Exclusive: Obama, UK's Cameron discussed tapping oil reserves: sources

Comments (36)
ConradU812 wrote:

“- including a release from the U.S. Strategic Petroleum Reserve (SPR) – to prevent prices from derailing a nascent economic recovery,-”

Liberalesque translation: “This is an election year, damnit! Gas prices are going through the roof…and on MY watch! Get them down at all costs!”

Using the Strategic Petro Reserve is like eating your seed corn: It may seem satisfying at the moment, but you’ll be starving again down the road.

Mar 14, 2012 9:34pm EDT  --  Report as abuse
Harry079 wrote:

Tapping into the SPR to lower gasoline prices is just about as misguided as zero interest rates is to spur borowing and spending.

There is no shortage of gasoline. If by some miracle gas prices went down to $3.00 a gallon a family might buy something that isn’t on the dollar menu once a week or have the money to refill the propane tank for the grill.

These politicians and I mean ALL of them are so far detached from what reality is they believe that not buying soda and frozen pizzas with a EBT card will save struggling Americans from themselves.

I got on the Treasury Website last night and discovered that every single Trust Fund from Social Security to the Superfund is full of Treasury Bonds that only can be redeemed with cash.

Say Goodnight Irene, the Fat Lady has left the building.

Mar 14, 2012 9:55pm EDT  --  Report as abuse
fromthecenter wrote:

This is to scare some of the speculation that is currently driving up the prices… Nothing more. Supply and demand have NOTHING to do with the current price rises. It is a few select groups who are willing to drive up the price, make a ton of money and then watch the world slip back into a recession that we were just starting to crawl out of. I guess everybody has bad memories… Just before the real estate bubble burst gas went was over 4 bucks a gallon. And that was with Mr. Oil in office.

Mar 14, 2012 12:12am EDT  --  Report as abuse
Prairiefire wrote:

You think that oil prices will go down at the pump if we tap our reserves… LMAO… NO the only thing will happen is even larger profits for the oil company’s.. They will continue to use excuses like they do now… Someone shot a gun over there… We need to raise prices 10 cents a gallon… Instead it will be the wind is blowing to hard in the Gulf of Mexico, we need to raise the price 10 cents…

Mar 14, 2012 12:25am EDT  --  Report as abuse
ConstFundie wrote:

Wow, the gloves are not only off but the spiky brass knuckles are on. This makes me consider that the white house believes that the GOP oil moguls are to some extent purposely exporting American gas to raise prices in America for swaying the upcoming election. Am i paranoid or what?

Mar 14, 2012 12:36am EDT  --  Report as abuse
TheUSofA wrote:

Bush/Blair Part II

Mar 15, 2012 2:37am EDT  --  Report as abuse
GMavros wrote:

Correction, the original Reuters report is at:
http://www.reuters.com/article/2012/03/02/us-fed-banks-commodities-idUSTRE8211CC20120302

Mar 15, 2012 3:24am EDT  --  Report as abuse
jimmy6p wrote:

Poor Barry, he gets blamed for everything. Funny thing is that the people who have benefited most by this President are the ones throwing the biggest darts at him. The facts are on his side.

I thought that the Internet would get more people up to speed about what actually happens in the world, but I guess you can’t force people to educate themselves.

Mar 15, 2012 3:27am EDT  --  Report as abuse
GeorgeBrown wrote:

The current empire and the has-been empire get together for a little chat. The British ego must be stroked occasionally to keep them in line. Too bad Cameron and his austerity nonsense are ruining what’s left of “Great” Britain.

Mar 15, 2012 3:34am EDT  --  Report as abuse
GMavros wrote:

Would you people at Reuters stop messing up the order of these posts?
It’s so annoying. Here I go again:

“…the fight by JPMorgan Chase , Morgan Stanley and Goldman Sachs to retain or expand their prized physical commodity operations – most acquired in only the past six years – has remained hidden.”

“Should these banks lose the debate, the result may be the biggest shake-up in commodity markets since the early 1980s, when Wall Street first discovered the potential profits to be made by wading deep into the murky world of crude oil cargoes, copper stockpiles and power plants.”

Add to this our ill conceived Middle East Policies (forced on Washington by the powerful pro Israel lobby & PAC’s) and we can get a clear picture for our oil predicament.

http://www.reuters.com/article/2012/03/02/us-fed-banks-commodities-idUSTRE8211CC20120302

Mar 15, 2012 3:48am EDT  --  Report as abuse
BeeJayBee wrote:

Obama and his staff are allegedly so confused when it comes to ethics and morals and appear to have limited knowledge of the real world.

