Unfortunately, more often than not, these actions tend to prolong crises, rather than relieve them. A number of options have been put on the table as to how we might be able to mitigate oil prices, apart from the oil exporters agreeing to increase supply. I would advise strongly against withdrawals from the SPR, if only that such would send the wrong message to OPEC and others. These oil exporting countries might then conclude, let the United States add to supply, we will hold firm with our cuts, and we clearly can outlast the United States in this regard. It has been suggested that instead of direct withdrawals from the SPR, why not a form of swaps, with withdrawals to be replaced, with comparable volumes, at a later date.
Swaps are difficult however because of pricing complications.
Once again, we are reacting rather than taking steps to prepare for the next fuel crisis, which will surely appear. A third option attracting support is the establishment of a home heating oil reserve for consumers in northeastern United States. There are arguments for and against this option, but importantly, how much to hold in reserve and what triggers a release are difficult to define. Surely other groups impacted by high oil prices will seek relief in some fashion, for example, farmers in the sowing season, farmers in the harvest season. A much better policy response would be to provide financial assistance programs for the low income, home heating oil consumers in the Northeast.