Madinat al-Muslimeen Islamic Message Board
|The power the arab governments have but won't use|
|09/24/00 at 02:10:02|
|U.S. To Release 30M Barrels of Oil |
The Associated Press
Sep 23 2000 1:06AM ET
WASHINGTON (AP) - Citing a prospective heating oil crisis, the government is putting 30 million barrels of its petroleum stockpile into the market, hoping the additional crude will ease tight supplies and reduce prices before the arrival of winter.
Analysts were uncertain how much of an impact the additional oil will have as it is released from the government reserve over the next 30 days, and Republicans called it an election-year ploy aimed at getting votes for Vice President Al Gore.
``This is not political,'' Energy Secretary Bill Richardson insisted as he announced the oil drawdown Friday - in the form of a ``swap'' for future oil - from the federal Strategic Petroleum Reserve. The reserve on the Gulf Coast has about 571 million barrels of oil for use in emergencies.
``The president wants to help the American people get home heating oil,'' said Richardson, adding that ``we need to make sure that American families are warm this winter.''
It is only the second time since the emergency reserve was created after the 1973-74 Arab oil embargo that oil has been ordered taken to deal with supply problems. The other was in 1991 when 21 million barrels was drawn just before and during the Persian Gulf War.
While hailed by many Democrats, the action was denounced by Republican lawmakers and GOP presidential nominee George W. Bush, who called it a favor to Gore ``to achieve short-term political gain.''
The reserve should only be used ``in case of war or major disruption of energy supplies,'' not to manipulate prices, said Bush, echoing some GOP congressional leaders.
Critics said the oil reserve was created to address acute supply disruptions or other emergencies that do not now exist. Bush said use of the oil now could leave the country without an adequate reserve when needed.
``This action enhances our security,'' Richardson insisted, because the refining companies that obtain the oil are obligated to return oil to the reserve - plus an additional amount - before the end of next year.
``The reason that we are doing this is not for price, but to deal with disruption, to deal with the problems of extreme shortages,'' said Richardson. He cited Energy Department figures that show distillate inventories - heating oil and diesel fuel - are 25 million barrels, or about 19 percent, below normal nationwide.
The shortage is most acute in the Northeast, where people rely heavily on oil to heat their homes.
``This is just what the doctor ordered. There will be an immediate impact on prices when the markets realize we mean business,'' said Sen. Charles Schumer, D-N.Y., who has lobbied the White House to make some stockpiled oil available.
Richardson said the oil will be offered for bid beginning Monday with releases to continue for a month. He did not rule out further action later if necessary.
While even a 30-million barrel infusion of government oil into the market is small - about the amount used in two days by the nation's refineries - the impact of government action could be significant if it signals that the government is ready to intervene, some energy specialists said.
``We're projecting that by Halloween the crude prices will be $25 to $27,'' said Bill O'Grady, an energy analyst at A.G. Edwards & Sons in St. Louis. On Friday, November crude was trading down $1.32 at $32.68 a barrel on the New York Mercantile Exchange.
``Down the line it could help some,'' said Wilfrid L. Kohl of Johns Hopkins School of Advanced International Studies. He said ``perception'' often plays a role in dictating future oil prices.
Campaigning in Pennsylvania, Gore sought to distance himself from Clinton's decision, but he clearly welcomed the announcement. A day earlier he had publicly urged the president to use the reserve oil to ease the threat of soaring heating costs, and continued the theme Friday.
Use of the reserve to try to affect prices has been the subject of intense debate within the White House for months. Last spring, when oil prices soared and gasoline costs skyrocketed, Clinton's advisers were largely opposed to intervention.
But in recent weeks, views began to change even among members of the president's economic team as a series of production increases by OPEC oil producers failed to push down prices or ease the supply crunch, said one senior White House official, speaking on condition of anonymity.
|Re: The power the arab governments have but won't use|
|09/24/00 at 21:19:08|
|A message to the arab leaders from Allama Iqbal - |
" Develop thy personality stronger than blast
Thrust thy camel into the field of strife
The string of GAIN AND LOSS in thy hand
Glory of the dfay star in the palm of thy hand "
|Re: The power the arab governments have but won't use|
|09/26/00 at 13:17:28|
|The only Arab ruler who's had the guts to use oil against the West is the late Shah Faisal (may Allah's mercy be on him) of Saudia Arabia. For those of you too young to remember, he ordered an oil emabrgo against the US and the UK for their support of Israel during the 1970's. We need more rulers like him, may Allah grant us this Ameen.|
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