Got to thinking about the gas prices and why we have the oil reserves in the first place. Did dome searching and found this:
http://www.cnn.com/TRANSCRIPTS/0009/22/ip.00.html
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BUSH: It's a bad idea because these petroleum reserves need to be used in case of war or major disruption of energy supplies.
What do you suppose we have been doing in Iraq for the past year? Playing cowboys and indians? His comment is regarding opening up the oil reserves. Bill opened them up when the price was only $33 a barrel to show the cartel we were not going to take the shit.
And from reading an article this morning on reuters it seems that the cartel is trying to keep the prices this way. Saying it will not help even if they do increase the output per day. They want it to stay at this level.
http://www.reuters.com/financeNewsAr...ryID =5205106
"While the oil market still holds above $40 a barrel...that is due to factors beyond OPEC's scope," Indonesia's OPEC President Purnomo Yusgiantoro told a press conference in London. "It is not an upstream problem,"
Analysts agree low stocks of gasoline in the United States are leading prices now. But they say OPEC helped create the conditions for the oil spike by restraining supplies and preventing stocks building as normal during the low seasonal demand period of the second quarter.
and this quote from the cnn url (transcript) above:
This is more about psychology, showing the markets and showing the OPEC cartel that the (clinton) administration is willing to intervene in the energy markets. If it does not increase supply and drive down prices, Secretary Richardson said the president would consider authorizing even more, but that would only increase the controversy.
The moral to this story? Bush said himself that the reserves should be used in a time of war or emergency. Even though we have been at war for over a year prices are at their highest peak ever, he is still not doing anything about it. I would be surprised if Cheney is helping him in this decision.
He might wait another month or two in order for a feel good with the american public right before the elections, but by that time when the prices do drop we will be looking at $30 a barrel minimum.
Some other interesting links, like how it all works etc:
http://www.csupomona.edu/~av/howthin...ces%20Work.htm
One last thing before I quit, this from the OPEC's own website:
http://www.eppo.go.th/inter/opec/OPEC-about.html
Does OPEC control the oil market?
No, OPEC does not control the oil market. OPEC Member Countries produce about 41 per cent of the world's crude oil and 15 per cent of its natural gas.
However, OPEC's oil exports represent about 55 per cent of the oil traded internationally. Therefore, OPEC can have a strong influence on the oil market, especially if it decides to reduce or increase its level of production.
Spend 20 minutes today reading this and the next time someone starts talking about gas prices, you can tell them exactly why they are high. Just some food for thought for the day.