Rep. Markey Says It's Time To Buy Oil For Strategic Reserve

WASHINGTON (December 30, 2008) -- Rep. Edward J. Markey (D-Mass.) and other lawmakers today called upon the Department of Energy to resume buying oil for America's national oil reserves, calling it the prudent response to lower oil prices, just as stopping the fill of the reserves was a prudent response when oil rose above $100 per barrel. Rep. Markey, along with Reps. Peter Welch (D-Vt.) and John Yarmuth (D-Ky.), were principal authors of the bill that forced the Bush administration to stop filling the reserves in May of 2008.

"At current prices, a smart New Year's resolution for the Bush administration is to start buying oil again for our national reserves," said Rep. Markey, who is Chairman of the Select Committee on Energy Independence and Global Warming. "Just as it was prudent to stop buying oil at record high prices, we should continue to fill the reserves now that prices have plummeted. That's sensible fiscal policy, plain and simple."

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Comments

[CaptD]

Buy all the futures the US can ASAP; as this will "insure" that the US has enough oil at the current price for the future + then we can sell it or share it as needed to Countries that are not as wealthy as we are!

RE-FILL every well in the US and then we will not have to drill anymore until our Solar change over is established... Remember pipelines can run both ways...

This will counter the Oil producers gouging us and the rest of the World! This is the logical step in the Battle of EWW1 (Economic World War One).

If we don't take advantage of this "window" of opportunity then:

Oil's net effect on the world's economy will only serve to disrupt the Global recovery which helps both the terrorists and the petrol producers as the rest of the World is less able to shift to Green energy technology!

By restricting the Global supply of cheap, clean energy the terrorists and the petrol producers are in effect holding the poor of every country hostage!

[mamacat]

Of course. Now that there are low demand and "low" prices, it is exactly the time to buy for the oil reserve.

Also of course, Dubya did exactly the wrong thing, driving up the price of oil even higher by trying to top-off the strategic oil reserve at a time of high demand and high prices. So long Junior, don't let the door hit you in the ass on your way out.

[rich misty]

Good idea, good policy

Of course Republicans will hate it and try to stop Democrats.

[gjohntheterrible]

Anything beneficial for the nation the republicans hate.

[Erdgeist]

This is not the Republican way. The Republican way is to buy oil for the strategic petroleum reserve when it is very expensive. Remember that "conservatives", who make up the bulk of the Republican Party, are "the stupid party" according to John Stuart Mill.

[mediamarv]

Typical short term thinking....

[stargazer13]

some one better do some thing ! because it,s getting bad out there in the world .

oil and gas should have been apart of our national security since the 70,s

our country will not run with out it because there is nothing on the scale we need in place to help with the pressure of not having it

[SimJack]

Based on the Bush-Gomez Addams School of Business, Economics and Creepiness way of thinking, we should sell now to reduce the Strategic Reserve while the prices are low, then buy when the price is high again. Give it a little thought, there must have been a financial reason why the Presichimp Bush was stocking the Strategic Reserve when oil was >$100/bbl. I wonder just how much he and his 'associates' (emphasis on first 3 letters of 'associates') took in during that time?

Bush = Gomez Addams
Cheney = Uncle Fester

[RTIII]

OF COURSE IT"S TIME.

The reserve should be kept full and NOT sold off when prices are high. In fact, that's the time when the reserves must be kept secured and NOT used or sold because the WHOLE POINT is to have SOME if oil supplies get cut off! The reserve is NOT there for trying to soften the market's swings! (It's not big enough - not by a VERY long shot.)
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[Peter007]

What's frustrating is that this is even a topic for discussion. It gives me the impression that the policy for filling and using the strategic reserve is open to public discourse. Maintaining an adequate reserve should be the job of a low level clerk. Buy when it is low, sell when it is high. It appears the Senate has nothing better to do that micro manage government inventories. How's the paper supply doing? Have enough pencils? By opening their mouths on this one, they wanted to appear to be responsible. Too bad. They look like petty fools.

[RTIII]

Buy when low, yes, but DO NOT SELL.

The Reserve Is A STRATEGIC Asset, not a hedge fund for world oil prices.

You're right that it's frustrating that this is even a topic for discussion and that there's even a suggestion that it's "open to public discourse." The PURPOSE of the Strategic Petrolium Reserve is to ensure we have SOME when supplies are cut off. If we merely sell them off when the price is high, we won't have any for the intended purpose, and the supply is not nearly large enough to be an effective buffer against rising world oil prices.
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[SimJack]

It's not a hedge fund for world oil, indeed. It's a Bush Fund.

[Peter007]

Yes, you are right. Its not a public hedge fund. I hesitate to mention that line of thinking because I'm not in total agreement for having such a reserve. The US produces 40% of our oil. Other sources come from Canada and Mexico. These are two reliable sources. I don't ever see a time whereby we would need the strategic reserve to fight a WW 2 type battle. Those days are gone.

[MetalCanuck]

This actually is a good idea. Oil will not be this cheap forever..even if it goes down a bit more its not going to last because of all the production cuts.

[totalliberal]

Are you kidding. Then the oil companies wouldn't make as much money. The Horror, the horror.

[BobTrader67]

And what about the airlines, I hope they are buying futures contracts and locking in decent prices for themselves. Lets face it, cost about 20$ to pump a barrel of oil, and ship it anywhere in the world, so at $40 the oil companies are making enough money, they had their bonanza last year, and now it is time for them to play ball with reasonable margins. Check out this cool site for traders, http://www.freetradingquiz.com

[PhilipTaylor]

END the Israeli assu1ts and it will be a better time yet as Crude will drop somemore!

[TJCole]

Of course now and for a few months now is the time to buy for the Strategic Reserve even if it is the light sweet crude which our refineries are not really designed to refine but what Saudi Arabia sells...

[sloreader]

Only if we have excellent storage capability.