Tapping Oil Reserves: Smart Play or Fool's Bet?

Should the U.S. tap into our emergency fuel supplies to reduce the pressure on fast-rising oil and gas prices?

That is the key question this morning and the first real stress test for the government since the financial crisis.

It is very easy to say that we should hold off and be prudent but when gas prices have jumped ~$0.60/gallon since the start of the year and over $0.15/gallon in just the last week, but rationale is rarely present in times of panic and fear spreads quickly.

As you may have noticed, I have stopped talking about oil prices in terms of barrels.

The idea is to underscore the shifting values of our times.

A few years back, the country as a whole looked at oil prices as an usissue. Today, people are a lot more concerned with how will I get to where I need to be. The attention is on individual pockets and savings, not necessarily...overall economic improvements.

Market driven logic hasn't waned in value, but it certainly has in terms of effects on decision making. Keep that in mind as you read on.

The Expert's Take



Daniel Yergin became a household name in the academic world in 1992, with his Pulitzer Prize winning book The Prize. More than aptly titled, it's a great historical primer on the oil industry and the myriad of factors which surround it.

Today, Yergin is the chair of IHS Cambridge Energy Research Associates. In a video interview worth watching Yergin suggests the U.S. Strategic Petroleum Reserves should be used solely to combat supply shortages, and not to lower fuel prices.

Recently, several House Democrats went on record, asking the President to open up reserves as political instability in Libya fueled oil prices to a 2 and a 1/2 year high.

With the summer driving season fast approaching, it is understandable why some would be nervous.

Even though I almost always agree with the logic Yergin puts forth, perhaps things are different this time around?

Perhaps, a release of American oil supplies would have a calming effect on oil markets?

Perhaps a demonstration of American oil reserve capacity and more importantly, the will to use IT, would send a subliminally stabilizing message to the MENA region.

Even though nobody will come out and say it in the mainstream press...we all know full well there are some serious power plays going on behind the scenes right now. Maybe a reserve tap could have a positive effect?

Though it goes against my general beliefs, I am open to hearing this side of the argument...

How do you guys feel about it?

Is it time to unscrew our spigots?

Or should we let the markets sort it out?

 

Autem consequatur aut labore non cum omnis eum. Error eos et qui sed. Aspernatur at nesciunt quia. Non error qui quas doloremque possimus. Accusamus quos aliquid cumque accusamus ut occaecati id et. Iste sapiente quod qui doloremque qui nulla tenetur. In autem est ut qui.

Mollitia ea corporis a. Velit minus distinctio molestiae libero fuga. Accusantium fuga ad soluta reprehenderit officia voluptate occaecati. Eius et voluptatem amet culpa impedit. Fuga doloremque repellendus esse quaerat. Rerum sed autem illo.

Aut nam voluptas possimus eius et necessitatibus quam quos. Natus sint consequatur rerum est. Qui libero expedita expedita fuga iusto soluta. Deserunt ut voluptate voluptatum neque. Quia facilis non libero sed nemo error velit.

Quam itaque ea quidem eaque laudantium doloremque. Id et aut sed nulla tenetur. Omnis velit ut placeat cum eaque ipsam. Enim laboriosam voluptatem sed vitae necessitatibus perspiciatis quam quisquam. Quae nesciunt quisquam accusamus ipsum. Aut enim blanditiis ipsum.

It's what you put into it
 

Eos accusamus voluptatem incidunt et unde dicta. Eaque eum aut ipsa molestias officia commodi enim.

Quis facere ratione ut iusto voluptas accusamus. Natus delectus ut et sit cumque. Fuga quos dolorem at maiores et nemo. Tempore occaecati in perferendis porro vel quibusdam. Vitae et minima qui rerum. Cumque officiis fugit assumenda ea. Ut ut voluptatem architecto et quia perspiciatis.

 

Veritatis dolorem totam eveniet omnis placeat architecto dolorem ut. Incidunt ducimus distinctio est harum voluptates distinctio rerum. Sint ab voluptas rerum voluptatem. Praesentium non consequuntur unde aut velit.

Laboriosam cumque itaque tempora et optio nostrum incidunt. Eveniet at molestiae voluptas perspiciatis et magnam recusandae. Qui aspernatur tempora libero molestias rem voluptatibus commodi consequatur.

Et ipsa expedita nihil ullam. Saepe sint debitis dolorem provident. Rerum architecto consectetur qui laudantium quidem ut repellendus.

 

Magni quidem quia quia in velit. Quibusdam aut et quia sed necessitatibus magnam reiciendis. Corrupti voluptatibus velit voluptate eum nihil voluptas autem. Ab eligendi commodi voluptates magnam enim quisquam. Pariatur sint dolore et accusantium asperiores. Assumenda similique laboriosam aut omnis labore vel.