Mar 15, 2012 4:12am EDT  --  Report as abuse
amos033 wrote:

This is a sure sign the entire economy is near to collapsing. We can thank President Obama, Harry Reid and the democrats for the rising price of oil. Had they approved the Canada to Texas pipeline the price of crude oil would have dropped drastically

Come November when gasoline is near $8 a gallon, remember who made those decisions to stop the exploration at home and that pipeline which could have generated thousands of local jobs. Think before you pay.

Mar 15, 2012 4:21am EDT  --  Report as abuse
screenname101 wrote:

nothing to say about the record export of oil goods from US manufacturers.And to say we do not have enough refineries. We did till mid 1980′s.

Mar 15, 2012 5:53am EDT  --  Report as abuse
stambo2001 wrote:

Open the spigots, let ‘er flow till there’s not a drop of it left. K, then what? It’s only 3rd week of march and there is at most a months supply in the reserve. Will some hopium induced magic solution to the worlds woes appear? Not likely. What do you do for food when you’ve already eaten the rations?

Better start watching some Mad Max movies if you want a peek of the future unless there is something serious done in short order.

Mar 15, 2012 6:41am EDT  --  Report as abuse
cranston wrote:

$4.02 a gallon here in Michigan. I am getting gas 1 or 2 gallons at a time. Very bad.

Mar 15, 2012 7:29am EDT  --  Report as abuse
DieforGod wrote:

let me get this straight America needs cameron to release pet reserve and America needs needs permission from nato and un to go to war and congress has been told to hit the road i mean what is going on out here marines being told to disarm i know the you been saying that the conspiracy theories are out of their minds but think again

Mar 15, 2012 7:47am EDT  --  Report as abuse
uggabuggaboo wrote:

President Zero really should do something, then maybe he will come in third place after Mickey Mouse in November.

Mar 15, 2012 8:41am EDT  --  Report as abuse
CandleForex wrote:

While this is a nice token effort by Obama, the key fact most people are unaware of is that the biggest export of the USA is…….fuel.

Obama can in one quick stroke solve the problem of high gas costs (for the most part) simply by putting a cap on the amount of gasoline that can be exported.

It is that simple….but it wont happen.

Mar 15, 2012 9:07am EDT  --  Report as abuse
jaham wrote:

@fromthecenter…to scare speculators? That is a legitimate reason to tap our strategic reserves?

Speculation is not inherently evil or even illegal, for that matter. Supply and demand dictate oil prices, speculators simply gamble on which way they think the price is going to move.

On the supply side, you have Iran, Nigeria, and a thwarted keystone project as headlines. On the demand side, you have a recovering world economy and developing nations using far more oil and gas than ever before. Let alone a President who has explicitly stated that he wants higher oil prices in order to speed up conversion to renewables.

It’s pretty clear that the price trend is upwards. Speculators may excaerbate price swings but they are not the root of the problem.

Don’t drink the koolaid.

Mar 15, 2012 9:21am EDT  --  Report as abuse
gregson8000 wrote:

The oil companies keep gouging fellow Americans at the pump, while the OBAMA administration allows them too. If other countries can sell gasoline to their people between $1.00 and $9.00….then we can certainly expect $2.00-2.50 per gallon here in the U.S….if politicians stop accepting bribes from the oil companies

Mar 15, 2012 9:29am EDT  --  Report as abuse
MJGSimple wrote:

Anyone complaining about the price of gas should take a moment to think about the true reason. You’re all for individual capitalism to benefit yourself but when oil corporations, developed only to reap profits, start to exploit their consumers because demand is so high you blame the government. Don’t want high gas prices, stop buying gas. It’s pretty simple.

The greatest irony is that the GOP is saying using some reserves is political pandering. But in reality, the GOP doesn’t want reserves used because they want gas prices high for political pandering. What a joke.

Mar 15, 2012 9:43am EDT  --  Report as abuse
GreyEyes wrote:

Typical election year ploy to get votes. First do things to drive up the prices than step in and try to appear as the one who saved the day. Cant believe people are gullible enough to still fall for this tactic.

Mar 15, 2012 10:05am EDT  --  Report as abuse
jertho wrote:

the absurdity of republican criticism over oil prices is amazing. this is after all a result of their precious “free market” and the abuse of mega corporations. the same institutions that should be allowed to regulate themselves according to conservative dogma. gas prices rise astronomically over “rumors” and “speculation” but go down very little if at all when prospects seem better. all the while oil companies outweigh the GDP of most small countries, reaping record profits at the expense of the greater economy. gas prices permeate every corner of the market. it is treason of the highest order and represents the very worst qualities of capitalism, people and livelihoods become profit potential to be exploited without mercy. so to gain a political advantage republicans accuse the president of not doing enough in an area they claim he has no business regulating. making them almost as bad as the companies pillaging our country. then they mock any alternative to oil and suggest only more of the same dependence on an archaic and finite resource. if love for this country is truly in their hearts then a viable alternative must be found, and the will to make a small sacrifice of convenience in the short run for the future of our country must be mustered.

