Sunday, March 13, 2011

Should we tap the Oil Reserves to help lower the price of Oil?

That is the question this morning on Candy Crowley's CNN program this morning. Sen. Dick Durbin believes we should and Candy pointed out to the Senator that President Obama says it should be used for supply shortages not to just lower the price of oil. There were no facts presented as to how many days supply do we have today and would using the Oil Reserves really prevent a setback to our economy if we don't use it. So here is one fact. There are about 726 Million barrels of Oil in our Strategic Oil Reserves. That supply would last only 34 days! Now here's the question for you given that bit of new information: Should we use the Strategic Oil Reserves to ease gas prices?

Source of data on Strategic Oil Reserves.

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3 Comments:

Blogger Enrique said...

No, we should not tap the reserves. What we should do is for the President and The Congress to pass immediate legislation to render the USA independent from foreign oil. The country should embark in a Manhattan Type Project to accomplish that. You will immediately see the oil producers increasing production to take the slack and the price going down to $50 a barrel

9:50 AM  
Blogger Charles Amico said...

Thanks Enrique! Ok, so what do the Japanese need to do to contain those Nuclear reactors? It is looking too late for much to be able to do at this point.

1:18 PM  
Blogger Enrique said...

Japan should and probably is doing is a continouos flooding of the reactors by external methods and later entomb them. The problem, as usual, is companies taking risks for economic reasons.

Nuclear power plants have a certain life due to aging of materials, components and instrumentation, and design of their safety systems. Materials, components and instrumentation can be updated. However, with safety systems is much more complicated. For instance, the modern reactors have passive safety pools of water that can flood the reactor in case of loss of cooling water. Old plants require active systems. i.e. active pumps to flood the reactors. Even with redundant power systems the probability exist that those systems may be impaired to start like in Japan’s Fukushima Plants. A program to extend the life of plants based on economic factors has been applied all over the world. Several plants that should have been decommissioned are still working. The right approach is to replace those old plants with new nuclear plants that are up to date, specially in areas where credible natural disasters may jeopardize the operation of the plants. By the same logic, airlines would not continue operating DC-3s today in their commercial routes.....

9:44 AM  

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