why dosent the gov. buy a lot of oil at one time so the price of gas will go one day go down?

Question

whats a few billion to the gov.

Answer 1

Real question is why don't we retrieve the oil we do have and refine it instead of buying so much from the Middle East?

Answer 2

The gov. is always buying oil, every day, every minute. We have large reserves stationed all over the USA. These reserves we tap into when oil gets tight or gas prices go up.

Its what is meant when you hear them say the President is going to tap into our gas reserves to lower prices during these hard times. Bush did this after Katrina and I believe 2 other times since then. Normally you only see a few cents drop at the pump.

Our reserves are large underground abandoned salt mines. They hold millions upon millions of barrels of crude oil. But all of our reserves together would only fuel the entire USA by themselves for maybe 1 week.

It is just impossible to hold that much oil above ground for an entire country. The USA consumes I believe like 13 million barrels of oil per day, each barrel is 55 gallons....thats 715,000,000 gallons of just oil. Then you refine that and we lose part to evaporation, you get kerosene, acetone, lacquer thinner, lighter fluid, etc all from that oil. Along with gasoline, diesel, polymers from the oil for plastics and polymers that we all use.

We got addicted to oil, gasoline, plastics, etc and now we are going to start paying for it.

The only way to get off this cycle is to find something that won't run out. Hydrogen is the most abundant element on the planet so that is why many car makers are looking at hydrogen cars.

Answer 3

Buying a lot of oil all at once will cause the price to spike upward. Also, the government already does this. It's called the "Strategic Oil Reserve." Lately they seem to be giving into the political ploy of releasing oil from the reserve to artificially keep prices down temporarily to gain votes.

Answer 4

If the government bought a lot of oil, the price would skyrocket. When supply goes down, what is left costs more. When the government wants to lower gas prices, they release oil from the reserves.

Answer 5

I do not think US is socialist or controlled economy. Free market encourages competition and prices cannot go too high in the long run. But I do not know if the oil companies work together to make maximum benefit for themselves.

Answer 6

hey, hey, how about this? if even 10% of the people in the US boycotted buying gas or 'oil' for one week. you'll see the gas prices going down... quickly. it's funny how the gas companies are having record breaking highs of income, isn't it? hmmm... ******* read people.

Answer 7

They are all the same people. The Saudis and Bush. It's a game they play . Called 'makin' money'.

Answer 8

WE LOST ALOT OF OUR OWN RESERVE DURING KATRINA WE HAVE OTHER WAYS TO SAFE GUARD OUR OIL IT IS POLITICAL THE WAR ETC ETC UNCLE SAM GOTTA GET $$$$$ SOME WHERE

Answer 9

They do.