I begin this writing by addressing the current issue of gasoline prices. No matter who is President the gas prices will rise and drop according to the market and the events that occur in the oil producing countries. We have many people who really should know better but either refuse to acknowledge the facts due to a political or personal agenda. The President can only make a decision to use the “Strategic Oil Reserves” in a time of extreme crisis or national emergency namely An all out attack on the Country or perhaps a world-wide war. It is unfortunate that many people feel that these reserves should be used to keep gasoline prices down under $4.00 per gallon but this would be a waste of this resource if we would ever need it later. The current President is pushing for alternative energy to maintain these reserves intact, if we use these reserves we will need to replace them at a higher cost so where is the advantage? We need to remember there are countries who if allowed would declare open warfare on the rest of the world with no regret and without a thought as to the consequence. These factions have pounded their own economies into the ground along with their people ( do the names: Hitler, Qadhafi or Hussein ring any bells?). I am including the website for the US government webpage :http://www.spr.doe.gov/default.htm, this website tells about the US strategic oil reserves.
The Strategic Petroleum Reserve (SPR) is an emergency fuel storage of oil maintained by the United States Department of Energy. It is the largest emergency supply in the world with the capacity to hold up to 727 million barrels (115,600,000 m3).The current inventory is displayed on the SPR’s website. As of February 29, 2012, the inventory was 695.9 million barrels (110,640,000 m3). This equates to 36 days of oil at current daily US consumption levels of 19.5 million barrels per day (3,100,000 m3/d).[1] At recent market prices ($102 a barrel as of February 2012 [2]) the SPR holds over $26.7 billion in sweet crude and approximately $37.7 billion in sour crude (assuming a $15/barrel discount for sulfur content). The total value of the crude in the SPR is approximately $64.5 billion USD. The price paid for the oil is $20.1 billion (an average of $28.42 per barrel).[3]Purchases of crude oil resumed in January 2009 using revenues available from the 2005 Hurricane Katrina emergency sale. The DOE purchased 10,700,000 barrels (1,700,000 m3) at a cost of $553 million.[4]The United States started the petroleum reserve in 1975 after oil supplies were cut off during the 1973-74 oil embargo, to mitigate future temporary supply disruptions. According to the World Factbook,[5] the United States imports a net 12 million barrels (1,900,000 m3) of oil a day (MMbd), so the SPR holds about a 58-day supply. However, the maximum total withdrawal capability from the SPR is only 4.4 million barrels (700,000 m3) per day, making it a 160 + day supply.
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