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    Should The Government Tap The Oil Reserve?

    In 1973, Egypt and Syria launched a surprise attack on Israel that became known as the Yom Kippur war. The United States stood strong beside Israel; its ally and only true democracy in the Middle East. For that reason OPEC (Organization of the Petroleum Exporting Countries, a cartel of 12 oil producing countries) held an embargo against the United States that led to an oil shortage.


    To prevent something like this from happening again, the US established a Strategic Petroleum Reserve. This reserve contains 727 million barrels of oil and is the largest stockpile of government-owned emergency crude in the world. The reserve is overseen by the US Energy Department and is stored in underground salt caverns in Louisiana and Texas.

    +6  Views: 940 Answers: 3 Posted: 7 years ago
    Raider_retired 3_29_

    Good question but, I do not fully agree OPEC's embargo was for that reason only but, part of the reason. Good informative question TU from me. My answer on releasing the Strategic Petroleum Reserve is below. Good insight and research.

    leeroy

    Great question, and I like the research information.

    3 Answers

    I thought that they kept it for wartime, which we are in in case we haven't noticed? You can't tell by watching the news, that's for sure.
    One of our biggest problems is that we don't have enough factory's to refine the oil. So we can only have a certain amount of gas at any given time.
    This country needs to drill plain and simple not relying on the middle east so much. China and Cuba are drilling into oil between Florida and Cuba, taking oil that we could be using to lower the prices here in the U.S. , but our hands are being tied by the green politics in Washington. I am all for green and alternative fuels, but we need to address the problem of high oil prices now as well.


    We also need to build more oil refining plants to keep up with our huge appetite for gas. But there is a moratorium on drilling in the gulf and sometimes you need to stop digging when you are in a hole.


    These ridiculous gas prices need to be addressed now, because gas prices effect the price of everything that we consume.

    Raider_retired 3_29_

    Good answer. Thumbs up from me. My answer is below yours and I take a differnt view point but, agree with you. How about a Thumbs up for my answer if it sheds a little light on this complex issur! Thanks Friend

    If the oil reserve was tapped, it would only provide oil for a day or two. We have a glut of oil, just not enough refinery's and poor gas distribution. The price of oil is going up because it is a commodity, just like copper, gold, silver, etc. The dollar is quickly losing its trusted value, and people are buying up commodities for when the dollar becomes worthless, probably within the next year or two, unless something drastically changes.

    The Strategic Petroleum Reserve was developed in case we lost one of main supplies of oil, Saudi Arabia specifically. Yes you are right about the 1973 embargo. But there were other factors behind it. We get very little oil from Syria and not much from Egypt. That oil is for strategic emergencies. Yes some can and should be released if prices hits $5 but, it will not lower the prices we pay. Then it leaves us more vulnerable to a real loss of oil from one of our main suppliers. So it is a two headed sword we face now. Besides if people drive less now it can only help the environment and a decrease in demand of gas which will lead to lower prices per gallon.



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