President's SPR Release a Shrewd Political Move

Statement

Today, the President announced he was ordering the release of 30 million barrels of oil from the U.S. Strategic Petroleum Reserve. Having spent the better part of his administration preventing the development of America's oil and natural gas resources and increasing costs for our domestic energy companies, this announcement can only be viewed as a shrewd political move by the President.

Hampered by an economy that continues to stagnate, persistent unemployment, increasing opposition to ObamaCare, and fresh new warnings about America's debt problem, the President is desperate for even one good headline. Upon his announcement, oil prices reportedly dropped by five percent. Unfortunately, releasing oil from the SRP is neither good policy, nor sustainable.

There is very little policy justification for the President's order, which amounts to the largest release ever from the U.S. strategic reserves. The SPR is intended for emergencies and today's gas prices can hardly be described as surprising. Ever since taking office, the President has presided over a precipitous climb in gas prices. Americans have been paying $4 per gallon of gas for months with no action by the President.

The President's order is nothing more than a crafty political play to get some good news, if only in the short-term. If the President were serious about increasing long-term supply and reducing gas prices, he would immediately reverse his steadfast opposition to the exploration and development of America's energy resources. That would also be welcomed by the markets, and the American people.

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