Bush's Handling of Gas Costs Criticized

Bush's Handling of Gas Costs Criticized
Release of Oil From Reserve Is Sought
http://www.washingtonpost.com/wp-dyn/articles/A34512-2004May17.html
By Jonathan Weisman
Washington Post Staff Writer
Tuesday, May 18, 2004; Page A03

With oil prices still climbing, President Bush is coming under increasing criticism for his handling of the burgeoning political issue of gasoline costs, not only from Democrats but also from administration allies in the oil-refining and chemical industries.

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Democrats have begun hammering Bush daily on gas prices, but criticism is coming from some surprising quarters as well. Executives at refiner Valero Energy Corp. have repeatedly urged a stop to the transfer of oil into the petroleum reserve. That may not drive down prices on its own, they say. But it would signal to commodity traders that the White House is serious about oil prices, and that would persuade them to dump overpriced oil futures. Prices would fall fast, said William E. Greehey, Valero's chairman and chief executive.

Instead, he said, "they didn't do anything. They tell Saudi Arabia to produce more oil. Then they put it into the Strategic Petroleum Reserve. It just doesn't make any sense at all."

Bob Slaughter, president of the National Petrochemical and Refiners Association, said the industry lobby has not adopted Valero's position, but he acknowledged "some different opinions in the refining community." If the administration is bent on filling the reserve, it should be doing so in secret rather than trumpeting it as a response to the terrorism threat, said Fadel Gheit, an oil and gas analyst at Oppenheimer & Co.

"The administration totally missed the boat on this," Gheit told CBS MarketWatch.com. "It has backfired and spiked oil prices higher."

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so when is the "ass" going to start "jawboning"? oh yeah, forgot, elections are still 6 months away