's Strategic Petroleum Reserve for the remainder of the year. The move came days after Congress passed legislation requiring President Bush to temporarily halt shipments into the reserve in hopes of lowering gasoline prices. The decision came as Bush, visiting Saudi Arabia, sought to get the Saudis to pump more oil. Saudi Arabia announced it decided a week ago that it increase production by 300,000 barrels a day in response to customer requests, although it also told US officials it believes world supplies are sufficient to meet demand. The Energy Department said it will not sign six-month contracts schedule to have begun starting July 1, for the acceptance of 76,000 barrels of oil a day. The department also plans to defer deliveries under existing contracts once the legislation passed by Congress late Wednesday becomes law. Bush had opposed halting the shipments, arguing that such a relatively small amount of oil would not influence prices. The reserve, a system of salt caverns on the Louisiana and Texas Gulf coast, is 97 percent full, holding 701 million barrels of crude. The stockpile, currently sufficient to cover two months of oil imports, is kept as a cushion in case of a major disruption of oil supplies. It's not clear how much of an impact -- if any -- the interruption of deliveries into the reserve will have on oil or gasoline prices. Crude oil prices were about $126 a barrel and held firm Friday on the New York Mercantile Exchange, despite the US and Saudi announcements. Both the House and Senate by lopsided votes this week directed the president to suspend the oil SPR shipments with both Republicans and Democrats saying it made no sense for the government to take oil at today's prices. The crude oil would better be left on the market to increase commercial supplies, they said. The government accepts the oil in lieu of royalty payments that otherwise would go into the US Treasury on oil taken from US land and offshore waters. Administration officials emphasized they are not actually "buying" oil, but critics say the US Treasury in any case is losing revenue. This material may not be published, broadcast, rewritten or redistributed. US halts shipments to oil reserve May 16: MSNBC's Mike Viqueira reports that President Bush will suspend oil deliveries into the government's Strategic Petroleum Reserve.