Katrina tragedy is an absolutely perfect storm for oil companies
by James Ridgeway
September 2nd, 2005 9:06 PM
The very first thing George W. Bush did in response to Hurricane Katrina was to offer a helping hand—not to the people stranded on rooftops in New Orleans, but to his friends in the oil industry. These were the same people who gave him $52 million in his last campaign. The president released millions of barrels of oil from the Strategic Petroleum Reserve so the oil companies would have enough fuel to make gas and keep the country going. But the companies don't need this oil. They're already swimming in it.
Pouring more oil into the marketplace didn't reduce gasoline prices, which kept on going up, hitting $4 a gallon in some places.
While crude oil production doubtless was curtailed by the storm, the companies face a surplus, not a shortage, of crude oil. So why dump more on the market?
[Good question... read more here...]