The possible advent of Hurricane Gustav toward the Gulf of Mexico
and oil production facilities both offshore and onshore has jumped
the price of crude oil by some five dollars a barrel this past week and
according to reports on CNBC this morning is already beginning to show
up in increases in the price of gasoline.
We, as a nation have over 700 million barrels of oil, bought and paid for, in our Strategic Petroleum Reserve. Barrels that could be made available to industry
in case of any serious or otherwise disruption in the production/flow of oil.
Yet not a word from our Department of Energy that they stand ready to
supply any needed supplies of crude in case of any Gustav-induced supply
interruption. Such an announcement might back off the price of
oil by the five dollar jump. But of course that would mean some $100 million less a day lining the pockets of oil interests ($5.00 x 20 million bbls/day)
What is the Strategic Petroleum Reserve for if not a situation such as
this? And we would not even be replacing lost barrels, simply deferring production that would become available at a slightly later date.
Don't count on this administration to do anything to contain the price of oil and thereby bring consternation to their cronies in the oil patch. As for the rest of us, well they won't have to answer to us in another four months from their comfortable sinecures in the oil industry, so why should they care.