Gasoline prices unlikely influenced by using United States oil reserve

The U.S. strategic oil reserve is being eyed by some members of Congress as a remedy to increasing gas and oil prices. The United States has an abundance of oil and gasoline on hand apart from the strategic reserve, yet some lawmakers think an additional infusion of supply will lower prices. Gas costs haven’t risen high enough yet to tap the reserve, according to the administration, which contends that such a move would send further panic through international oil markets.

The reason Congress would like this/span>

The largest oil reserve in the world is the United States strategic petroleum reserve. About 727 million barrels of oil are in there. Nationwide, the average price of a gallon of gas has risen 28 cents in the past 10 days. Selling a part of the strategic oil reserve was suggested by Senator Jeff Bingaman, D-N.M., as the chairman of the Senate Energy and Natural Resources Committee. He said this would help keep oil costs stabilized. Other politicians are saying that in addition to tempering upward pressure on gas prices, selling some of the strategic oil reserve would raise billions of dollars for deficit reduction and help fund programs to reduce United States oil consumption, such as tax breaks for electric vehicles and hybrids.

United States not running low on oil/span>

The Obama administration objects to tapping the U.S. strategic petroleum reserve as a response to the current spike in gas and oil costs, even though its 2012 spending budget proposal calls for selling $500 million worth of oil from the reserve to fund certain programs. What the administration believes is that, when the U.S. is not at all running short on oil, it would send a panic that is false to customers. A major oil storage facility in OK that supplies the interior U.S. has record inventories. From Canada, the United States is getting gasoline while North Dakota is beginning to produce. The U.S. Energy Information Administration reports that there is an abundance of oil in the crude oil inventories. It has reached 346.4 million barrels. U.S. gasoline inventories are at 9.86 billion gallons. Both inventories are at above-average levels for this time of year.

Solving the oil and gas price problem/span>

The Obama administration is making a good decision, oil industry analysts suggest. It would make individuals driving up the gasoline prices more fearful while doing nothing else to oil and gasoline prices. The supply of oil is not the problem, many suggest. They think a shortage of surplice production capacity is the issue everybody is facing. Continuing troubles in the Middle East will be the issue. The surplus oil production will stop. Without a surplus oil production capacity, there are many issues. The real troubles with oil price would begin. The oil markets will be better if the capacity to produce oil settles instead of attempting to temporarily stop the problem.

Information from/span>

New York Times

nytimes.com/2011/03/04/business/energy-environment/04oil.html?_r=1

Foreign Policy

oilandglory.foreignpolicy.com/posts/2011/03/04/the_weekly_wrap_march_4_2011

UPI

upi.com/Business_News/2011/03/03/Crude-oil-supplies-fall-slightly/UPI-22221299189942/