With Hurricane Gustav coming what is the Strategic Petroleum Reserve for if not a situation such as this?

Question

Crude oil has jumped 5 dollars this week because of this. We, as a nation have over 700 million barrels of oil, bought and paid for, in our Strategic Petroleum Reserve. Barrels that could be made available to industry in case of any serious or otherwise disruption in the production/flow of oil. I get the feeling that they have a " why should we care attitude" (the Dept. of Energy). Just announcing its available would decrease that 5 bucks more.

Answer 1

The Strategic Petroleum Reserve is for WARTIME when this Country cannot import our total fuel needs.  It is for a time when we as a Country do not have the necessary fuel for commerce (delivery of food, etc) to we the people in cities and towns around the Country.  A hurrican is NOT a National Emergency.

Answer 2

To be honest, (Yes it pains me to admit this) if Bill Clinton hadn't deregulated oil. We would still be paying $20 per barrel.

Answer 3

The SPR exists for serious petroleum emergencies which threaten supplies overall and have potential long term effects. It does not exist for the purpose of lessening short term transient impact.  

Answer 4

The reserve is for real emergencies.  Not for minor production issues.

Besides - how much sense does it make to use oil we paid $60 a barrel for when we have to replace it with $120/barrel oil?

Answer 5

The strategic petroleum reserve is to supply the military in the event that oil becomes critically scarce and nations begin fighting over dwindling sources.  I'm not saying that I agree with this purpose, but I've got to think that it's not to assure cheaper prices to consumers.

Answer 6

Crude oil has jumped because of the speculation that Gustav will halt production, cause damage, stop shipping, etc....but these prices are based on FEAR, it isn't until these things are reality that we would even think of tapping into reserves.

Answer 7

No

The reserve is for true emergencies.

We have far more oil available if the Democrats would allow drilling of the coast but they are holding it up.

Answer 8

We have to pay for our own car insurance if we have an accident I don`t see why we have pay to insure private oil companies, they want the be treated like humans they should have to pay or set up their own insurance policy.  

Answer 9

Oil prices have changed, oil flow has not. Today oil prices have dropped $5.

Answer 10

War.  As in so foreigners dont cut off your oil supply and suddenly you cant even run a tank to fight with to protect yourself.  Its not for helping you to enjoy a little trip to the coast this summer.

Answer 11

There's no guarantee that the release of any SPR would bring down the price of oil, and in fact, if oil supply is interrupted oil would most likely rise quickly.

I do agree, however, that if supplies are cut due to a hurricane that the Federal Govt. should authorize the release of some of the SPR.