« Previous | Main | Next »

Obama Proposes to Swap Oil from Strategic Oil Reserve

Share

August 04, 2008 10:09 AM

ABC News' Sunlen Miller Reports: While unveiling his "New Energy for America" plan today, presumptive Democratic presidential nominee Barack Obama will propose swapping light oil for heavy oil in the Strategic Petroleum Reserve, a stance the Illinois senator has not previously held.

"What he will be calling for in speech today is a swap out of light crude for heavy crude," Obama's Energy Policy Director Heather Zichal told reporters on a conference call today,  "The heavy crude will be replaced in the reserve at a later date so that we can get oil into the market."

Obama has long sided with President Bush that the strategic reserve should not be touched at this point – but like Republican rival Sen. John McCain has said because of current strain, more oil should not be added to the reserve.

Last month Obama affirmed his original position to reporters, "I do not believe that we should use this strategic oil reserves at this point," Obama said on July 7th in St Louis, "I have said and in fact supported a congressional resolution that said that we should suspend putting more oil into the strategic oil reserve.  But the strategic oil reserve I think has to be reserved for a genuine emergency."

The campaign says Obama's new proposal was recently decided on, after looking over similar swaps in the past which demonstrated the ability to bring costs down.

"Senator Obama has looked at the issue, he recognized that Americans are suffering, that we have a unique situation with rising gas prices," Obama Energy Advisor Elgie Holstein said, "This is one occasions where we really need to look at this strategically and he made the decision that we do need to tap the strategic petroleum reserve"

Obama's proposal to swap oil comes after a softening in position last week on off shore drilling - the Senator saying he would be open to a compromise that includes off-shore drilling as part of a longer term energy plan. 

August 4, 2008 in Kucinich, Dennis, Tancredo, Tom | Permalink | User Comments (26)

User Comments

Feed You can follow this conversation by subscribing to the comment feed for this post.

Obama should of played Two-Face.

Posted by: geevill | Aug 4, 2008 10:14:27 AM

Finally! Something that should bring down the cost of gas immediately. No one really thinks drilling is a short term answer.

Posted by: awmahn | Aug 4, 2008 10:40:07 AM

McCain for the past 23 years have not voted once to help American's, he has done nothing but vote for the rich to get richer. Bush, McCain, Chaney and Republicans have created this mess we now live in.
The was, the bad economy, the housing, oil companies getting richer by the minute. Do you people not realize that they created this mess they want to blame Obama for, they created this mess they now say they want to save us from???? They created the world we now live in the last 8 years and now he wants to save us from it.??? God help us, you people are eating right into this. McCain is trying to save us from him??? It was is judgments, his votes that got us into all of this, now he wants us to believe he is the only one who can save us???

Posted by: becky | Aug 4, 2008 10:46:25 AM

Huh. Not sure if I'm for or against this proposal, but its interesting.

ABC - for what its worth, I'd like to see more background coverage on this.

Posted by: Paul | Aug 4, 2008 10:47:33 AM

"Who voted for the Bush-Cheney energy bill that was a sweetheart deal for oil companies. It was Lord Obama, not McCain. Also $400,000 from big oil contributors that Barack Obama has already pocketed in this election."

Posted by: tim | Aug 4, 2008 10:52:34 AM

Here's an idea. Why don't we start by keeping the oil we export in our own country. Appx 250 million barrels a year! What good is increased drilling if we just export it??

Posted by: Roy | Aug 4, 2008 11:06:57 AM

I'm glad Obama is paying attention the struggles of us common folk.

Posted by: JimmyTMac | Aug 4, 2008 11:10:45 AM

And how is this proposal going to help the LONG TERM shortage of oil? Doesn't it just defer the problem. This is a harebrained idea at best.

Posted by: Max | Aug 4, 2008 11:15:53 AM

Senator Obama's plan is a solid one. He knows that Off-shore drilling is not a good short-term option, and that we need to develop more alternative fuels. In contrast, McCain just plans to keep us in Iraq - so he can control the Iraqis' oil fields. McCain's plan is ridiculous. We need change in this great nation of ours. We need to elect Senator Obama because he understands the Iraq war was a mistake from the start. Let's help Senator Obama. Just visit his campaign site at this URL: http://www.BarackObama.com - and learn about how you can help the campaign. And remind your friends to register to vote!

Posted by: Allen | Aug 4, 2008 11:22:49 AM

Obama panders to get votes---the last effort was to tell families that he will enlist the oil companies to give them 1,000 per family (the windfall profits). What he doesn't say, which is far more important is that the oil companies will then just raise the price at the pumps...duh. Also, someone please tell Obama how much in US taxes that the oil companies pay, also inform Mr. Obama how much it cost to keep the ocean rigs in sound shape and pay the workers---opps maybe revealing too much to Obama. The oil companies that are the problem. Do the research Mr. Obama and stop thinking that all Americans are just plain dumb.

