Resource Pages

Jun 27, 2011

Tapping strategic reserves in a non-emergency is a bad idea

The strategic reserve, established after the 1973-74 Arab oil embargo, contains 727 million barrels — just over two months' worth of imports. When it is tapped, the oil usually has to be replaced at higher prices. So this is not something the country should do very often.

An important question is what happens next. After OPEC failed this month to agree to increase production... Read more at NY Times