June 23, 2011

"'Release Baby Release' is the new 'Drill Baby Drill.'"

And candidate Obama told us in '08 it was going to be his "policy to use the strategic petroleum reserves as a market cushion."

58 comments:

Martin L. Shoemaker said...

In 1990, when oil prices rose, some people wanted to increase domestic drilling. One very popular counter-argument was: "That will take 10 years to develop. We need an answer NOW!"

In 2000, when oil prices rose, some people wanted to increase domestic drilling. One very popular counter-argument was: "That will take 10 years to develop. We need an answer NOW!"

In 2010, when oil prices rose, some people wanted to increase domestic drilling. One very popular counter-argument was: "That will take 10 years to develop. We need an answer NOW!"

In 2020...

edutcher said...

That reserve is for desperate national shortages, not political games, however...

Nothing is more important than Little Zero.

The peasants will just have to accept that.

Fred4Pres said...

So we are going to buy back this oil later at much higher prices? This is a short term blip.

Carol_Herman said...

It's getting to be sad watching the democraps trying to re-engage a majority of Americans.

Jimmy Carter redux?

You know they're just trying to find their footing, on Sarah Palin's strong suit, don't cha?

Martin L. Shoemaker said...

Fred4Pres said...

So we are going to buy back this oil later at much higher prices? This is a short term blip.

Yes. It's Cash for Clunkers redux.

chickenlittle said...

First: "Drill baby drill"

then comes: "Release Baby, release"

Then follows the inevitable refractory period when things are sent to the refinery.

Old Dad said...

The President thinks that a market cushion is like a seat cushion. No wonder since he's been getting his ass kicked consistently.

Hagar said...

These people do not know how things work, in or out of government. Thus all the flailing around.

traditionalguy said...

The Libyan oil fields are needlessly shut down which is working out well for Obama and Soros along with the Permitoreums and the EPA's regulations bombing the coal fired plants on the electrical grids. They are whittling us down to no oil, no coal, no dollars worth a damn, and no unforeclosed middle class homes. But Windmills will save us the country from collapse...right???

SunnyJ said...

Why now? There was no market shortage, loss from Libya was being picked up by Saudi's & others. Oil was down from high of $114 a br to around $90, price at pump slowly going down...but speculation continues to support the price.

The amount released is about 1-2 days needs and it resulted in dropping the spec market and pump price and it hasn't even been released.

Let's see: Troops home against military leaders (David Axelrod running deployment not David Patraeus), dumping the oil market, new mortgage loan relief released, picking fights against employers in support of unions...

It's all about recognizing the forces moving against Obama re-election.

The only thing transparent about this administration is it's baldface lies and political manipulations.

AllenS said...

Don't forget the solar panels, traditionalguy.

EDH said...

And candidate Obama told us in '08 it was going to be his "policy to use the strategic petroleum reserves as a market cushion."

You can tell Obama's polls have reached a new Big Bottom.

The bigger the cushion, the sweeter the pushin'
That's what I said
The looser the waistband, the deeper the quicksand
Or so I have read...

Curious George said...

Obama has said that increased production would have no effect on oil prices. But releasing a part of our strategic reserves will. Can anyone explain that?

This guy is a fucking train wreck. All aboard!

NYTNewYorker said...

Symbolism over substance.

It's what the left is.

Hoosier Daddy said...

"...Jimmy Carter redux?.."

Best case scenario at this point.

Chip S. said...

@CuriousGeorge, Because he's an idiot?

Any drawdown of the SPR is likely to be offset by corresponding buildups of private oil reserves, so in fact it's not even likely to have much of an effect in the short term.

wv diecin It's like an entire death panel in a single vitamin!

Old Dad said...

Curious said:

"Obama has said that increased production would have no effect on oil prices. But releasing a part of our strategic reserves will. Can anyone explain that?"

Sure. The guy is economically illiterate and a political whore--bad combination, that.

Dust Bunny Queen said...

Everything Obama and the Democrats do seems to be knee jerk after the fact reactions.

Now he releases from the strategic reserves??? Now. When oil prices are falling and demand is down due to a tanking ecoomy.

Instead of increasing production and utilizing the 'reserves' we have in the ground....moves that would increase jobs and revenue for the country, he decides to spew a small amount of reserves compared to the daily use of oil.

It is all a political knee jerk move.

These morons don't have the first clue on what to do and are just flailing around making everything worse and worse with each bone headed decision that they make.

Clueless wonders.

garage mahal said...

Demoestic oil production is at an all time high.

DOOM DOOM DOOM!

