Excellent analysis by the Wall Street Journal reinforcing the need to unleash our own energy resources. In order to reduce gasoline prices over the long-term, America must open up the vast oil fields in Alaska and lift the senseless moratorium on drilling in the Gulf. America has the most plentiful energy resources in the world. We should not be forced to rely on our Strategic Petroleum Reserve, while billions of barrels of American oil remain off-limits to production.
White House Oil Epiphany
Wall Street Journal
June 24, 2011
It wasn’t long ago that the Obama Administration was trying to drive up the price of fossil fuels to reduce carbon emissions, promote “green jobs” and save the planet from global warming. Gasoline at $3.50 or $4 a gallon has ended that. And yesterday the White House went so far as to join a global effort to release 60 million barrels from oil stockpiles to further reduce prices.
The U.S. will release one million barrels a day for 30 days from the Strategic Petroleum Reserve—the nation’s 727 million barrel oil stockpile located in salt domes in Texas and Louisiana. The spot price of oil dropped about $5 a barrel on the news, and if that decrease holds it could be the equivalent of a 10 cent a gallon reduction in gas prices.
The White House says it is taking this action because of “supply disruptions” in Libya and other countries which pose a threat to global economic recovery. But the Libyan conflict is now four months old, so Mr. Obama’s falling approval ratings no doubt also provided motivation.
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