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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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Bush rhetoric on energy strays from the facts
Public Policy; Political and Legal Newsvox_mundi writes:

WASHINGTON - President Bush put politics ahead of the facts Tuesday as he sought to blame Congress for high energy prices, saying foreign suppliers are pumping just about all the oil they can and accusing lawmakers of blocking new refineries.

Bush renewed his call for drilling in an Arctic wildlife refuge, but his own Energy Department says that would have little impact on gasoline prices.


THE SPIN:

Asked what he is doing to try to get Saudi Arabia to pump more oil, Bush didn't answer directly. "We've got to understand there's not a lot of excess capacity in the world right now," he said. Blaming "the lack of refinery capacity" for high energy prices, he said Congress has rejected his proposal to use shuttered military bases for refinery sites.

FACT:

Global oil supplies are tight, in part because OPEC nations including Saudi Arabia are refusing to open their spigots. But Saudi Arabia has considerable additional production capacity. It's pumping a little over 8.5 million barrels a day, compared to about 9.5 million barrels a day two years ago and has acknowledged the ability to produce as much as 11 million barrels a day.

AP

Posted on Wednesday, April 30 @ 13:00:58 PDT by Leanan
 
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ARE We Out of Gas Yet?

 
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