SEARCH BLOG: OIL
Here's a thought: why should the government have to purchase any oil for the Strategic Petroleum Reserve when there are billions of barrels in land controlled by the Federal government?
While President Bush is correct about opening up more areas for drilling leases, there should be an added provision that each lease will provide a guaranteed amount of oil ... at no charge ... to the SPR or the lease terminates within 2 years of failure to provide.
It's a win-win-win. The government get's it's rainy day supply, the oil companies get more oil for sale, and consumers get a larger supply of oil keeping prices down. This is done without going out on the world market for the SPR needs and, consequently, not inflating the demand on the world market.I'm sure someone has an objection. Feel free to have your say.
If this results in excess oil in the SPR, the government could sell the excess at market prices.