Cash for Pumpers

[Geee]

American Thinker:

On Thursday the President announced that he would release 30 million barrels of oil from the nation's Strategic Petroleum Reserve. The immediate effect on world markets was to knock the oil price down by over $4 a barrel. But many experts question the wisdom -- and the timing -- of the move.
Clearly, the timing of the withdrawal was politically motivated. Any reduction in the price of gas at the pump is going to be popular, especially with Obama's political base and with independents who are key to his reelection. The problem is that, like every other form of stimulus attempted by this administration, the SPR drawdown will have only temporary results. And in the long term, it will almost certainly drive prices up.
Global demand for oil is now 89.3 million barrels per day and rising nearly 2% annually, according to the IEA. Obama's withdrawal of 30 million barrels over the next month, adding about 1% to current supply, will have little effect on global market prices over time. What it will do is to inject further uncertainty in the oil market, causing producers to think twice before committing new investment to new drilling. Oil companies are already facing opposition by the EPA, the Interior Department, the State Department, and other federal agencies. Under Obama, political barriers to new exploration are at an all-time high. Now these companies, which are eager to expand production, are faced with more interference by the Obama administration.
Before committing another $20 billion to energy exploration and development, America's oil companies are going to want to know whether they can expect a decent return on their investment. What the President has done is signal his willingness to undercut their plans if it is politically expedient to do so.
Of course, that's one side of Obama that we have seen before. He was willing to throw the Rev. Jeremiah Wright, his closest mentor and godfather, under the bus when it was necessary to do so. He was willing to sack his dear friend Van Jones at the point when Jones's public comments became too outrageous even for this administration. He sent Larry Summers packing when it became apparent that the economy was not turning around as hoped. Obama's own half-brother has been huddling in an African hut for years while the President, apparently for political reasons, pretends that he does not exist. (Could it be that the American people might feel some qualms about polygamy within the Obama household, if such were brought to their attention?) There seems to be no one, friend or family, that the President is unwilling to abandon for the sake of political gain.