Mar 15, 2012 10:24am EDT  --  Report as abuse

Tapping the oil reserves would be the most shameless vote pandering in this election yet.

Let. Prices. Spike. Look what happened in 2008. Americans drastically reduced the miles they drove and average MPG went through the roof. Higher gas prices will continue to support these trends. CNG, methanol and other alternative fuels will see an increase in investment. Hybrid development will accelerate. These are all good things. To summarize, don’t @#$& with the market. Let it work.

PS: Cranston, I envy your $4.04 gas. Chicago hit $4.40 yesterday.

Mar 15, 2012 10:45am EDT  --  Report as abuse
USAPragmatist wrote:

I have said it before so i will say it again…..

The real reason for increase in oil/gas prices is the fact that we have reached or are near reaching world peak oil production. We are using a finite resource like it is infinite. No matter how you look at it oil, and all other fossil fuels, is going to run out. We are now suffering because of a lack of comprehensive energy policy to wean us off of fossil fuels, that should have started after Arab Oil embargo in the 70′s. EVERY other industrialized country has a national energy plan, BUT the USA.

The question is why don’t we? My opinion is the power of the oil companies, and the power of $$$ in our political system. The oil companies know the above, but they just want to make as much $$$ as possible while they still can. Screw our economy, screw the environment, and these are the people we give tax credits too? We need the GOP and the Dems that are bought out by the oil companies to see the light, although it probably too late. We could have had higher efficiency vehicles when gas is getting to 4, 5, 6, or even 8 bucks a gallon, but no we have SUVs and the such.

You reap what you sow, and we are know seeing the effects of being shortsighted for the last 40 years.

Mar 15, 2012 10:48am EDT  --  Report as abuse
Sal20111 wrote:

Would be extremely stupid if Obama does so, and Cameron asks for it. Obama’s administration seems to be the worst I’ve seen in my lifetime in understanding markets and economics. Releasing oil reserves is not even a viable near to medium term solution to oil prices, let alone long term. Even in the short term, it may create a countereffect by showing the markets nervy actions. It’s also harmful for the US’s national security, much more than any threat posed by Iran.

Mar 15, 2012 11:02am EDT  --  Report as abuse
jaham wrote:

@jertho…For one thing, Republicans attacking Obama on gas prices is purely political and Obama is playing politics as well – that’s the way the game is played.

But more importantly, I want to take issue with the liberal rhetoric of bashing the free market. You do realize that a true free energy market would be going after shale reserves right now and would have built the keystone pipeline 5 years ago. Not only would gas and oil prices be lower as a result, these would also be economic brightspots in terms of employment, tax revenue, etc.

Capitalism and the free market would work if we could only get out of the way, remove impediments, and allow them to function.

I would go on to rebute the rest of your absurd comment piece by piece, but I see that after bashing oil companies for making a profit and speculators for attempting to do the same and spewing a bunch of liberal drivel you conclude by saying it as all a good thing and a “small sacrifice of convenience”. In your view I guess it is a good thing that those greedy oil companies and speculators exist because they will expedite the development and use of renewables. Great, next time spare us the liberal conspiracy theories.

BTW – in case you didn’t know, you can speculate on the downside by shorting any security or derivative, as well. I’m sure you learned that in liberal arts finance class.

Mar 15, 2012 11:03am EDT  --  Report as abuse
allenallen wrote:

I like it as a safety valve for unregulated (largely) speculation.

If you will recall, some time back, every CEO of every major airline signed a letter, begging congress to do something about the oil speculation that was artificially increasing the price of oil.

Sure this kind of action–releasing from oil reserves–is government action. However, the energy market is not an open competitive free market and because of that, the better solution (invisible hand) is shackled (oil is subsidized and markets are not fair and transparent.)

Mar 15, 2012 11:07am EDT  --  Report as abuse
ablingcain wrote:

YHIS IS THE DEFINITION OF NASCENT====beginning to display signs of future potential;….. not yet fully developed…

Obama, as devious as ever, has a wonk at the White House release a statement that doesn’t admit or deny a release of strategic fuel. Obama knows a release is a poor decision. But he needs “another four years to finish my work” (to destroy this Republic’s economy)\\

this is another deliberate, insulting deceitful plan by Obama; now observe the liberal trolls and the Dem sheepies post praises of Obama.

Leave the STRATEGIC Oil Reserves for emergency, strategic uses.

