The Strategic petroleum Reserve (SPR) is a bunch of caverns in the south states that are used to hold some 700 million barrels of oil. It is held there for emergencies like Katrina or the Iraqi attach of Kuwait. Real emergencies. Well 2 days ago the US decided to release some 30 million barrels over the next 30 days.
This has a few folks puzzled to say the least because we keep hearing that Saudi Arabia has the ability to dump millions more on the market. Of course, most independent analysts don't really believe that, but do believe the world is approaching a point where no matter how much we "drill, baby drill" there is no more oil to add to the net exports (NE). It would appear that NE is actually declining.
So bingo, oil prices are staying high, economies are stagnate and there is some panic there may be a trend. Thus, we get a draw on the SPR that will provide an additional 1 million barrels a day to the US---we think it is the US but some say the problem is actually in Europe. In any case, this is an attempt to keep the economies of the world at some form of status quo (Even though the status is slipping for other reasons) .
It might also be noted the QE2 just ended in the US of A, which was also a panic way of keeping the economy going by printing money. Releasing oil was another way of bumping the economy for a few more days while we try to figure out how to keep (BAU) business as usual going to the future. This is also considered "kicking the can down the road" or a cheap trick to avoid dealing with reality, the reality being the need for addressing the Sustainable Revolution, or a serious drop in the standard of living. This might also be called "Austerity" a word we have been hearing for a while now.
But the thing that got my attention was the response to this news by commenters on news sites (Yahoo News particularly). I found myself being floored by the naivete of the posters, totally oblivious to what is really going on. They want to drill, they want to attack , they want it all, they blame the government, they blame the bankers, They blame the oil companies, they blame everybody and every institution they can get a hold of but never themselves for living beyond their means. They are in a dream world. Most notably they are very, very angry. The Revolution is happening.
One has to wonder just how pissed off these folks will get. Anger and stupidity is not a good combo.
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