I thought you guys would much happier. Republicans were swept in nationwide, particularly at the governorship level. Unions are being dismantled, womens health clinics being shuttered, huge Medicaid cuts at the state level, large corporate tax cuts, the disabled elderly and poor will be feeling some much needed PAIN soon, industries are writing our enviromental regs allowing friendly chemicals like phosporous into lakes and streams, public education money is being siphoned into unaccountable private voucher schools, etc etc etc.

Cheer up!

Old Dad said...

"Demoestic oil production is at an all time high."

Garage, you're such a fucking idiot.

Let's say you had a job, say in sales. Your boss fires you for missing your quota every month since you hired on. You whine, "but boss, I set my personal sales record last month."

Your boss responds appropriately, "call security."

Chip S. said...

Demoestic oil production is at an all time high.

As of a couple of weeks ago, so were oil prices. What's your point?

I also got a kick out of this: unaccountable private voucher schools

Unaccountable to everyone except students and their parents--which is pretty much the point of vouchers, isn't it?

virgil xenophon said...

Not to mention the little minor fact that the "strategic" reserve is named "strategic" only because THE WHOLE CONCEPT BEHIND IT--HENCE ITS NAME-is for WARTIME EMERGENCY USE in case our oil supply-lines are cut-off. Nothing like playing with the nations security for cheap temp political advantage. God, I loath that man with EVERY fiber of my being..

Cedarford said...

edutcher said...
That reserve is for desperate national shortages, not political games, however...

=================
Disagree. There has been talk about using this reserve to help tame the conspiratorial behavior of the oil speculators. That coordinate between NYC, Chicago, London, Dubai, Zurich, Tel Aviv, Tokyo, etc. to control price increases or drops independent of market forces - then carve up the money they force consumers to pay as levy. They - as speculators - are outside RICO and antitrust law. Unfortunately.
It is not just oil, they make great money in other commodity manipulations...but oil is by far the biggest field of play for their machinations.

If the oil release screws the speculators and their latest conspiracy, I'm all for it. We need to drill, of course..but the more we can get markets to price on pure supply/demand basis and eliminate machinations outside that - the better.

The Drill SGT said...

Energy Kabuki,

ultimately counterproductive theater at that

Drew said...

[Tinfoil Hat On]

If we draw down our strategic oil reserves now, when it's not needed, then when the time comes that we do need it, it's not there.

Perhaps that's the goal?

[/Tinfoil Hat Off]

Chip S. said...

There has been talk about using this reserve to help tame the conspiratorial behavior of the oil speculators. That coordinate between NYC, Chicago, London, Dubai, Zurich, Tel Aviv, Tokyo, etc. to control price increases or drops independent of market forces - then carve up the money they force consumers to pay as levy.

"There has been talk"? And this talk "draws attention" to speculators? Interesting.

More to the point: Why do you think these shadowy speculators aren't able to manipulate the US government as easily as they can manipulate the world oil market?

Michael said...

Cedarford: if its not the jews its the speculators,eh? Jeez. do you have any idea how stupid that rant sounds?

Cedarford said...

Virgil - "THE WHOLE CONCEPT BEHIND IT--HENCE ITS NAME-is for WARTIME EMERGENCY USE in case our oil supply-lines are cut-off."

No, that is one reason - to have enough to allow Our Heroes to prevail in a war when supplies are disrupted. But a strategic reserve is also there because America well being is more than "national security against those contemplating using military weapons on us"..It is also about avoiding a 2nd major recession or start of a Depression over enemy or self-interested speculator conspiracies employing economic weapons against us.

Of course Obama and his drilling bans to succor his Green Nazi zealots was massively stupid. But in the here and now if we can screw the speculators and knock oil down to 3.30 to 3.50 a gallon and seriously mess up the speculators and banks backing them from future games - I'm for it. Because it helps America's future and oureconomic recovery.

nevadabob said...

Why'd he wait this long? Obama destroyed the economy by waiting this long.

And soon, he'll quit releasing as soon as corrupt Democrats have a chance to get on the right side of the futures market.

This is a Democrat Party fundraiser. Many Washington Democrat got a heads up on this and are actively trading in the oil futures market on insider information.

It's complete and total corruption on an epic scale.

Drew said...

Domestic oil production is not at an all-time high. This is an Obama lie. Production is up where actual drilling is taking place, but there is now far less drilling taking place. For example, prior to the Deepwater Horizon explosion, there were 55 rigs in the Gulf. Since Obama began to shut down drilling in the Gulf, we are now down to less than half that.

Cedarford said...

Michael said...
Cedarford: if its not the jews its the speculators,eh? Jeez. do you have any idea how stupid that rant sounds?

