Bending the Third Rail
Because We Should, We Can, We Do
Tuesday, April 25, 2006
Strategic Move
So, Bush is going to "crack down" on oil companies while reducing environmental standards (surprise surprise), and stop the inputs into the strategic oil reserve.

All of this is fine, if it mattered. He won't crack down on any corporation, relaxing the environmental standards is something he wants to do anyway, and the actual shortage of oil is not the issue. In fact, oil stocks are very high right now. Plus, the amount of actual impact is negligible:
Dow Jones reports that the move would free up about 70,000 barrels a day otherwise destined for the reserve in the coming weeks.

By my calculations, that's about one third of one percent of the total U.S. consumption of about 20 million barrels a day -- anyone want to call that a drop in the bucket?
But being all stupid and such, I'm sure Bush thinks that oil traders and gasoline brokers are like him and will fall for this tepid response.

We have a shortage of gasoline caused by refinery disruption and risk premium. Gasoline refining is disrupted due to Katrina. The discontinuance of gasoline imported from Europe as an emergency measure after Katrina has also left a shortfall, and the risk premium due to the idiot's foreign policy is being priced into the market.

Perhaps the market place will respond to these largely symbolic gestures, maybe not. I suspect it won't in any significant way until sometime closer to the election.
Written at 10:52 AM by Greyhair.
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