Hands Off The Oil Reserve

   As turmoil in Libya continues to heat up, so does our nation's gas prices. In a recent article from the editorial staff for the LA Times newspaper called Hands off the oil reserve, the author[name unknown] tries to convince the general public that tapping into our oil reserves is not the best solution. The author begins the article with a generalized accusation that politicians propose using the nation's oil reserves as a first response whenever fuel prices increase. Rising fuel costs are not a new issue in our nation. They tend to fluctuate with the economy's supply and demand.  However, the current spike in our fuel price jumped $.33 overnight.  I believe this gives the people and our government a reason to be concerned.  The author states that Sen. Jeff Bingaman (D-NM), chairman of the Senate Energy and Natural Resources Committee, urged President Obama to sell off the petroleum reserves. The author continued to provide additional information stating that the Obama administration was considering this option.  The sources the author used are credible and factual.The author expresses his concern in hopes that the issue will not be acted upon and follows up by telling the readers that "There are no compelling reasons for the U.S. to draw upon its emergency oil supplies." Why not? What are the reasons not to? The author tells the readers when and why the reserves were created and also is factual in stating that in recent history the government had tapped into these reserves as a result of hurricanes halting production. The author tries to back up his/her point by mentioning the rebellion in Libya, which in turn has interrupted crude supply to Europe and that additional factors are causing the fuel price increases. I completely agree.  When I read the 4th paragraph the author wrote about India and China this, then GM did that, Libya, and Americans need to focus on alternative energy, I was completely lost.  This whole paragraph could have been left out, because it does not really convey any message to the story. In the author's conclusion, he/she asks the readers if government tapped the reserves, won't the high gas prices drop down?  To which the author somewhat disagreed.  I believe that is the point! Why else would we use the reserves?  I agree with the author that the U.S. is in no short supply of oil but disagree with their opinion that using the reserves should be saved for more serious emergencies.

    I have several arguments with this editorial.  I believe that the spike in fuel costs will only deepen our recovery problems. Higher fuel prices are just the beginning.  Our food prices will skyrocket and commerce will slow. This is a compelling enough reason to utilize our reserves and stabilize fuel prices. As far as the current issues in Libya go, the United States is only affected indirectly. Yes, we do import directly through Libya, but only about 90,000 barrels a day. This amount is a fraction of our daily use. However, Europe depends much more on Libya. With the cease in supply, the cost per barrel of crude is controlled by ICE Futures in London. Currently at over $117 per barrel, most experts believe this is only speculation based on fear.  I believe our reserves can at least hold us over until things boil over in Libya. If we act now we can prevent our economy from slipping backwards. With over 700 million barrels, we would only need to sell a small portion.  After Hurricane Katrina, our government tapped the reserves of only 20 million barrels and this caused a decrease in fuel prices on the first day.  For Hurricane Ike, we used much less. 

    In conclusion, I feel that the author expressed his opinion on this issue without stating any tangible arguments as to why we shouldn't tap our reserves. Americans do not need any long term solutions right now. Most of us have been struggling to survive and a short term fix to a short term problem should be the solution. It will be a glorious day when we can either depend on our own nation for oil or to harness our addiction with alternative energy sources.    

Resources
CBSNews.com/The Early Show March 7, 2011