MRJ said:
Econ, isn't the oil reserve the governments reserve of oil for emergency use, rather than the oil companies stockpile? That is the way I've read it. How about others?
Have you funded a cattle drive lately, Econ?
We do them each spring and fall. Not the "tourist" kind (thinking about it, for the right price we may consider taking a few tourists along), but to move our cattle from one area to another, from a just a few miles to 20 and 40+ miles. It doesn't come cheap....but is easier on cattle and maybe no more costly than transport by truck. We don't travel fancy....just old canvas tents, old team and chuckwagon with ordinary food cooked for supper and breakfast for the long drive, and some good local cowboys on horseback working loooonnng hours for the shorter ones.
It has been quite well established that it is the traders on the world wide stock exchanges who set the oil prices, not the oil companies. Who are the investors in oil companies, anyway. From what I've seen lately, there are lots of retirement pension plans, insurance funds, individuals' retirement accounts and other ordinary middle income people invested in them. High oil prices hurt me as much as anyone else living 30 miles from nearest doc, county seat, good grocer, and 120 miles from my city for major business, medical help, and shopping for everything from parts for ranch equipment to a new shirt or sox. Environmental extremists and NIMBY's like John Kerry and Ted Kennedy and those in CA who won't allow windfarms and other means of non-oil power, including coal extraction, or off-shore oil drilling and new refineries built. There are way too many government mandated hindrances to improved power and improved mileage on cars. This has got to end. Pres. Bush needs more, not less support in new, cleaner energy source development. We, the people need also to practice the common sense things we can do to cut our energy use. Katrina's family use of bio-diesel is going to have lots more company. Good luck on that, K. How many of you in SD read the story in the 'Green Sheet' by the guy who has tinkered with his pickup and fuels it with far higher % ethanol than is commonly used in vehicles not designed as flex-fuel frienly? Sounds intriguing. More serious efforts along those lines may be the silver lining in this high priced oil cloud.
MRJ
Yes, MRJ, it is a STRATEGIC petroleum reserve. Bush is doing a double face on allowing election year politics to affect it. I agreed with his assessment of it when running for president, and I don't agree with his 180 degree turn during HIS election year cycle (for Congress, that is). The news reports showed his campaign statement and then what is happening now. Pretty irrefutable. A clear case of say one thing and do another.
I don't think you can fault the oil companies totally for high energy problems of today. The Congress has dropped the ball on formulating an energy policy for the future. I had one Senator's staffer who was on the energy committee that they basically had the use it while you can policy. That does nothing for the long term energy needs of the nation. It is a short term policy that caters to detroit. We should have had higher fuel standards in the works a long time ago because it takes a long time for industries to tool up to these things. That is one of the reasons the Japanese got such a strong foothold on autos in the U.S.
I think they were saying we are spending 150 million on research on alternative energy (better enzymes for breaking down cellulose into ethanol). A pretty small drop in the bucket compared to recent oil patch profits (yes we still have those stocks and will benefit).
France uses nuclear power for 85% of their electrical needs. If we did that, we would have an oil glut. Ethanol takes anywhere from 80 to 95% of the energy produced to produce a gallon of ethanol. I have heard it said if you took all the corn production in the U.S., it would only make up 1/7 of the energy needed. It is not the best solution unless they make it a whole lot better than that. Right now it is just a cartoon band aid on a open gash. It is not going to solve the energy problems we will be facing.
On consumption, the U.S. uses somewhere between 22 and 23 million barrels of oil a day, China 5 million and India, 1.5 million, I believe. The big consumer is US. We needed to start the energy policy some years ago for the infrastructure we need today. Short term won over long term again. Same old story coming out of D.C. Those guys look for the next election, set up poor short term scenarios, then pander to the crisis ($100 rebates). The economist Pareto had it right, I think. The foxes have made a bit of a mess.
MRJ, I was joking about the cattle drive.