Wouldn't a release of oil from the SPR have more of an immediate impact on oil prices, than offshore drilling?

Question

If the govt. released 1 to 2 million barrels a day from the Strategic Petroleum Reserve (SPR) over the next 45 to 60 days, wouldn't it lower the price of oil by $20 or more per barrel, with a corresponding price drop at the pump?

As is, the SPR has over 727 million barrels in reserve. More than enough to supply our gas guzzling habits for 30 days at full consumption and even longer if there was a war or other emergency which would cause a manditory cutback by the govt.

According to the American Petroleum Institute and their newest $2 million dollar mouthpiece, Senator John McCain, offshore deposits could be drilled and producing oil in no time flat. So why bother having a SPR that is so large?

Answer 1

drilling is the solution

SPR is for EMERGENCIES..like an embargo, not a price increase.

The SPR was released a number of years ago by Clinton and had zero effect on price.

Answer 2

I'm not sure it would have that much effect... it would probably just go on the world market...

I don't think drilling would have that much effect either... for the same reasons...

I find it funny how Republicans think drilling will have some magical change, but this wouldn't...

if one works, the other should....

I think either would maybe bring down the price 10 cents... the problem is much larger...

I don't think either would to any real degree that would "solve" the problem

Answer 3

This is a dumb comparison. 30 days vs. 30 years. I'd rather have the price cut permanently instead of a quick fix.

Answer 4

its called an "emergency" reserve for a reason, and its not a long term solution

Answer 5

The SPR does not exist for the purpose of lowering gas prices, or as a pawn for unscrupulous politicians.

It exists for one reason only:  To supply our military in time of war should our overseas supplies be cut off.  

Any other use can only be due to incredible stupidity or outright treason.

Either of which would fit Obama.

Answer 6

Actually about the same, just the mention of release from spr drive the futures market and look what has happened. Then once release, what happens when there is an emergency...it's gone!  

Answer 7

1 to 2 million barrels a day,this is the same amount democrats said anwar would produce and it would make no difference to the price of oil or gas at the pump now the democrats say releasing this same amount from SPR would have an effect make up your minds.

Answer 8

Releasing the SPR would be a short term fix .  You answered your question" John McCain said off shore deposits could be drilled and producing oil in no time flat so why bother having a SPR that is so large".It sounds like you agree with McCain so why not drill and have a long term solution?

Answer 9

It would.  But a short term solution to a long term problem.  

McCain is so beyond contempt at this point... drill drill, drill, bomb bomb bomb, a simple-minded slogan pusher, with no ideas of his own.

Answer 10

There are some basic economics that are followed with respect to the oil we save and call "Reserves". It should not be confused with "Resouces", which is what we use on a regular basis. Just try to imagine an emergency of epic proportion that required the United States to operate with out oil from the Middle East or South America for some undetermined time, would'nt it be nice to have our "Reserves" to fall back on? That's why they are there.

Answer 11

Funny you should ask that... Bush has vetoed a bill that releases oil from the SPR.

http://www.cnn.com/2008/POLITICS/05/13/c...

Also worth mentioning.. Bush has been stockpiling oil.  This of course created a shortage in the worldwide supply.  Why was he buying so much I wonder..

Another site for those that reject CNN.

http://thehill.com/leading-the-news/bush...

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I find it interesting that cons think the SPR is for emergency use, but feel it is alright for us to use the oil in ANWR and coasts to burn in SUVs.  It's a really strange logic if you ask me.  I have always advocated saving ANWR for the future.. because we will most likely need it.  

What makes oil that is ready being released from the SPR worse than the oil in ANWR that would take quite a while to get?

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It also is confusing to me that they would rather have a permanent fix as opposed to a quick one.  Wouldn't a permanent one be to get off of oil as much as possible?  Wouldn't a permanent one call for investment into technology development and research?  

There's never a permanent fix on a nonrenewable resource.