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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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Iraqi Oil Output Shows Industry Close to Full Recovery
Production; Extraction; ExplorationIraqi oilmen and U.S. occupation officials peg Iraqi oil production in recent days at 2.5 million to 2.7 million barrels a day, roughly the same amount Iraq was capable of pumping before the U.S.-led invasion in March 2003.

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Posted on Tuesday, March 16 @ 06:31:30 PST by admin
 
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