It's time to put the nail in the coffin of high priced oil!
The leadership in Congress is currently considering legislation that would begin selling oil out of the SPR. This strategic petroleum reserve currently has over 700 million barrels. This is a position I advocated several months ago. My interest is to change the supply/demand characteristics of the world and more importantly the US. We could begin selling the oil at say 250,000 barrels per day increasing over 90 days to 1 million per day. Worldwide demand currently exceeds supply by about that amount. We could stop when either demand matches supply or the price is driven down to strong support levels of about $85 per barrel. Further we would be selling oil at above $100 that was purchased as low as $20. That's a good deal on any ones ledger.
The main objective here would be to punch oil prices down through current support at $130. It is down about $17 mostly on demand destruction. However more demand destruction equals slowing economic activity or recession.
I know the Dem's want to spend the proceeds on research of alternative energy sources. That's ok with me. My main interest is giving the citizens of this country a real break of almost a 50% potential drop on the gas they need. This is the best stimulus we could hope for and the government actually makes money doing it.
Republicans should seize on this issue and pare it with offshore drilling. A compromise bill of selling SPR oil and offshore drilling might actually show the American people that congress can actually do something that is worthwhile and effective.