So I argue in an op ed for Investor’s Business Daily.
Source link: http://blog.mises.org/7544/privatize-the-strategic-petroleum-reserve/
Privatize the Strategic Petroleum Reserve!
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Just make sure it is sold at auction. Otherwise Al Gore will sell it Oxidental Petroleum at a big ….. discount.
I might stockpile enough for my own use, but no more. I fear the guvmint would likely step in during any emergency with an “anti-gouging” measure and wipe out any potential profit.
I might stockpile enough for my own use, but no more. I fear the guvmint would likely step in during any emergency with an “anti-gouging” measure and wipe out any potential profit.
I agree. The threat of “anti-gouging” measures or windfall taxes would make private “barrel” stockpiles too risky vs. the cost involved. Plus private companies already do have ground reserves that can be accessed if the crises lasts long enough.
Robert, of course you`re right, but it`s a political nonstarter. Politicians love to grandstand on oil issues and aren`t about to deal themselves further cards and actually help by deregulating, especially as consumers don`t really understand.
Perhaps some progress could be made by first incorporating the reserve and allowing it to be run blatantly corruptly, thus setting the stage for debate and maybe privatization.
Yet one more example of the faith people have in force vs self interest. The SPR is a perfect example where government buys oil at the highest prices ever (I am sure GB’s and Dick’s oil buds have nothing to do with this.) thus keeping CURRENT prices HIGHER than they need to be. Then they incur huge shipping and storage costs. And the best part is that they have no clue when to release it, neither does anybody else as no-one knows the price of anything in the future.
On the other hand people have no faith in a futures market that punishes speculators and suppliers alike for bad decisions AND BEST OF ALL: Futures markets let speculators and suppliers virtually store oil. So they don’t incur huge costs of storage and shipping.
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