Oil Slickness In tapping strategic reserves, Clinton misses the point

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Oil Slickness In tapping strategic reserves, Clinton misses the point Source: Christian Science Monitor

Publication date: 2000-09-25 Arrival time: 2000-09-24

President Clinton, acting on the advice of his favored successor, Al Gore, and perhaps his candidate-wife, has hit a dry hole by draining the strategic oil reserves. Mr. Clinton says American consumers - many of whom go shopping in 8,000-pound SUVs - "shouldn't have to drain their wallets to drive their cars or heat their homes."

So, he seeks to reduce fuel prices by about 10 percent - maybe - by releasing 5 percent of the crude stored in salt domes along the Gulf Coast. (See story on page 1.)

Never mind that those stocks, by law, are to be used only for severe supply disruptions. Heating - oil supplies are down, yes, but this late-in-the-season release won't help the supply problems in the Northeast and election-critical Midwest, analysts say.

Oil refineries are already running near their maximum. And heating- oil stocks appear low because dealers have shifted over to a "just in time" management of their inventories.

Yet, putting politics and pipelines aside for a moment, this oil- reserve release also shows Clinton has failed, like recent presidents, to come to terms with the up-and-down pricing of the OPEC cartel.

As a result, the nation continues its high dependence on imported oil, and on OPEC's pricing whims.

It is not high prices that matter as much as price fluctuations - and OPEC knows that.

A lack of stable prices over many years has dampened investment in energy alternatives and renewables, while also reducing the momentum toward energy conservation fuels.

OPEC, in its price gyrations, keeps Americans addicted to its oil exports.

Just look at what Congress has done to force gas-mileage standards on SUVs and light trucks. Nothing. Yet SUVs are now over 50 percent of new-car sales.

Simple steps like conservation or supporting hybrid gas-electric cars or building more mass transit would help keep the United States from lurching from energy crisis to energy crisis.

George W. Bush, while correct in criticizing the president's tapping of the strategic reserve, doesn't fare much better by suggesting more oil drilling, especially in delicate wilderness spots. And Republicans in Congress need to fund more research in conservation technology and renewable energies.

Perhaps the US needs a second oil reserve that can be tapped to keep prices constant enough - and high enough - so investors feel secure in seeking alternatives to oil. It could be used to stabilize oil prices in the same way the Federal Reserve stabilizes monetary supply and interest rates.

By keeping oil prices level, the US can eventually reduce consumption of a polluting, nonrenewable resource. (c) Copyright 2000. The Christian Science Publishing Society

http://cnniw.yellowbrix.com/pages/cnniw/Story.nsp?story_id=14194027&ID=cnniw&scategory=Energy%3AOil

-- Martin Thompson (mthom1927@aol.com), September 24, 2000

Answers

The hybrid gas-electric car is the perfect solution.

-- Nancy7 (nancy7@c-zone.net), September 24, 2000.

I think the hybrid gas-electric car is a good idea, but only a partial solution. Can anyone name a single piece of alternative energy legislation Clinton has sent up to Congress? Carter flooded Congress with such.

The blame game is just starting, but Clinton's total lack of any kind of energy policy starts him with a short hand.

-- Billiver (billiver@aol.com), September 24, 2000.


I disagree with the above. Developing alternative energy sources is three to ten years down the road. The only alternative now is to develop more oil resources, and, most importantly, build more refineries.

-- Chance (fruitloops@hotmail.com), September 25, 2000.

Hey Fruitloops Thats why willy should've started 8 years ago....so should have Bush..and Reagan...We're a country of fuel hog idiots just waiting to be screwed. We've had our chances to learn....but we're to fat and lazy.

-- wondering (vission441@dot.com), September 25, 2000.

Hey fruitloops - You said alternative energy is 3 to 8 years down the road. How long do you think it takes to build a refinery? From beginning to end it takes 3 years (or MORE) to build a refinery. Why so long? The permit and regulatory process, financing AND don't forget the engineering process, architectural process, contract letting process. Egads! its not like building a house on an empty lot in the neighborhood. It takes 1 year to build a custom mansion and half of that is because of changes the designer wants to make and the other half is because progress is at the mercy of the subcontractors because there is a shortage of construction labor.

The immediate answer is conservation, not alternatives and not more refineries. Conservation is available now, not 3 - 8 years down the road.

Aside from that if every SUV was magically replaced with a Honda Insight today, oil would be under $10 a barrel in a week.

-- Guy Daley (guydaley@altavista.com), September 25, 2000.



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