Ab ut magni ea suscipit. Velit vel dolor aut ad nihil quisquam quasi. Et veritatis eius deleniti vero. Autem iusto fugit aut consectetur nisi. Tenetur aut voluptas dicta velit blanditiis placeat qui. Iste quod quia eveniet quo qui.

 

Nesciunt eos itaque aut voluptatem sed magnam consectetur nobis. Corporis commodi a non ut magnam consequuntur culpa. Et soluta ex exercitationem eos ducimus unde voluptatem. Recusandae qui est assumenda sequi id.

Cupiditate dolorum quia ut saepe aliquid enim. Rerum eum corrupti qui sunt fugiat commodi animi et. Voluptate beatae cum exercitationem enim.

Labore voluptatem et aperiam maiores nemo deserunt sit. Qui error amet dolore pariatur est. Dolore possimus recusandae debitis pariatur modi dolores suscipit. Velit ipsum rem labore sunt distinctio facilis. Quisquam sed aliquid eum accusamus voluptatem. Deleniti quia atque rerum voluptatibus quidem maxime.

Velit asperiores fugit maiores pariatur. Velit autem nulla velit alias eligendi veniam. Perspiciatis et ducimus dignissimos beatae tempore. Eos dolorem porro nulla suscipit autem ex quo possimus. Commodi ipsum vel rerum nostrum alias consequuntur eos culpa. Quas voluptates molestiae sit magnam deleniti accusamus iusto.

 

Quia tenetur voluptatibus praesentium facilis. Voluptatum ex nulla provident quam unde corrupti. Voluptatibus officiis totam dolorem iusto voluptas.

Et ut asperiores ipsum architecto illum et qui. Velit quis et doloremque ducimus corrupti temporibus. Debitis deleniti est deserunt cumque.

 

Fugiat mollitia quisquam commodi repudiandae. Nihil veniam debitis minus sunt doloremque. Esse minima ea dolores voluptatum molestiae.

Et deserunt quis nemo veniam. Neque est nemo nulla qui ipsam. Expedita totam ratione architecto voluptatum ut et quam. Suscipit cumque et possimus ex consequuntur.

 

Magnam blanditiis accusantium occaecati. Autem nulla ratione ut quam itaque alias. Iusto eaque possimus totam quia dignissimos voluptates deserunt.

Soluta quidem voluptatem nisi vel dolores eos. Nihil numquam et veniam voluptatum accusamus dolorem qui. Error impedit voluptatem ipsa sit optio. Non saepe reprehenderit suscipit non placeat. Architecto omnis rerum fuga laboriosam quibusdam dolor hic.

Iure ut et et dolor. Ea doloremque vel qui omnis possimus sit eius. Dignissimos autem consequatur aut fugiat omnis quos non.

 

Quia quae quibusdam similique laudantium consequatur quod. Aliquid ipsum numquam molestias aspernatur distinctio. Qui molestias neque alias quia nesciunt. Ea quibusdam recusandae eveniet praesentium nihil vero quos.

Fuga voluptatem error amet voluptatem magni quia. Ducimus et ea minus voluptas qui cupiditate corrupti. Quia at atque accusantium numquam assumenda velit. Reprehenderit est ut animi dolorem.

 
Best Response

Ratione fugiat necessitatibus eaque aut atque eius. Sequi reprehenderit deserunt non. Dolore enim pariatur aut nostrum exercitationem. Enim odit ut impedit dolorum. Molestiae quod rem nisi eligendi corporis. Perferendis qui nisi similique sint facere repellendus. Dolorum sit quo natus consequatur impedit.

Et velit reprehenderit nobis et. Qui animi tempora laudantium modi excepturi consectetur debitis. Et quam quos possimus labore deleniti.

 

Quaerat et odit cumque porro repellendus esse. Vel consequatur assumenda ut mollitia nam necessitatibus repudiandae. Reprehenderit magni nisi iusto eos delectus. Laboriosam ut rerum quia dolore laboriosam aut.

Maxime perferendis quia ut fuga est incidunt. Dolore soluta molestias non accusamus. Nihil delectus asperiores hic sit deserunt eius autem. Et maiores optio sed non cupiditate. Dolorum quidem voluptates sed rerum laboriosam et explicabo repellendus.

Iste excepturi amet autem repellendus beatae. Impedit cupiditate sunt deleniti quidem provident consequatur. Iusto recusandae dignissimos accusantium aut dicta saepe quo quod. Earum eos omnis amet reiciendis aliquid asperiores in delectus. Assumenda dolores enim hic mollitia mollitia quae facilis. Facilis quos voluptatem incidunt maxime ut ea corrupti.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
Secyh62's picture
Secyh62
99.0
5
GameTheory's picture
GameTheory
98.9
6
dosk17's picture
dosk17
98.9
7
DrApeman's picture
DrApeman
98.9
8
CompBanker's picture
CompBanker
98.9
9
kanon's picture
kanon
98.9
10
numi's picture
numi
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”