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Is this legislation counter to why we created a strategic petroleum reserve?

http://news.yahoo.com/s/nm/20080424/pl_nm/usa_cong...

1/10th of 1% goes to the SPR. This is symbolic feel good legislation that accomplishes nothing.

Do we need the Strategic Petroleum Reserve? Does it safeguard or help the American people at all?

Update:

"the United States uses about 21 million bpd." 70 million barrels won't last long....

I do remember the Clinton administration used the SPR to flood the market. If I remember right it really did nothing except line Al Gore's pockets.

If it is used for market manipulation, it's really not there for the Military, or the US in time of crisis.

We need to start drilling and exploration for oil again. I wonder how many oil wells we have capped in this country because of the envirowacko's.

Or maybe it's a good practice. Save for the future....

Update 2:

Forgot a zero there, 700 million

5 Answers

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  • 1 decade ago
    Favorite Answer

    Yes, The SPR is kept not for regulation of gas supply or fuel prices but as a strategic(ie. Military) reserve in case of war time interuption of fuel supply. If a large scale war were to break out and the supply of oil interupted then the SPR would be available to supply CRITICAL needs. Whether or not there is enough in the supply is a constant debate. On any given day the SPR does not "help" the American people. I have disability insurance and it does not "help" me at all. It is a cost I accept to insure the future in case of catostrophic injury.

    If oil imports were to be cut off we would see a VERY dire situation in just a few days time. The SPR is 700mil bls while we import 10 mil bls per day. Used for only critical needs that could last a couple months. It might be enough to save our butts. It might not.

  • Phil M
    Lv 7
    1 decade ago

    Yes, it is a strategic reserve....but it only has 55-65 days of oil on supply at our current consumption rate......I say only because in the event of a true crisis, 2 months isn't that long. What it also helps, and Clinton did this, is when you release some of the reserves......this over supplies the market and prices go down a bit, its a game. The oil exporters know we need it and if we are not willing to supply more of our own, they solely control the price. If we release a few million pounds of oil strategically throughout the year, prices will come down. We consume as much or more than any other nation, if we aren't paying the highest prices their oil devalues in the open market. Its worked before.

    The legislation is one of fiscal/resource responsibility. With gas prices continually increasing, the economy suffering, etc. its fiscally/economically responsible for our government open up the supply as much as possible....

    5-24 cents per gallon (how in the hell is it that much a discrepancy) for every tank of gas you use.....it does add up to quite a bit.

  • 1 decade ago

    Of course we need the Strategic Petroleum Reserve. In case of war/depression/global chaos.

  • 1 decade ago

    There is a double side to this.

    One is it is necessary for national security.

    The other, is to continue to take oil off the market to create low supplies to promote gouging of the prices at the pump.

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  • 1 decade ago

    Yes you need it, so doing the time of war (middle east ring a bell) if they cut off the supply (and why would they dupply their enemy) we have a reserve to defend ourselves with!

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