Thoughts from a Yellow Dog Democrat living in Olympia, in the great BLUE state of Washington

I am a liberal because it is the political philosophy of freedom and equality. And I am a progressive because it is the political path to a better future. And I am a Democrat because it is the political party that believes in freedom, equality and progress. -- Digby

Wednesday, April 26, 2006

Oil Reserves

Bush says he'll hold off adding deposits to the oil reserve over the summer to add to the supply and (he thinks) lower gas prices -- "Every little bit helps."

During the Clinton years we stopped buying oil for the reserves from the open market and instead started having the oil companies who deposit a percent of the oil they were acquiring from our public lands into the reserves. This was in lieu of rent or royalities.

So my question is -- are the oil companies required to pay in cash these rents or royalities to us? Or did we just give ANOTHER big tax give away to the poor oil companies?

And WHY oh! WHY won't someone from the MSM ask this question or point this out?


UPDATE 8-5-08
Well, things have certainly reversed. Once the price started to rise, Bush started packing in the barrels into the strategic oil reserves. Oil gained the most since September 2005 yesterday after the U.S. Energy Department said it will boost the Strategic Petroleum Reserve to 1.5 billion barrels over 20 years. We reached that goal a little early in 2007 and then opened up a new storage facility. Meanwhile, India and China started hoarding oil as well. Welcome to $4 a gallon gas. But let's keep pumpin'!!


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