EconoMeter: Should we be tapping our strategic oil reserves?
Roger Showley, SAN DIEGO UNION-TRIBUNE
Sunday, July 3, 2011
Kelly Cunningham, National University System
Utilizing oil reserves will cause gas prices to decrease at least temporarily and provide a boost to the economy during the peak summer driving season. Market analysts estimate prices at the pump, which were already recently falling, will decrease 10 cents. It is questionable tapping reserves created to deal with supply disruptions caused by natural disasters or political events are necessary at this time. The move helps alleviate consumer’s fuel-cost burdens and encourages other spending to stimulate the economy. It is possible costs will further increase down the road because reserves will need to be replenished by higher priced oil.