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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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ANALYSIS - Bush drilling plan wouldn't have eased pump prices
Public Policy; Political and Legal News WASHINGTON, April 29 (Reuters) - The Bush administration says the United States would be less addicted to foreign oil and fuel prices would be lower if Congress had only opened up Alaska's Arctic National Wildlife Refuge to drilling.

But that claim doesn't reflect the long lead time to develop the refuge's huge oil reserves, which would not be available for several more years and initial volumes would still be small if Congress in 2002 had approved the administration's plan to drill in ANWR, energy experts say.


President George W. Bush during his first year in office made giving energy companies access to the estimated 10 billion barrels of crude in the refuge the centerpiece of his national energy policy that sprouted from Vice President Dick Cheney's controversial and secretive energy task force.

With gasoline prices soaring to records in recent weeks, Bush has stepped up his argument that ANWR oil is a solution.

"We should have been exploring for oil and gas in ANWR," he said last week when asked about record pump costs. "But, no, we made the decision and our Congress kept preventing us from opening up new areas to explore in environmentally friendly ways and now we're becoming, as a result, more and more dependent on foreign sources of oil."

Reuters

Posted on Wednesday, April 30 @ 23:03:52 PDT by Leanan
 
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