Posted by: Mike | Aug 4, 2008 11:26:05 AM

Can Senator Obama be nominated 'THE FLIM FLAM MAN OF THE CENTURY'? I certainly think so. More pandering to uninformed voters. Is there any issue he has not changed his stance on????

Posted by: Mary | Aug 4, 2008 11:27:44 AM

Obama is certainly the candidate of idiots. With him, what you see is what you get. Too bad everyone can't see right through him. He's a candidate of hype devoid of substance fooling some of the people all of the time.

Posted by: Max | Aug 4, 2008 11:32:38 AM

In August 2005 Obama said, talking about the President's Decision to Release Oil from the Strategic Petroleum Reserve "...that we shouldn't be tapping the reserve to provide a small, short-term decrease in gas prices."

He said that he did "...agree with the President's decision to release oil from the Strategic Petroleum Reserve to help replenish supply shortages resulting from Hurricane Katrina."

But, "...that this tragedy makes it very clear that that the reserve should only be used in the event of an emergency, and that we shouldn't be tapping the reserve to provide a small, short-term decrease in gas prices."

Now I know that his new position is a bit more nuanced. I'd go even further by saying it's nuanced on purpose so that he doesn't seem like he's a double talker. But if you look at what his goals are, his positions just don't jive. (And "NO" I'm not insinuation anything with the word "jive".)

Posted by: Andy B | Aug 4, 2008 11:37:21 AM

It's call Strategic Reserve, so leave it alone. It's like spending all your savings and then loosing your job.

Posted by: Phillip | Aug 4, 2008 11:51:58 AM

It is getting clearer everyday that Barack Obama is just another political chameleon. A lot of people now finally understand what he meant by "Change". That is, to change any of his previous stand and positions in order to get elected. Rasmussen latest tracking (8/01 to 8/03) shows McCain already leading Obama. Woo Hoo!!!

Poor Democrats, you are so gullible. That's the reason you are always Loser!

Posted by: Kenneth | Aug 4, 2008 11:52:37 AM

The oil in the reserve is there to allow diversion of Alaskan oil(which is currently being exported) into the domestic pipeline system for processing into products to be used domestically IN THE EVENT OF A DOMESTIC CATASTOPHIC OCCURRENCE. There is between 60 and 90 days worth of reserve, which is the time estimated to make the diversion. The reserve oil is not there to eliminate or ease the gas prices. The suggested "swap out heavy for lite" approach once again shows that Mr. Obama, in yet another area, has no idea what he is talking about. God save us from this guy....

Posted by: toto3 | Aug 4, 2008 11:55:06 AM

The oil reserves are supposed to be saved for American to use in case of an emergency. Squandering the reserves, as a political ploy to temporarily appease the voters is grossly irresponsible. What if a real emergency happens, like a disturbance in the straits of Hormuz, after we diminish the strategic oil supply, and we're caught short of a reserve to keep the country from functioning? This kind of irresponsible thinking is just one more reason why we should just say NO to Obama, Pelosi, and Reid.
Keep America strong and secure ... elect Senator John McCain in November ... and dump Pelosi and Reid ASAP.

Posted by: Lee | Aug 4, 2008 12:05:28 PM

Did this phony tell you that the strategic oil reserves are not enough to last for a week if you use it?

Who is he fooling besides people he has fooled already and who had no other choice but stick to the gun?

Wait, there is choice. Zero-bama, as well as HRC, has not gotten enough delegates from the voters. You as a voter still has a say, to vote off the congresspersson or senators or state officials who do not follow your choice.

Then, perhaps, they will change their minds at the Convention.

Posted by: lazy to think | Aug 4, 2008 12:17:49 PM

Man! This is an exponential decay, first order rate!

-----


Weak.
Naive.
Vague.
Arrogant.
Confused.
Dishonest.
Incompetent.
Inexperienced.
Will raise taxes.
Married to Michelle.
Will punish success.
Will expand government.
Will weaken national security.
No record of bipartisianship. Ever.
Longtime supporter of hard-left hate.
More popular in France than in America.
Clapping in Jeremiah's pews for 20+ years.
Likes to play race games to paint himself a victim.
Loved by terrorists and dictators around the world.
Cancels visit with wounded soldiers to hang at Ritz Carlton.
Full of socialist ideas for change and ready to roll on day one.

Nobama '08

Posted by: jack | Aug 4, 2008

Posted by: lazy to think | Aug 4, 2008 12:22:15 PM

Then, go inflate your tires, and your will soon get cheaper gas prices.

Posted by: lazy to think | Aug 4, 2008 12:20:04 PM
-----

Don't air it too much, or it will pop, as 0bama will in November.

Posted by: fact check | Aug 4, 2008 12:24:21 PM

Post a comment