White House to Tap Strategic Petroleum Reserve

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Describing the president as deeply concerned about the impact on global economic growth of oil supply disruptions in the Middle East and North Africa, the Obama administration announced it would release 30 million barrels of oil from the Strategic Petroleum Reserve over the next 30 days. This effort is part of a broader response by the International Energy Agency; the U.S. contribution represents half of the total planned injection of supply.

Since the violence in Libya began a few months ago, 140 million barrels have been lost, according to a senior administration official, "resulting in greater tightness." Little additional supply has entered the market during the same period, the official continued, particularly of the light sweet crude that Libya exports. The country is unusually rich in this high-quality variety of oil, a fact that has long engendered strong interest in Libya among Western oil companies: ConocoPhillips (COP) CEO Jim Mulva, for instance, displayed in his Houston office a photograph of himself alongside Muammar Gaddafi. The majority of the oil released from the SPR will be light sweet crude.

In a conference call with reporters, administration officials would not speculate about the impact this release might have on gasoline prices, insisting instead that the intention was to forestall any adverse effect on economic growth at home and abroad. With respect to the gasoline pump, one said that prices will be what they will be.

The president has been hinting for months that the U.S. might tap its emergency reserves, and there were questions from reporters about the timing of this announcement. Why now, for instance, and not four weeks ago, when gasoline prices were 20 cents a gallon higher? The officials would say only that this plan has been in the works for some time, and that the administration was acting in anticipation of higher demand over the summer, when refineries come back online. They also stressed that the U.S. is working in full consultation with the major oil producing countries, in particular the members of the Gulf Cooperation Council (which pointedly excludes Iran), and that the IEA effort was intended to complement a commitment by Saudi Arabia to produce an additional 1.5 million barrels per day for the remainder of the year to meet market needs. They would not say, however, whether Saudi Arabia had been informed beforehand of the U.S. decision.





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richperry05

this is such a crock of buullsshitt. we need to stat drilling in alaska and the dakota mountains now. there is enough oil here in the u.s for us to survive for the next 50 years without any oil for afar... lets get serious america and start telling the government what we want and know what is best for us. the coming of the american people is on its way, stop with the b.s.

June 28 2011 at 11:36 AM Report abuse rate up rate down Reply
tbbikerdad

SSTTOOPP , DO NOT BUY INTO THIS , OUR PRICE OF GAS AT THE PUMP , HAS NOTHING TO DO WITH ANY OF THIS . do not beleive everything you read ...... AMERICAN PRICE OF GAS AT THE PUMP , IS PURELY POLITICAL . ....O P E C DOES NOT SET THE PRICE AT THE PUMP . .....IT IS MOSTLY TAXES .....NOTHING ELSE . ...NOT WALL STREET , NOT SPECULATORS , NOT LIBYA , NOT PRODUCTION COST , NOT WEATHER ....... NONE OF THAT ......AMERICAN COMMERCE DEPARTMENT SETS THE PRICE AT THE PUMP . IT IS MOSTLY TAXES ....... NOTHING ELSE . BARREL OF OIL USED TO MEASURE 5 5 GALLON , TODAY IT IS 4 2 . COMMERCE KEPT THE 5 5 gallon price . WHY DO YOU FIGURE THIS IS NOT HEADLINE TOP NEWS . .... My name is T i m

June 27 2011 at 9:01 AM Report abuse +1 rate up rate down Reply
Samir semaan

While the government role is to provide security to the public it is necessary to think about the economy as national security issue and gas prices here and around the world must come down to the level was before at 2 dollars for a gallon so people will have extra money to spend. The government must keep tight squeeze on spending and deal with medicare and medicaid and social security disability and the social welfare system to see who is eligible and the establishment of the office of anticorruption to reduce the spending in social programs and save at least 2 to 3 thrillions dollars and that saving and this will restore medicare and medicaid and other programs alive while the military must share the burden and reduce spending without affecting national security.

June 27 2011 at 12:20 AM Report abuse rate up rate down Reply
freekybig53

See how weird that is ,the Huff Post ran a story about this only they said he was sending the oil to another country but the story was only on here for two hours and then when I went back to post it was gone !!

