Former Cabinet Members Simulate Oil Crisis
NewsCenter 5 Gets Exclusive Access
POSTED: 4:07 pm EDT May 2,
2008
UPDATED: 10:23 am EDT May 3,
2008
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BOSTON -- It's late December 2009.A simulated cable news network reports, "A brazen terrorist attack left dozens dead."
Watch VideoA global oil crisis is triggered in Turkey."Apprehension about the damage this will cause to international oil markets is rising rapidly," the news anchor reports.Terrorists strike with an oil shockwave that sends gas prices up, and the market down."As you know there's a very serious situation evolving in Turkey," said Robert Rubin, the former Treasury secretary who is participating in this simulation. "And the president has asked us to come back to him in an hour."This is a simulated presidential cabinet. Rubin, Joe Lockhart and five others are all former high-ranking government officials, but they have never faced a crisis quite like this."What do we do right now?" Rubin asked.The market will block 1.8 million barrels of oil a day from the global market.The faux cabinet's task in this simulation is to figure out what the president should say to Americans and the world, and how the United States should immediately handle a crisis.Recommendations range from a national 55-mph speed limit to mandatory carpooling.Another former Treasury secretary, Lawrence Summers, played the same role in this simulation. Summers suggested a gas tax."With all due respect I don't think the secretary of the Treasury will be standing next to the president at his statement," said Lockhart.Cabinet members fear an overreaction."If we try to pursue a bunch of hyper-aggressive policies about conservation we will create panic, lines, we will not solve the problem and we'll look more impotent," said Summers."You'll have immediate shortages in a number of places," said Philip Sharp, who played the part of Department of Energy secretary.Oil and gas prices continue to skyrocket and the market falls deeper. Time is running out to find short-term solutions.They debate whether to pull oil from the strategic petroleum reserve, but agree not to do that right away as the price for a gallon of gas tops $5.The cabinet found few options under the current energy policy, which is what the organizers of this simulation are trying to show Congress and presidential candidates.They say if government doesn't act before a crisis occurs, Americans will face dire consequences because of the nation's dependence on foreign oil.
Watch VideoA global oil crisis is triggered in Turkey."Apprehension about the damage this will cause to international oil markets is rising rapidly," the news anchor reports.Terrorists strike with an oil shockwave that sends gas prices up, and the market down."As you know there's a very serious situation evolving in Turkey," said Robert Rubin, the former Treasury secretary who is participating in this simulation. "And the president has asked us to come back to him in an hour."This is a simulated presidential cabinet. Rubin, Joe Lockhart and five others are all former high-ranking government officials, but they have never faced a crisis quite like this."What do we do right now?" Rubin asked.The market will block 1.8 million barrels of oil a day from the global market.The faux cabinet's task in this simulation is to figure out what the president should say to Americans and the world, and how the United States should immediately handle a crisis.Recommendations range from a national 55-mph speed limit to mandatory carpooling.Another former Treasury secretary, Lawrence Summers, played the same role in this simulation. Summers suggested a gas tax."With all due respect I don't think the secretary of the Treasury will be standing next to the president at his statement," said Lockhart.Cabinet members fear an overreaction."If we try to pursue a bunch of hyper-aggressive policies about conservation we will create panic, lines, we will not solve the problem and we'll look more impotent," said Summers."You'll have immediate shortages in a number of places," said Philip Sharp, who played the part of Department of Energy secretary.Oil and gas prices continue to skyrocket and the market falls deeper. Time is running out to find short-term solutions.They debate whether to pull oil from the strategic petroleum reserve, but agree not to do that right away as the price for a gallon of gas tops $5.The cabinet found few options under the current energy policy, which is what the organizers of this simulation are trying to show Congress and presidential candidates.They say if government doesn't act before a crisis occurs, Americans will face dire consequences because of the nation's dependence on foreign oil.Copyright 2008 by TheBostonChannel.com. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
