Email L. Henry Platt, Jr.
PLATT'S PETROLEUM PROPOSAL
I propose a simple petroleum program which will benefit everyone! Use the strategic petroleum reserve to generate income for the U. S. Treasury.
I realize that Government isn't supposed to make money. It's expected to spend and frequently waste it, but why shouldn't our Government turn a tidy profit on a program that benefits everyone; the consumer, the producer, the refiners, Wall Street, Fleet Street, and the rest of the world.
I propose price supports for crude oil. I suggest that strategic oil reserves have a standing offer to buy crude at say $18.00 per barrel, and I suggest that the strategic oil reserves have a standard offer to sell crude oil at say $28.00 per barrel. (This leaves U. S. with a $10.00 mark-up on every barrel.) This also leaves speculators and market forces to balance within a range that can still be amply lucrative while allowing for sufficient stability for growth and prosperity.
Additionally, I recommend that laws be repealed, amended or passed so that the private sector will be encouraged to maintain larger inventories to help stabilize prices. Recently a Federal directive was made to establish a one million gallon heating oil reserve in New Haven, Connecticut. Since it will be a Federal program, the inventory will be exempt from New Haven property and inventory taxes of over $100,000 per year. Laws could be enacted on a state level to eliminate the possibility of such taxation and thus to encourage corporate and dealer reserve inventories.
Not too many months ago, the price of crude oil tell to near $10.00 per barrel. Under my proposals the strategic reserves would have ballooned for $18.00 a barrel of crude, and The President would have asked OPEC to gently reduce production. OPEC would not have suffered the humiliation of selling crude for little more than $10.00, and the strategic reserve would be raking in nearly $10.00 profit on all that surplus oil today.
I strongly recommend my PETROLEUM PROPOSAL, and I strongly urge Congress and the President to discuss, consider, possibly adjust slightly and finally enact this proposal which will benefit everyone!
© L. Henry Platt, Jr.