Tuesday, May 13, 2008

Suspension of new supplies to the Strategic Petroleum Reserve

The House of Representatives on Tuesday followed the Senate in rejecting the Bush administration's policy of adding oil to the country's Strategic Petroleum Reserve while fuel prices are high.

The House passed legislation that would suspend crude deliveries to the U.S. emergency oil stockpile while the price of oil was above $75 a barrel, a move the White House has opposed. Oil traded at a record near $126 a barrel on Tuesday.

Much of the oil placed into the reserve come in lieu of royalty payments from the oil companies, so it isn't an out of pocket expense for the United States. Additionally, the suspension will have absolutely no affect on the price of oil. I can't say I'm outraged by the suspension, but I am sick of congress make pointless gestures because it is politically easy to do. There are much better ways they can address our energy issues, but they require standing up to irrational environmentalists, something they are loathe to even think about.

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