Entries in Oil Reserve (2)


Tapping Into Oil Reserves May Lower Gas Prices

Jupiterimages/Thinkstock(NEW YORK) -- Following the Obama administration's announcement Thursday that it will be releasing 30 million barrels of oil from the Strategic Petroleum Reserve, oil prices tumbled by almost $4 a barrel.

But how exactly will this decision impact consumers?

Drivers have been battling high gas prices in recent months due to unrest in the Middle East and North Africa.  But analysts say tapping into the emergency oil reserves may lower prices at the pump.

Joel Naroff, an economist, says consumers could see gas prices go down to close to $3 a gallon.  And if so, that could mean some relief not only for Americans, but also for the country's economy.

"The decline in oil and the resultant decline in gasoline prices could help consumers," Naroff says.  "It's going to put more money in their pockets.  They're going to spend a little bit more."

Still, it may take a while for consumer psychology to improve.  The economy is fragile and the jobs and housing markets remain weak.

Copyright 2011 ABC News Radio


House Natural Resources Chairman: Obama‚Äôs Move on Strategic Reserves May Backfire

US House of Representatives(WASHINGTON) -- Republicans are reacting skeptically to President Obama’s surprise decision to release oil from the Strategic Petroleum Reserve, arguing that it won’t have a major impact on gas prices -- and could be a move that the president regrets if there’s a significant supply disruption.

“I don’t think it's a very good move,” House Natural Resources Chairman Doc Hastings, R-Wash., told ABC News on Top Line Thursday. “It only supplies about a day and a half of the nation's supply of oil. But what it misses is a critical part: It doesn't create any jobs.

“Energy jobs are good-paying jobs. That's where we should be focusing. So all he's doing is releasing what should be there strategically, but it doesn’t do anything regarding jobs. But it does -- which I think is important -- acknowledge that supply is the issue.”

Asked if he thinks the president is putting politics ahead of energy security, Hastings said, “I will just say this as kindly as I possibly can: And that is…his actions have been 180 degrees from what his words are, in a negative way. So I think what he's trying to do is pacify what the problem is.”

Dealing with high gas prices isn’t the point of the reserve, he said: “The strategic reserve was designed [for] when we come to a point where -- horrors if we ever get to that point -- we wouldn't have any supply at all for a little over a month. And now he's tapping that for obviously just a short-term supply.”

“I think it sets a precedent that will probably be tapped again, and all of that time that erodes the strategic supply,” Hastings added.

The long-term answer, he said, is “an all-of-the-above energy plan.” Hastings on Thursday filed a series of bills that would promote energy exploration on federal lands, which fall under the jurisdiction of his committee.

Copyright 2011 ABC News Radio

ABC News Radio