Mar 15, 2012 12:10pm EDT  --  Report as abuse
coach3rdbase wrote:

Do not release oil from our reserves. One thing he could do right now would be to eliminate the various blends that cog production at our limited refineries. The next thing he could do …..since he already stopped the pipeline expansion is to deliver an ultimatum to the EPA and tell them that the new route must be finalized by August 1st or that they will go back to the original route. Of course that won’t happen because he must get permission from the environmentalists of his party.

Mar 15, 2012 12:21pm EDT  --  Report as abuse

I wonder what then, after tapping our emergency reserves, we will do in an ACTUAL emergency? Does Mr. Obama’s drop in the polls and looming threat against his reelection constitute grounds for using our emergency energy reserves? This idea is RIDICULOUS as his presidency has been.

Mar 15, 2012 12:44pm EDT  --  Report as abuse
Sherlocktoo wrote:

Hey, wait a minute! We’re using less oil, we’re producing more oil, so why would we need to tap the SPR? Supply and demand, right? I mean, wasn’t Bush in bed with his big oil buddies? And we all know how much Bush was hated. Could Obama be in bed with all these big oil ministers? Now commenters are ready to excuse Obama for high gas prices, but was ready to hang Bush. Is there any doubt about media bias? There is no need to release oil from the SPR, simply just do what Bush did. Open up drilling of both coast, and the gulf, by speeding the permit process. Approve the Keystone pipeline would help long term. If you think gas prices are bad now, just wait a few years, and see the results of the over regulation of this administration.

Mar 15, 2012 12:44pm EDT  --  Report as abuse
bucketwalrus wrote:

thanks for the rumor Reuters! your ace reporting managed to shake out all the crude futes weak longs. who paid you for releasing this asinine rumor?

Mar 15, 2012 12:55pm EDT  --  Report as abuse
jertho wrote:

@ jaham- I am bashing human greed and the effect that capitalism has on human interaction. some people are so concerned with profit that they ignore the very future of the human race and the suffering of their fellow humans. shale reserves can be tapped only at a cost to DRINKING WATER and wildlife, this is hardly a logical or ethical solution. if you look at pure profit and productivity it all seems so simple doesn’t it? that’s because you take out the human equation. this is the evil in our system. having a motive to profit only for material gain is dangerous. mankind can have higher motivations such as self imrovement, discovery,and exploration AND still feed everyone AND provide medical care for the populace. it is not only possible but imperative that this happen. we are on a finite globe, alone, no magical man will come and save us and all the things we can buy will never build a new planet or bring back what we have squandered. we are not in any way close to our potential, we are only at a way point. we know only enough to get along on our own little rock for a bit, it is folly to think we have a great system and that it only has to go unchecked to thrive, an unchecked market will go the way of every human en devour that has ever striven for material gain alone, suffering and war. to keep pushing the same old 2 dimensional viewpoint is childish. energy is all around us, there is an equation every school child knows E=Mc2- it means matter is energy, LOTS of energy, that there is enough energy for everyone, everywhere. investing in the pursuit of this is the only prudent course of action, exploration of ourselves and of our universe is also paramount. throwing resources into our present house of cards just to keep it up for a few more decades is flat out irresponsible. people live in poverty still while others have more than they can spend, people don’t have food when others throw it away carelessly, people suffer from sickness when others get a doctor for minor ailments. we can do so much better than this, and we will, because some of us care to look beyond the present and dream of new ways to treat each other and our planet. call me what you will, but slick hair, a suit and sound fiscal policy are sand castles, and will never effect the true history of mankind, one has only to look at a history book to prove that.

Mar 15, 2012 2:03pm EDT  --  Report as abuse
mulholland wrote:

Obama declared economic war on our Iranian oil supply. Obama is losing the war. He might as well have declared war on the voters.

Mar 15, 2012 7:37pm EDT  --  Report as abuse
ConstFundie wrote:

@sherlocktoo, oh man, almost there. Help me Sherlock. Gas is a world commodity and the gas in America is owned by Corporations. So if people in South America, or Japan, or China will pay more than Americans for it, where do you suppose the corporation ships it?

We have been exporting more gas than importing gas. Exporting to South America ( Brazil and Argentina) where gas prices are higher than America. So drill baby drill, ship baby ship, $ baby money. Daddy needs a mansion further inland, the seas are rising.

The really interesting thing is Obama appears outright offended and angry. They are either refusing his urging to reduce profits by keeping gas in America and lowering prices, or they are purposely exporting, all they can justify, to purposely keep prices up for the election. Obama says fine i’ll open up the US reserves AND Britain reserves and force prices lower. Bam.

Cameron looks like a school-boy caught hanging out with the unpopular girl. Obama must really have him by the short hairs, to be putting off his conservative fraternity. Anybody have it?

Mar 16, 2012 1:37am EDT  --  Report as abuse
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