The Senate today approved legislation to temporarily suspend deliveries to the nation's Strategic Petroleum Reserve, by a vote of 97-1. The measure was inserted as an amendment to a flood insurance bill, and was opposed only by Sen. Wayne Allard (R-Colo.).
The Energy Department sends 70,000 barrels of oil to the reserve every day, a practice that this legislation would put on hold until the end of 2008 or until oil drops below $75 a barrel, whichever comes first. It's estimated that the measure could reduce gas prices anywhere between 5 to 24 cents a gallon.
The House is expected to approve the measure as stand-alone legislation today as well. [UPDATE: Yep, the House passed it.]
According to a statement from Speaker Nancy Pelosi's office today, "Democrats and Republicans agree that the American people would benefit from suspending these government acquisitions and purchases." It's one of the few things they agree on in terms of energy policy these days.
President Bush opposes a pause on filling the reserve, but it's unclear whether he'd veto it, as it has wide support on both sides of the aisle.
Meanwhile, Grist would like to remind you that cheaper oil shouldn't be an excuse to use more of it.
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Comments
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JeffB Posted 10:22 am
13 May 2008
Maybe he's smarter than he let's on........
When George W is against the politically expedient action AND when he bucks the entire Republican Party (including the Evangalicals, the Neo-Cons, the Libertarians, etc.), one has to believe that he just might know something that the rest of us don't. It really goes against every action that he has demonstrated over the past 7 years. Something to think about.....
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Colburn Posted 11:13 am
13 May 2008
$75 a gallon?
"...until the end of 2008 or until oil drops below $75 a gallon, whichever comes first."
I knew the price of oil had gone up. I didn't know it had gone up THAT much! I assume that should be $75 a barrel.
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Sam Wells Posted 12:25 pm
13 May 2008
Richton Salt Dome
Well it's about time to stop the madness - and the DOE & President's plan for the Richton Salt Dome. That's right, another huge Strategic Petroleum Reserve. First they hollow out the salt dome with water and pump the brine slurry all over the place, killing everything in its path. I hope that project goes FUBAR and is stopped.
Oh, and the little comment at the end about how "Grist would like to remind you that cheaper oil shouldn't be an excuse to use more of it" was hysterical. Stopping a little filling of the salt domes with imported crude oil won't do squat for the price and you should know better than that ...
sammie
Onward through the fog
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bigTom Posted 12:47 pm
13 May 2008
Effect should be minimal.
70KBpd is peanuts for the global oil market. The impact on price is likely to be very small. But perhaps we shouldn't be buying/storing oil when it is $125 a barrel. In any case, I am glad we are not longer filling up the reserve. The bigger the reserve, the less restrained adventurism (such a bombing Iran) will be. Come to think of it, lets pump out the whole reserve as quickly as possible. Then maybe the temptation can be contained.
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Tasermons Partner Posted 1:23 pm
13 May 2008
At 97 to 1...
...it's actually veto-proof.
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hapa Posted 2:38 pm
13 May 2008
i'd veto it
because it's not a plan.
economy's wrecked, climate's melting, oil's scarce, green's the way out.
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Tasermons Partner Posted 6:01 pm
13 May 2008
Yeah, I know...
...the one time when we actually don't want a veto is the one time they have enough votes to pull it off...
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Tasermons Partner Posted 6:18 pm
13 May 2008
*Waayyy over $75, whre have ya been?*
I knew the price of oil had gone up. I didn't know it had gone up THAT much! I assume that should be $75 a barrel.
It's currently tradin' at above 125 dollars a barrel, if that's any indication for ya.
If gets above 130 dollars, then we should start seein' averages above 4 dollars a gallon.
If it reaches 200 dollars (as is expected to within 2 years) a barrel, then we get close to the 6 dollars per gallon range.
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amazingdrx Posted 1:35 am
14 May 2008
Wrong reasons, right policy
Lower gas prices, well it's the wrong reason to stop filling reserves. Refining and speculation are more powerful bottlenecks than crude oil supply in retail gas pricing.
And of course this is too small an amount of demand to actually lower oil prices. Congress is pandering before election time.
But it is the right policy to let reserves stand as they are. Reduction of consumption should be the main thrust of government policy now. Government purchasing contracts for mass produced plugin hybrids could actually get that process going. And subsidies to consumers for using electric plugin "fuel" in their cars.
Geo heat exchange heating/cooling to replace fuel oil heating is another big oil reduction measure. Subsidize it now!
Another huge oil saving area would be to power tractors, trucks, and trains with biogas/natural gas. It would save a lot of farming and trucking supported familes from bankruptcy too. The natural gas saved by a move to geo heat exchange heating would come in handy as an oil replacement.
Tractors, trucks, and trains have the extra space and weight capacity to carry methane tanks.
Congress needs to stop talking to lobbyists and ead blogs like this.
http://amazngdrx.blogharbor.com/blog
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socialscientist Posted 2:49 am
14 May 2008
What Bush knows...
Bush knows that things are going to get a lot worse before they get better. His carbon-auto industry bosses have had him bombing and torturing the people of IRAQ for five years and they still will not sign over their oil. Meanwhile more oil is being nationalized elsewhere.
.
We need to stop the carbon-auto subsidy and the tariff that hobbles our public transportation investment.
.
http://frepubtra.blogspot.com
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