Airline Industry Blames Bush Administration for High Oil Prices

[pinto]

By Brad Foss The Associated Press
Published: Jan 8, 2004


WASHINGTON (AP) - The U.S. airline industry accused the Bush administration Thursday of recklessly driving up the cost of oil by purchasing unnecessarily large amounts of petroleum for the nation's strategic reserves at a time when prices are already high.

"The government is out buying fuel, it appears, without much regard for the impact that it is having on prices," said James C. May, the chief executive of the Air Transport Association, the industry's main lobbying group.

<snip>

May estimated that the impact of today's high oil prices on the airline industry was "easily $2 billion," or an amount equivalent to nearly half the industry's total expected losses for 2003. He said the industry was in the process of crafting a formal complaint to the Bush administration about its fuel purchasing policies.

The Energy Department is in the process of filling the Strategic Petroleum Reserve, now at 638 million barrels, to its capacity of 700 million barrels.

http://ap.tbo.com/ap/breaking/MGAWZA487PD.html

[indepat]

1. Does Mr. May not understand that the impact of their

actions is fully understood, that it is by design?

[kysrsoze]

2. Precisely. Why would the oil companies want lower crude prices...

when the biggest profit is made at higher prices? No need for cost-cutting measures here.

[salin]

4. bigger picture.... perhaps trying to force high prices to get Energy Bill

passed. Fake a 'crisis' - and create public pressure to pass the abominable energy giveaway to industry. Corps win twice - bigger profits now... and passage of legislation that gives them tons of $$$ in the future.

[TacticalPeek]

3. Shrub's just running the SPR like he ran his businesses, right?

Buy high, sell low.

Isn't that how it goes?