==================
Do you in turn know how stupid it is to claim that speculators are not in the commodities market in force - and manipulating prices on several critical commodities?

Do you in turn claim that there is no coordination between speculators and the banks backing them?

There is a distiction between market makers and the "big guys" moving in to drive prices to make money through temporary manipulation. And spare me the argument that in a Free Country of Freedom Lovers - speculator cabals and banks ought to be FREE!!! to rape consumers at will. And anyone who objects to 4.00 gasoline in a glut of supply "hates freedom and liberty".

virgil xenophon said...

Cedarford/

That secondary reason may have at one time been valid, but it is virtually worthless today when oil is traded as a commodity on the spot mkt. The ONLY thing that will tamp down upward price pressures via speculation on the futures mkt is drilling by the US. The prospect of more oil coming online in the future affects futures prices (and hence oil on the spot mkt) today as no one wants to be long on the upside if the prospects are for future increases in supply.

edutcher said...

Drew said...

[Tinfoil Hat On]

If we draw down our strategic oil reserves now, when it's not needed, then when the time comes that we do need it, it's not there.

Perhaps that's the goal?


Never forget that, in the first few months of this (and I use the term loosely) Administration, the question, "Is he TRYING to destroy this country?", was often asked.

Cedarford said...

edutcher said...
That reserve is for desperate national shortages, not political games, however...


=================
Disagree. There has been talk about using this reserve to help tame the conspiratorial behavior of the oil speculators.


By whom?

Slobbering Barney?

O'Really?

It's there for national emergency. That's why it's called Strategic.

Don't Tread 2012 said...

I read a report that said 30M barrels is about a 1.5 day supply of oil.

Ho hum.

Maguro said...

The notion that a group of shadowy speculators is driving up the world price of crude oil is barking mad, tinfoil hat type stuff. There's simply not enough speculative juice in the world to do that, the market's too big and oil is damn near impossible to store in the quantity required to drive the worldwide price up.

The Saudi government is the one entity that has the power to move the price of crude significantly. There is no one else.

Don't Tread 2012 said...

@garage

"Demoestic oil production is at an all time high.

DOOM DOOM DOOM!

I thought you guys would much happier. Republicans were swept in nationwide, particularly at the governorship level. Unions are being dismantled, womens health clinics being shuttered, huge Medicaid cuts at the state level, large corporate tax cuts, the disabled elderly and poor will be feeling some much needed PAIN soon, industries are writing our enviromental regs allowing friendly chemicals like phosporous into lakes and streams, public education money is being siphoned into unaccountable private voucher schools, etc etc etc.

Cheer up!"

OMG, doubling down on strawman production today garage? Geez Louise...I hope the farmer that you are pilfering straw from has enough reserves to keep you going...

Browndog said...

If an American hating foreign regime really wanted to stick it to America, restricting supply just after the U.S. released strategic reserves would certainly do it.

Good thing there are no America hating foreign regimes, and if there were, they wouldn't dare challenge the hard-nosed no nonsense Leader of Men currently in the White House.

AllenS said...

So, what do you think there, Cedarford, should we get rid of the stock market? Should we get rid of banks that give out loans, and make a profit? Should we stop business and others from providing a service and then make a profit? How about corn, wheat, pork bellies, cattle futures?

Coketown said...

Wouldn't Obama need to understand how markets function before attempting to manipulate them? If his foray into oil markets is as wildly successful as his other market ventures, we can expect $13 per gallon gas by September.

Curious George said...

GM: "public education money is being siphoned into unaccountable private voucher schools"

There is no suck thing as "public education money."

Mike said...

@Cedarford

Speculation cannot and does not set market pricing. It can only act as a hedge for the one buying (i.e. to smooth purchase price by spreading the risk and the costs over time). Yes BUYING. Take off your Think Progress decoder ring and look up what oil futures really are. For a hint, know that for every buyer there is a seller.

Garage is the funniest satire I've seen today. What? He's serious? So he knows that those "women's health clinics" are abortion mills? Well, then that's not funny at all. Why can't they see a real doctor for "care" I wonder?

Michael said...

Cedarford: "Do you in turn claim that there is no coordination between speculators and the banks backing them"

I do so claim. You know absolutely nothing about the workings of a bank that has a trading platform. You appear to think that dark forces can collaborate on the instant of a trade to create a scheme to fuck you. You do know, do you not, that there is a person on the other side of every trade, often a person in a competing bank. What dark forces are denied the buyer or the seller depending on your ignorance of the moment.

garage mahal said...

Since Obama began to shut down drilling in the Gulf, we are now down to less than half that.

