BUSINESS: U.S. Taps Strategic Petroleum Reserves in Bid to Lower Price, page 1

posted on Sep, 24 2004 @ 10:35 AM

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In an effort that can be read as an economic or political move to prevent crude oil prices from rising over $50 U.S.D. the energy department is "loaning" refiners oil stock from the strategic petroleum reserves.

Government claims are that hurricane Ivan had disrupted supplies.

www.reuters.com
LONDON (Reuters) - Oil's advance wavered a little on Friday as the U.S. government prepared to lend out some strategic crude stocks, but traders said the amounts were small and that supply worries remained.

Disruptions due to Hurricane Ivan, together with spiraling prices, have prompted the Bush administration to start negotiations with refineries over two-to three-week oil loans from the nation's emergency stockpile.

The U.S. Energy Department is set to approve the loans from the 670-million-barrel SPR, once the details are worked out with the refineries, a congressional source briefed on the pending decision told Reuters.

Please visit the link provided for the complete story.

Some will claim that this is purly a political move designed to hold down prices at the pump so close to an election. The disruption to supplies by Ivan and other events worldwide seem to support this move.

Or is it likely that this is another step in the direction of "peak" oil as has been reported on ATSNN.

Related News Links:
money.cnn.com
www.usatoday.com
quote.bloomberg.com

Related AboveTopSecret.com Discussion Threads:
SCI/TECH: Is The World's Oil Running Out?

flycatch

posted on Sep, 24 2004 @ 01:50 PM

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The demand for oil is high and the resources are low but this only pertains to the grade of oil pursued. We, the U.S., are pursuing other sites away from the middle east and the process is slow. Until we are able to develope alternate suppliers the price for grude will remain high. Peak oil is nothing more than a myth.

chaosrain

posted on Sep, 24 2004 @ 01:54 PM

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Looks to me like efforts to 'secure the oil infrastructure in Iraq for the purposes of global energy price stabilization' aren't exactly working out if we're dipping into our reserves to keep prices down.

Whoops.

taibunsuu

posted on Sep, 24 2004 @ 01:56 PM

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Originally posted by chaosrain
Looks to me like efforts to 'secure the oil infrastructure in Iraq for the purposes of global energy price stabilization' aren't exactly working out if we're dipping into our reserves to keep prices down.

Whoops.

Kinda hard to do that when the insurgents hit oil infrastructure on a daily basis, including blowing up a transfer station outside Basra that burned for three days. But don't worry, they're just a bunch of dead-enders.

MattMarriott

posted on Sep, 24 2004 @ 02:44 PM

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the DOE is hiding the dramatic decrease in the US production taking place NOW - as it was explained long ago here

www.abovetopsecret.com...

Production in the world's 2 largest oil fields rapidly coming to an end - SOON

www.abovetopsecret.com...

[edit on 24-9-2004 by MattMarriott]