NY Times Criticizes Oil Reserve Plan

In an Op-Ed column on Saturday, The New York Times questions President Bush’s $65 billion proposal to double the capacity of the Strategic Petroleum Reserve over the next 20 years, saying the Administration would be better off searching for oil alternatives rather than stocking up on it.

[Editor's Note: FIR predicts oil prices could fall to $40 a barrel in the next 12 months. Get a free copy of "Four Ways to Profit from the Oil Bust of 2007" and prepare yourself today.]

The Times doesn’t disagree with the advantage of increasing the U.S. oil reserves. In the event of another terrorist attack or natural disaster, the oil reserves would come in handy. However, President Bush’s proposal will only increase the reserves from 55 days worth of net oil imports to 97 days of protection.

The Times wonders if there is a better way to spend $65 billion on helping the U.S.’ oil habit. "Might it not be more usefully deployed developing alternative fuels or more efficient vehicles, thus reducing the nation’s dependence on oil and its vulnerability to future shocks?” asks the Times.

The Times points out that the $2.7 billion a year the program costs is three times the amount Congress earmarked last year for the Energy Department’s research and development program for alternative energy resources.

"It may be necessary to increase backup supplies,” concludes the Times. "But the administration would be a lot more persuasive if it displayed a deeper commitment to programs that would provide lasting security by reducing Americans’ consumption of oil, rather than just squirreling it away.”

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Editor's note:
FIR predicts oil prices could fall to $40 a barrel in the next 12 months. Get a free copy of "Four Ways to Profit from the Oil Bust of 2007" and prepare yourself today.
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