There are some things that are unbelievable that happen nevertheless. As the details of the latest relief bill for the coronavirus impact on the nation get disclosed, some truly bizarre items are getting uncovered. One such item is that the Democrats insisted that money for buying oil for the national petroleum reserve is blocked.
Think about that. Decades ago, the federal government established a strategic petroleum reserve. This is an enormous amount of oil stored in special underground tanks for use in a national emergency. Right now, the reserve is about 77% full. The price of oil, however, has fallen to a 20 year low in the aftermath of the virus cutting demand and the price war between Saudi Arabia and Russia in the world oil market. As a result, oil is selling for just over 20 dollars per barrel rather than the more than 60 dollar per barrel price that has been the recent norm. That makes this a very advantageous time to replenish the reserve with very low cost oil.
The Democrats, however, blocked these purchases. They denounced the potential purchases as a "bailout for big oil". Really? Are they kidding? Just think about how many times you heard the Dems complaining in the last month that the national stockpile of medical items was too small or not complete. Now imagine that we suddenly need the oil from the national reserve but that it is only three quarters full. The Dems won't care that this is their doing; they will castigate the President because the reserve is not full.
The USA will survive fine without filling the reserve. This was just the appropriate time to buy more oil. The immense stupidity of the Democrats in blocking this purchase, however, ought not be forgotten.
Think about that. Decades ago, the federal government established a strategic petroleum reserve. This is an enormous amount of oil stored in special underground tanks for use in a national emergency. Right now, the reserve is about 77% full. The price of oil, however, has fallen to a 20 year low in the aftermath of the virus cutting demand and the price war between Saudi Arabia and Russia in the world oil market. As a result, oil is selling for just over 20 dollars per barrel rather than the more than 60 dollar per barrel price that has been the recent norm. That makes this a very advantageous time to replenish the reserve with very low cost oil.
The Democrats, however, blocked these purchases. They denounced the potential purchases as a "bailout for big oil". Really? Are they kidding? Just think about how many times you heard the Dems complaining in the last month that the national stockpile of medical items was too small or not complete. Now imagine that we suddenly need the oil from the national reserve but that it is only three quarters full. The Dems won't care that this is their doing; they will castigate the President because the reserve is not full.
The USA will survive fine without filling the reserve. This was just the appropriate time to buy more oil. The immense stupidity of the Democrats in blocking this purchase, however, ought not be forgotten.
No comments:
Post a Comment