Tapping Our Reserves Has Failed (Big Surprise)
As we reported just a day after President Obama announced the release of 30 million barrels, the plan has failed. Prices fell a couple of cents after the announcement; and now, even though the Department of Energy acknowledges that all of the oil from the Strategic Petroleum Reserve has been released, prices have climbed back to pre-release levels. This, just a couple weeks after the announcement. Pretty embarrassing.
Gas prices are still pretty volatile, but they have clearly been increasing over the past few days. Surprise, surprise, releasing 30 million barrels of oil did not have a long-term impact on oil prices. Shell Oil President Marvin Odum said the “SPR was a non-event.” Good job, President Obama.
Maybe this was a teaching moment and we can now hope that President Obama understands supply and demand. Unfortunately, he doesn’t seem to grasp the fact that he can not only create thousands of jobs, but also increase government revenue by opening up domestic energy production. One step at a time.