Repercussions for people outside New Orleans

"John T" wrote in message
...
Mike Rapoport wrote:

There is more refining capacity offline that production capacity.
Releasing crude from the SPR will do nothing.

Percentage-wise, that is correct. However, the SPR oil will go to
refineries (mostly in the Midwest as I understand it) that are
streamlining gasoline production (thanks to the EPA relaxing regional
formula restrictions). This will help reduce or eliminate shortages.

Even if that's not the case, releasing the SPR signaled the market the
government will Do Something to settle oil futures prices.

Even if the effect of SPR oil on actual short-term fuel supplies ends up
being minimal, releasing the oil is the right thing to do. This is the
very type of emergency it should be used for (even if it was a different
type of emergency that spawned its creation).

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John T
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If the SPR oil goes to refineries in the midwest (where the supply of crude
is unaffected) how will that really help? I agree that announcing the
availiiblity of SPR oil has some marginal calming effect on the markets in
the immediate term, but it is not going to affect the supply of gasoline in
any meaningful way.

Mike
MU-2