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Hoarding is exactly what the government is doing right now by filling the SPR, and frankly it's the best thing that could happen. It drives prices up. High prices encourage demand destruction. They also finance new well development. The hoarded oil gives us a buffer to fall back on once shortages become more prevalent. High prices are what we need in order to adapt to what's coming, and the sooner they happen, the better.

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Oil exports boom as attacks on pipelines cease
Production; Extraction; ExplorationCoalition forces, oil workers welcome unexpected lull in sabotage in north

BEIJI, Iraq - For more than two years the attacks came like clockwork. As soon as the military secured and workers repaired the pipelines from Iraq’s northern oil fields, just when the valves were about to open, insurgents would strike.

But roughly three weeks ago they suddenly stopped, letting crude oil flow freely from Iraq’s vast reserves near Kirkuk.


Perhaps insurgents feared reprisals in Salahuddin province, where pipelines from Kirkuk flow to the country’s largest refinery in Beiji. Maybe terror leader Abu Musab al-Zarqawi’s death disrupted a chain of command that ordered the attacks, military officials said.

Whatever the cause, the U.S. forces welcome the change, even if history since the U.S.-led invasion in 2003 has shown the free flow of oil in Iraq is only temporary at best.

AP

Posted on Friday, June 30 @ 07:36:20 PDT by leanan
 
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