Posted on 03/15/2012 8:56:46 AM PDT by mojito
Britain has decided to cooperate with the United States in a bilateral agreement to release strategic oil stocks, two British sources said, in an effort to prevent high fuel prices derailing economic growth in an election year.
A formal request from the United States to the UK to join forces in a release of oil from government-controlled reserves is expected "shortly" following a meeting on Wednesday in Washington between President Barack Obama and Prime Minister David Cameron, who discussed the issue, one source said.
Britain would respond positively, the two sources said.
(Excerpt) Read more at reuters.com ...
Reading the article, it seems like the British government requires British-based oil refineries to store a certain amount of oil on their premises as part of a ‘strategic reserve’. The British government seems to have agreed to relax this requirement in order to get the refineries to release more oil in an attempt to depress prices.
Given that this goes against the British national interest to lower our reserves when there is no shortage, I hope the Obamateur is giving us something substantial in return, especially since he hasn’t done much to establish his pro-British credentials in the last few years...
Somehow I think the plot involves painting Israel into a corner so that if they attack Iran they’ll have left us bone dry for oil because we’ve tapped our reserves. Hmmmm, what a great way for 0bama to seize more control while America is brought to it’s knees and “IT’S ISRAEL’S FAULT”, too..
There's not enough in the petroleum reserves to last that long, and I don't think "The Won" can scrape enough algae off the nation's fish tanks to boost the supply.
“Yes, lets deplete our reserves right before the Middle East erupts into war. Makes a lot of sense.”
Just paving the way for the caliphate of the 12th iman.
If we draw down our reserves, then we cannot back Israel in a war since it would stress our capacity and endanger America.
See? Simple.
Now stop thinking about these things. The Kardashians have some scandal to worry over.
Oh goody, China and India appreciate that gesture, more oil for them.
It will not have 0.000000000001% effect upon the world price of oil, just gives the Asian countries more oil to buy.
This is a complex problem. Of course it is political, but it also may scare speculators out of the oil futures market somewhat which is part of what is causing the price rise in gasoline. Several decades ago, end users comprised 70% of the futures market in oil. Now speculators/investors comprise 70% of that market. Most of the oil used on the east and gulf coasts is Brent Crude which is $10 to $20 per barrel more than West Texas Intermediate. Cushing, OK storage tanks are stuffed, and Obama has finally approved the portion of the XL pipeline between Cushing and the gulf refineries.
Another interesting fact is that we are apparently now EXPORTING about 2% of our oil, and if the entire XL pipeline is built will export even more. Should we regulate the Oil Companies to not export oil and refine more and lower our gas prices? If we are exporting oil, then added drilling seems irrelevant. Chinese and Indian demand is driving the market and speculator enthusiasm. The Oil Companies will all play these factors to their best advantage. I also read that the Oil Companies have shut down around 19% of refinery capacity for periodic maintainance. If the Oil Companies start refining more oil and can get the cheaper oil from Cushing, this should help more than just scaring the speculators. Then again the oil companies may keep production low to keep prices high and/or to help Republicans (politics goes both ways). In other words when the elephants fight we mice should head for the trees.
Cameron is a Conservative on an austerity kick with taxes that are pushing up the price of gas in Britain. I am not sure how this makes him a socialist dupe. Please explain.
The wholesale gasoline price in Great Britain is pretty much exactly the same price as it is in the US. The retail price in Britain is considerably higher because they tax it at about $8 a gallon.
Socialist countries do not like people driving about on their own. They want everyone in cattle cars so that they can go where the government wants them to go and when the government allows them to go.
Obama would just love it if gasoline were $12 a gallon here in the US. That would force Americans out of their cars and into the buses and trains that are run by the government.
Yes, P-M. The price of crude is roughly the same worldwide. The process to refine is the same. Transportation is the same. The equipment price is roughly the same.
There is only one reason for Europe’s gasoline to be double and triple the price of US gasoline.
Government taxation.
While liberals want everyone in mass transportation, they refuse to acknowledge the huge differences between US and Europe with its densely populated countries.
I guarantee you that if it were profitable to be running a passenger service between Cincy and Cleveland, then some businessman would be doing it.
Rush just said that if we went after our oil we 1.2 to 1.4 trillion Barrels of oil enough to last 200 or more years without us ever importing anymore oil!
LOL
Maybe some updated obama speeches to upload to the Queen’s ipod, or a moochelle obama exercise video
Rush just said that if we went after our oil we have 1.2 to 1.4 trillion Barrels of oil enough to last 200 or more years without us ever importing anymore oil!
Does Great Britain even HAVE “strategic petroleum reserves?
We do. Easy to forget that we are an oil producing country too, though we do produce more natural gas.
If so how much and where?
About five to fifteen years worth, in various locations. The strategic reserve is handled by the War Office - they are not terribly forthcoming with details.
Why is this a “joint” decision?
Bloody good question. I’d like to know that too - how can your POTUS dictate that WE release some of our stratigic reserve to cover his a**.
Here is Fox news report on that,
White House pushes back on report of deal with Britain to tap oil reserve
not only removed from office.....they need to be wearing stripes and breaking rocks all day in the hot sun for the rest of their lives.
“LOL. Never saw that coming. You would ALMOST think this is purely a political move during an election year.”
Coming next (after gas prices continue to climb):
- price controls, and/or
- rationing
The latter in particular if prices zoom skyward after the Israelis attack Iran.
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