Posted on 02/09/2017 9:03:17 AM PST by bananaman22
Some 10 million barrels of crude from the U.S.’s strategic reserve are scheduled to be sold later this month, the Department of Energy said. The shipment is part of a total 25 million barrels, to be sold over a period of three years, as per the 21st Century Cures Act, signed in December last year.
Sales from the SPR are conducted, according to the DoE, to “respond to a severe energy supply interruption, to prevent or address lesser supply shortages or to conduct evaluations of drawdown and sales procedures.” The Department added that the bidding is open to all companies registered in the Crude Oil Sales Offer program and the registration procedure is also open to new entrants.
(Excerpt) Read more at oilprice.com ...
For a while there it looked like we’d have to tap the strategic bacon reserve as well.
It seems they always buy when the prices are up and sell when they are down (like now).
When Clinton was President, lots were sold off, on credit, and one went to a young Black man in his early 20’s who lived with his mother. IIRC, it was worth millions and the kid’s mother worked for Jesse Jackson.
This is based on memory and I hope I recall correctly. Wish I had the names to document the story.
When Trump’s energy policies kick in we’ll have even more surplus reserves.
Why are we selling these reserves when we have ships that cannot get underway due to lack of fuel?
Kickbacks and bribes?
Why are we selling these reserves when we have ships that
cannot get underway due to lack of fuel?
**************
Do these ships run on crude or some derivative of the
processed crude?
Sounds like an interesting story there. Do you have some background on this or a link? Thanks.
Why?
Because Zero said so?? Stupid!
Why do we have these reserves at all? The US has hundreds of millions of gallons of oil which can be pumped at will. Why do we have any reserves. I understand if we were bringing it in. But the reality is that we have more than we need. And both Canada and Mexico have even more. There is no defense purpose for these reserves any more. Use it up. And don’t buy more until the time when the US does not have huge supplies underground naturally.
Sales are done to: “respond to a severe energy supply interruption, to prevent or address lesser supply shortages or to conduct evaluations of drawdown and sales procedures.”
“Evaluation of drawdown and sales procedures” is the only one reason than “it was scheduled and we’re too dumb to change it” that could possibly apply here.
This is bad for several reasons. First, this is a time of low oil prices - we should be stocking up MORE. Second, this lowers prices and hurts American producers who should be propped up or at least not undermined.
Drilling, moving, refining and delivering takes time.
The reserve is a good idea, especially in the event of an EMP attack or event.
The last budget deal used these scheduled sales as a source of revenue for the federal budget, believe it or not. That’s why they’re happening.
yup - should simply sell off 10% every month until it’s all gone.
the strategic oil reserve is stupid
Yeah. My observation as well. This is the time BUY as much as can be stored, and put into reserves what cannot be stored.
Odd policy, but when was it scheduled? Under Obola-Hillary-Kerry’s dictatorship?
The pipelines are full. The tanks are full. The ground is full. Buying a bunch of oil and sticking it in Louisiana salt mines is not helpful. First its not that much. It won’t last us very long. Second, we can always fill it if we think we may need it in the future. Third, one bomb and its gone. Same with Cushing. Fourth, you still have to refine it. We have lots of pipelines crisscrossing the country that bring oil from fields to refineries quickly and cleanly. The Strategic reserves is like us pumping oil out of the ground and then pumping it back in so we could pump it out whenever we wish.
Dump it on the market all at once and THEN see what happens!
Why not pump it and dump it on dc turn it into la brea tar pits
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