Over 200 new, revised, sidetrack, and bypass oil related drilling permits have been approved since the Oct moratorium.

Source.

U.S. oil production is indeed up.

Source

Mike said...

And the high price of bacon is all those damn pork speculators!

Joe said...

(The Crypto Jew)

So, what do you think there, Cedarford, should we get rid of the stock market? Should we get rid of banks that give out loans, and make a profit? Should we stop business and others from providing a service and then make a profit? How about corn, wheat, pork bellies, cattle futures?


No Allen, just the Juice that run them; haven’t you figured that out by now…the Joos are screw’n ya man….

virgil xenophon said...

Yes, Joe, always those damned Joos. If only we could figure out a way to rid ourselves of them....wait...someone already tried
that!...oh well, if at first you don't succeed...maybe the Family Planning people can help..

Joe said...

(The Crypto Jew)

oh well, if at first you don't succeed...maybe the Family Planning people can help..



Family Planning, no more like the Ikhwan Muslimeen , of course in America the greatest threats to Juice are secularism and assimilation….all those nice Joo-ish boys and girls who marry non-Jews and then don’t rear nice, guilt-ridden, Joo-ish children….

Cedarford said...

Michael - You assume that for every speculator looking to jack up prices within a hedge and bank environment, unchecked by antitrust law in international behind closed doors "agreements" - there is a competing cabal that forms on disagreement of jacking up prices on artificial constraints on supply, and seeks to short the runup. And that the risk is equal in either approach.

Too often, the risk is not equal. Especially when the governments of commodity producers and their own cabals (see OPEC) work with the speculator cabals to jack the prices while demanding that others, especially governments "keep their hands off the Free Market".

Sometimes when governments do act, they serve to destroy the finances of some cabals. When Putin and Medevev announced that Russia and the Ukraine (working with them)would limit grain exports because of the drought and ST Pete, Moscow, and foreign speculators running up prices...they dropped grain and bread prices within 2 weeks, by 40%.
Of course this led to price increases elsewhere, like bread riots in Egypt...but what did the average Russian or Ukranian care?

As a lead bank trader said today on Drudge:

""The people who will be critics of this will say it's just a drop in the bucket. Well this is a drop that reminds investment banks, hedge funds, commodities pools and other overzealous investors that regulators or governments can basically create downside risk," Kloza said. ".. I think notice has been served to people who think there's no risk to owning speculative positions in crude and also to OPEC. This is clearly a manifestation of the disappointment in OPEC."

mpw said...

So Obama gets to blame something else on Bush, a full strategic national oil reserve. I hope he sends a public thank you for that little gift. mpw

Pogo said...

"Release Baby Release' is the new 'Drill Baby Drill.'"

Is this about Al Gore and his chakras again?

Original Mike said...

Is there no mistake that this President won't make?

hawkeyedjb said...

"I thought you guys would much happier. Republicans were swept in nationwide, particularly at the governorship level. Unions are being dismantled, womens health clinics being shuttered, huge Medicaid cuts at the state level, large corporate tax cuts, the disabled elderly and poor will be feeling some much needed PAIN soon, industries are writing our enviromental regs allowing friendly chemicals like phosporous into lakes and streams, public education money is being siphoned into unaccountable private voucher schools..."

Yeah, but there have also been some bad things that have happened.

dbp said...
This comment has been removed by the author.
dbp said...

As this chart from the EIA shows, the peak in production was around 1970.

Why do I even bother to check GM's "facts"?

virgil xenophon said...

LOL, you're so right, Joe. I had an ex-NYC Jew living in rural southern Ky (go figure) tell me just that back in the late 70s. The number of Jews is astonishingly small (either in actual numbers or as a per-cent of the pop) when one looks closely..

PatCA said...

I guess the new, green windmill for atop our cars is not quite ready yet.

Thank goodness we have mandatory elections.

Michael said...

Cedarford: "You assume that for every speculator looking to jack up prices within a hedge and bank environment, unchecked by antitrust law in international behind closed doors "agreements" - there is a competing cabal that forms on disagreement of jacking up prices on artificial constraints on supply, and seeks to short the runup. And that the risk is equal in either approach."

You do not understand that for every buyer there is a seller, for every trade there is a counterparty. You don't get that part of the conspiracy do you?

Drew said...

Over 200 new, revised, sidetrack, and bypass oil related drilling permits have been approved since the Oct moratorium.

I guess you can't tell the difference between a permit and an actual drilling rig.

Before the Deepwater Horizon explosion: 55 drilling rigs in the gulf.

March 2011: 25.

What part of this is too hard for you?