June 26 2011 at 10:17 PM Report abuse rate up rate down Reply
savemycountry911

Want free gas? Eat beans

June 26 2011 at 7:14 PM Report abuse -1 rate up rate down Reply
dwight

Two Trillion Spent on Tarp, QE1 &2.. The devaluation of the dollar coupled with low interest rates have wipe out the savings and investment portfolios of millions of Americans. These are the one’s that worked and saved, paided their taxes and put their children thru college in an effort to give them a better life experience than they had..(The American Dream) What did they get for it? Their Children got indoctrinated in to socialism by the schools. They dumbed them down on the fundamental life skills, reading, writing, math and basic economics. The government has sponsored indoctrination of a whole generation of young people taught to feel guilty if they try to succeed and be successful..

The country itself is run by a bunch of narcissistic idiots both republican and democrats are to blame.. Their thirst for power and self enrichment has trumped any desire to serve the electorate..

There is a simple solution no one talks about. It requires basic math and common sense ..Get out your pencil and paper. If you are one of the lucky ones who got a quality education devoid of political indoctrination..

Using the principal of basic integrity and accountability let’s assume that instead of the government giving all these Trillions of Dollars to the same criminal felons that created this problem they simply did one thing..

They apologized to the American people..The Laborers, and the professionals for their failure to serve them.. THEN THEY CARRIED OUT THIS ACTION.. They refunded to each actively working tax paying American a portion of the 2 Trillion equivalent to their contribution ratio.. Consider the consequences of this action.. Those that originally caused this problem would be allowed and fail .. The criminals proscecuted.. Those millions of intelligent people out there who trusted the system would get to choose how to reinvest that money. Jobs would be created. The housing market would be saved. Banks would have to compete honestly for deposits and pay interest rates that retired Americans depend on ..The unemployment rate would decrease to a level equal to the percentage of illegal aliens in this country.. Just IMAGINE!! Letting the individual working tax paying American solve the problem.. Then of couse then why would be need government if they made common sense decisions like that???

Just remember if you are already indoctrinated this solution is already beyond your grasp to understand .. You have already been assimilated into the collective.. You cannot exercise free will and depend on other to make decisions for you… To Those Readers you have my SYMPATHY..

June 26 2011 at 1:14 PM Report abuse rate up rate down Reply
savemycountry911

I guess the welfare bums think they'll finally get that free gas they were promised. LOL

June 25 2011 at 9:56 PM Report abuse +2 rate up rate down Reply
1 reply to savemycountry911's comment
tbbikerdad

The welfare people , CORPORATE AMERICA , and GOVERNMENT company vehicles .....DO NOT CARE WHAT THE GAS PRICE IS ,........ALL THEIR BILLS ARE PAID WITH TAX DEDUCTIONS ......... PRICE OF GAS AT THE PUMP HAS NOTHING TO DO WITH ANYTHING EXCEPT AMERICAN COMMERCE DEPARTMENT ....O P E C DOES NOT SET THE BARREL PRICE AMERICA PAYS .......... AMERICAN COMMERCE DOES THAT ....IT IS MOSTLY TAXES .....NOTHING ELSE ...... My name is T i m

June 27 2011 at 9:08 AM Report abuse rate up rate down Reply
GUS

SPR was meant for national emergency use ONLY. NOT to scare the speculators into selling. They have shorted their oill buys anyway... this was merely a political move on Pres Obama's part. Anyone who thinks differently has NO clue how commodities markets work from the speculators POV. For grins and giggles, lets PRETEND this release from the SPR did ahve an effect on the price of oil and gas... 60 million gals of oil is equal to about 16 days supply of oil on the world 'use' market.....right after 4th of July, the price of gas will begin to creep back to where it was in May.

June 25 2011 at 9:27 PM Report abuse -1 rate up rate down Reply
bigtextlr

All I see on this board is speculation. Until this oil is out and the results in no one knows for sure what will occur BUT I would rather have Obama do something than nothing. Laws need to be past to stablize oil prices if we are going to ever see a sign of recovery because our nation is and has been on an oil economy for about a century at least. One thing is sure is we need to get off dependency of oil but it will take many years. Meantime, while we are being robbed daily at the pump, our only hope lies in our government and we saw in 2008 what happens when the government does nothing until the bubble breaks once again. Can we withstand another hit? Right now I'm not sure we have withstood this last one.

June 24 2011 at 4:41 PM Report abuse +4 rate up rate down Reply
1 reply to bigtextlr's comment
bggdg

Laws don't stabalize prices. Price is the market's mechanism for maintaining equilibrium between supply and demand. What we saw in 2008 is what happens when government social engineering creates bubbles.

