Wednesday, August 31, 2005

Oil reserves to be released

This was just posted on The Wall Street Journal On-Line. You need a subscription to view so I'll paste a bit of the article.

"WASHINGTON -- Energy Secretary Samuel W. Bodman said Wednesday the Bush administration has decided to release oil from federal petroleum reserves to help refiners affected by Hurricane Katrina.

'In a word. It is going to be done,' Mr. Bodman said during a CNBC interview."

This, obviously, is in response to Hurricane Katrina and her aftermath. It's bad enough the US is about to face one of the worst energy crises since the 1970's. Katrina rubbed salt into the wound.

However, don't expect gas or heating oil prices to subside anytime soon. The release seems more like a Band-Aid (tm) on a gaping wound over a compound fracture.

3 comments:

CrankyProf said...

Did you hear KYW saying that it looks like heating oil and natural gas will be going up at least 25%, to as high as 40% this winter??

Guess I'm investing in feetie pajamas for the hwole family!

mdmhvonpa said...

This is useless. We could have all the oil in the world and the prices will still go up because we don't have the refineries available to process the crude. It is a ploy to get the speculators to keep a lid on the price increase.

Maidy said...

CP - we're getting a Franklin or pellet stove. And feetie PJ's.

MDM - you should talk to my other half, Geo. He's a trucker and is absolutely fed up with all the talk about the energy crisis. He's been saying for weeks it's a man-made crisis and they're using Mother Nature as a scapegoat.