Monday, September 27, 2004


The Petroleum Reserve: Hurricane's Yes, Iraq No!

Why release supplies now?

Is this a flip-flop on Bush's part? Back in the summer, Elephant called on the President to release oil from the strategic petroleum reserve as instability in Iraq pushed prices into the mid $40/bbl range. But President Bush choose not to do so and the voting public seemed to take higher gas prices in stride and even Elephant seemed to agree that we should probably keep filling rather than tapping the reserves.

Now oil prices are back in the range they were this summer, but strangely, Bush is releasing supplies from the petroleum reserve. The difference? This time a hurricane, rather than Middle East instability is the reported cause for prices spikes.

The Bush administration announced Thursday it would provide U.S. refineries with "limited quantities" of crude oil from the nation's emergency stockpile to help offset supply disruptions along the Gulf Coast from Hurricane Ivan.

As opposed to a few months ago when the line was:

“it would weaken the country in its war on terror�

Maybe the difference is the election is just around the corner. Politics, you gotta love it.

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