June 25 2011 at 7:56 AM Report abuse -3 rate up rate down Reply
maineman12345

We need to repeal the Commodity Futures Modernization Act of 2000 and The Financial Services Modernization Act of 1999 and get speculators out of the oil market!
Three years ago most investment banks were on the brink of extinction. Lehman Bros, Bear Stearns and 427 other banks went belly up. Banks that did survive received bailout and Tarp money from the federal government. The banks took our taxpayer money and invested in commodities and in the currency market. By January the oil market had hit bottom; oil was selling for $34 a barrel. So the banks and hedge funds invested in oil, betting that it would go up. After all, they had been previously successful in driving up the price to $140 dollars a barrel. They began hoarding oil, storing it in tank farms and on supertankers.
Then the bankers hired an army of oil traders to bid the price of oil up. Even though world consumption was down, they were successful at pumping oil up again with the resurrection of the big lie of "peak oil" and a few geopolitical crises'. Oil is now selling at over 100 dollars a barrel.
Drilling will do nothing to the price of oil. Opening the reserves will do nothing to the price of oil. The present price of oil has nothing to do with supply and demand (there is a glut of oil and no place to store it.) Instead of the price of oil being determined by supply and demand, the oil and currency traders now control the price of oil. These American and international bankers didn't believe that the Obama administration would be successful combating the crisis that these very banks created. As the deficit grew and the treasury printed more money to bail out the banks, their traders and analysts declared the Obama administration dead on arrival when it came to the economy. They bet that the US dollar would lose its value. The US dollar has lost between 25-30% in the last four years. They bid it down and they made lots! Their cynical efforts to make a buck impoverished all of us by devaluing our currency. When your currency becomes devalued, the cost of everything goes up, especially oil and other commodities.
The banks scored twice; first by betting that oil would go up, then shorting the greenback, insuring that oil would go up. Don't forget, we loaned the banks the money to do this, and for years those banks have made record profits.
Two years ago there was still a lot of idle money around that was frightened of the stock market, and the insolvency of banks. That money was put into the commodity markets and fueled the rise of the price of commodities world wide. It's been a good couple of years for Goldman Sachs, J P Morgan, and their commodity and currency trading subsidiaries. A bright guy who ran an oil trading subsidiary for Citi Bank made 100 million as compensation. Their hoarding practices have started to be emulated by other countries; we now see China, The US, and others building vast oil storage facilities to take advantage of climbing oil prices. OPEC, big oil and the bank's speculative efforts have and will cost American consumers billions.
Then there is the continued greed of oil producers. With the price so high, think of the money to be made! Problem is, there is no place to store it anymore and everyone continues to pump it out of the ground. And world consumption continues to be low.
Those of us who heat our homes, drive our cars, and use oil products in a myriad of ways, are paying way more than we should. And we have been for some time. Bernie Madoff ripped off his clients to the tune of 50 billion dollars, a monumental theft. So what do you call this oil market that has taken 50 times that amount? We have paid $2.5 trillion dollars more than we should! The irony of all of this is that we the taxpayers provided the seed money for this, the greatest rip off in history.
All of this hoarding and manipulation needs to end. Repeal the Commodity Futures Modernization Act of 2000 and The Financial Services Modernization Act of 1999.

June 24 2011 at 4:29 PM Report abuse +5 rate up rate down Reply
1 reply to maineman12345's comment
bggdg

The banks didn't take taxpayer money. Government took taxpayer money. Banks are powerless to "take", but government is not.

June 25 2011 at 8:00 AM Report abuse -4 rate up rate down Reply
2 replies to bggdg's comment
phil

Banks constantly borrow from the Fed reserve at what the overnight rate is and right now it's practically paying them to borrow BUT you had better not use a credit card and depend on it for borrowing. You will pay anywhere from 12% to 24%. I just love to use my credit card and run up a big sum only to pay it off before the penalty period and hope they think I won't. I once had it up to 12 grand and like every month paid it. The word must have got out because in come piles of junk mail from other crooked lenders telling me I'm already approved for thousands of dollars. They were lucky though because I felt too healthy because it would really be a life time desire to pay for my funeral with a credit card and an empty bank account. Would I be evicted from my grave? WHO CARES?

June 25 2011 at 12:14 PM Report abuse +1 rate up rate down
ranger964x4

We are the government or have you forgot but only as long as we vote and hopefully people will never vote for a president again as dumb and crooked as Bush.

June 26 2011 at 3:52 PM Report abuse +2 rate up rate down