Friday, May 9, 2008 - How to Use the Strategic Petroleum Reserve

Buy low. Sell High.
When oil prices are $120, OPEC makes a huge amount of money. When oil prices are $15, OPEC is still profitable, because their production costs are low – but everyone else gets slammed around. Businesses end up with unprofitable investments, consumers make bad decisions on energy use and conservation, and environmentalists complain about under-investment in alternative energy. We have a great tool to address this problem: the SPR. Let's use it.

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