Energy Dept. sets aside more oil

by MsMcDucket 4 Replies latest social current

  • MsMcDucket

    Energy Dept. sets aside more oil

    Associated Press Writer

    WASHINGTON - The Energy Department said Friday it would continue putting oil into the Strategic Petroleum Reserve even as crude oil prices remain above $100 a barrel.

    The department announced a solicitation of bids for 13 million barrels of oil, with deliveries expected to begin in August, when the current delivery contracts expire. Oil will be put into the reserve at about 76,000 barrels a day, about the same rate as current deliveries, through December.

    Bids are due by May 13, the department said.

    The government reserve, which was created to serve as a cushion against major oil supply disruptions, has a capacity of 727 million barrels. It now holds about 700 million barrels.

    The administration's policy of diverting oil into the government reserve at a time of high prices has been criticized by some congressional Democrats. Sen. Byron Dorgan, D-N.D., has urged a suspension of deliveries to the reserve.

    "Not only are taxpayers being fleeced by paying that much for oil, but the effect of taking valuable oil, like sweet crude oil, off the market has a disproportionate effect on oil prices," Dorgan has argued.

    Energy Department officials have countered that the amount of oil being put into the reserve is too small to affect the oil markets, which globally consume 86 million barrels of oil a day.

    The department isn't buying the oil directly. It takes oil in lieu of royalty payments on oil pumped from public lands. That oil is then traded for the type of crude needed for the reserve and delivered by the contracting company. The reserve is on the Gulf Coast.

    The department also has left open the possibility of spending $584 million later this year to repurchase oil sold from the reserve in 2005 because of supply disruptions caused by Hurricane Katrina.

    Two years ago, President Bush temporarily halted the delivery of oil into the reserve as part of a plan "to confront high gasoline prices" as the summer driving season was about the begin.

    "When supplies are tight, every little bit counts," the White House said at the time. No shipments to the reserve were made from May 2006 to April 2007.

    Weekly average gasoline prices during that period generally remained under $3 a gallon, dipping to $2.16 a gallon at one point, according to Energy Information Administration figures.

    On Friday, light sweet crude oil was as high as $106 a barrel and retail gasoline prices surged to a new record of $3.30 a gallon.

  • uwishufish

    The administration's policy of diverting oil into the government reserve at a time of high prices has been criticized by some congressional Democrats.

    Prices are not going to get any cheaper.

  • dinah

    Big Oil started all this.

    Its backfired. I think its fuckin funny. To quote scripture.....................who will buy their goods...................

  • MsMcDucket

    I wonder if any "honest graft" is going on here!

  • MsMcDucket

    Famous little article from way back when on how to get rich on "honest graft".

    "Honest Graft and Dishonest Graft"

    Very Plain Talks on Very Practical Politics

    by Senator Plunkitt of Tammany Hall

    recorded by William L. Riordon


    This is one of the most famous talks on practical politics by the Democratic senator of New York (District of Tammany), George Washington Plunkitt, at the beginning of the 20th century.
    It is rightly famous for the candid and straightforward manner in which politics is portrayed. Not many politicians had the courage of qualifying the behaviour and the finalities of the elected representatives as "honest graft".
    For the motives behind the political activism of the electoral body see the talk on Patronage at:

    EVERYBODY is talkin' these days about Tammany men growin' rich on graft, but nobody thinks of drawin' the distinction between honest graft and dishonest graft. There's all the difference in the world between the two. Yes, many of our men have grown rich in politics. I have myself. I've made a big fortune out of the game, and I'm gettin' richer every day, but I've not gone in for dishonest graft - blackmailin' gamblers, saloonkeepers, disorderly people, etc. - and neither has any of the men who have made big fortunes in politics.
    There's an honest graft, and I'm an example of how it works. I might sum up the whole thing by sayin': "I seen my opportunities and I took 'em."

    Just let me explain by examples. My party's in power in the city, and it's goin' to undertake a lot of public improvements. Well, I'm tipped off, say, that they're going to layout a new park at a certain place. I see my opportunity and I take it. I go to that place and I buy up all the land I can in the neighborhood. Then the board of this or that makes its plan public, and there is a rush to get my land, which nobody cared particular for before.
    Ain't it perfectly honest to charge a good price and make a profit on my investment and foresight? of course, it is. Well, that's honest graft.

    Or supposin' it's a new bridge they're goin' to build. I get tipped off and I buy as much property as I can that has to be taken for approaches. I sell at my own price later on and drop some more money in the bank.
    Wouldn't you? It's just like lookin' ahead in Wall Street or in the coffee or cotton market. It's honest graft, and I'm lookin' for it every day in the year. I will tell you frankly that I've got a good lot of it, too.
    I'll tell you of one case. They were goin' to fix up a big park, no matter where. I got on to it, and went lookin' about for land in that neighborhood. I could get nothin' at a bargain but a big piece of swamp, but I took it fast enough and held on to it. What turned out was just what I counted on. They couldn't make the park complete without Plunkitt's swamp, and they had to pay a good price for it. Anything dishonest in that?

    Up in the watershed I made some money, too. I bought up several bits of land there some years ago and made a pretty good guess that they would be bought up for water purposes later by the city.
    Somehow, I always guessed about right, and shouldn't I enjoy the profit of my foresight? It was rather amusin' when the condemnation commissioners came along and found piece after piece of the land in the name of George Plunkitt of the Fifteenth Assembly District, New York City. They wondered how I knew just what to buy. The answer is - I seen my opportunity and I took it.

    I haven't confined myself to land; anything that pays is in my line.
    For instance, the city is repavin' a street and has several hundred thousand old granite blocks to sell. I am on hand to buy, and I know just what they are worth. How? Never mind that. I had a sort of monopoly of this business for a while, but once a newspaper tried to do me. It got some outside men to come over from Brooklyn and New Jersey to bid against me.
    Was I done? Not much. I went to each of the men and said: "How many of these 250,000 stones do you want?" One said 20,000, and another wanted 15,000, and other wanted 10,000. I said: "All right, let me bid for the lot, and I'll give each of you all you want for nothin'."
    They agreed, of course. Then the auctioneer yelled: "How much am I bid for these 250,000 fine pavin' stones?"
    "Two dollars and fifty cents," says I.
    "Two dollars and fifty cents!" screamed the auctioneer. "Oh, that's a joke! Give me a real bid."
    He found the bid was real enough. My rivals stood silent. I got the lot for $2.50 and gave them their share. That's how the attempt to do Plunkitt ended, and that's how all such attempts end.

    I've told you how I got rich by honest graft. Now, let me tell you that most politicians who are accused of robbin' the city get rich the same way.
    They didn't steal a dollar from the city treasury. They just seen their opportunities and took them. That is why, when a reform administration comes in and spends a half million dollars in tryin' to find the public robberies they talked about in the campaign, they don't find them.

Share this