Posted on 01/09/2017 2:09:43 PM PST by bananaman22
Two weeks ago we previewed that the U.S. Department of Energy could begin to sell off some of its strategic petroleum reserve (SPR) as soon as January, the beginning of a multi-year process to shrink the nation’s stockpile of oil. Congress has authorized DOE to sell off $375.4 million worth of oil in its recent budget resolution. The DOE said that such a sale could be held in January 2017.
Part of the motivation to sell crude is to finance upkeep for the SPR itself. The reserves are held in salt caverns in Louisiana and Texas, setup decades ago in the aftermath of the Arab Oil Embargo in 1973. The SPR system can hold more than 700 million barrels of oil, the largest strategic stockpile in the world. The idea is that the SPR holds 90 days’ worth of oil supplies, which could be released in the event of a global outage. A release has only occurred a handful of times, such as the Persian Gulf War, Hurricane Katrina and the Arab Spring.
(Excerpt) Read more at oilprice.com ...
Buy high, sell low. It’s the Democrat way.
Why do we always sell of strategic oil reserves when prices are low? We should be either standing pat or adding to the reserves right now.
Stupid!
The whole point of strategic reserve is ti keep for any eventuality, not to sell it off, then have to buy it back later at higher prices, perhaps. Obama is still working on hurting the US as much as he can in his last days.
>Obama is still working on hurting the US as much as he can in his last days.<
.
Hopefully these are his last days in office.
Empty it 100%. THEN see what happens!
Why would Congess do this?
So they want to sell off some inventory to maintain and replace aging infrastructure and the SPR...inventory that would then have to be replaced when the work is done...kind of short sited. The money has to be spent regardless of the source, and ultimately the taxpayers will pay anyway.
Makes no sense....typical of government work.
> a multi-year process to shrink the nation’s stockpile of oil
Obama wants us weak
Stupid question, but does that stuff ever go bad? I know it’s been in the ground for a million years....I said it was a stupid question.
Just drill Alaska.
Idiots.
yike...SPR drawdowns only refer to Bushs’ ?
http://www.ogj.com/articles/2000/09/clinton-orders-30-million-bbl-released-from-spr.html
46 days before the election, where 6 months prior, Clinton thought the release was a bad idea.
More Buy High and Sell Low BS!!!
If we could Drill and pump our own oil we would never need to buy any of the worlds oil.
Yeah, sell during a period of oversupply.
Totally makes sense. If you’re the government.
The genesis of this sell off was agreed to back in Oct. 2016.
snip
And as part of the tentative budget deal reached on Tuesday, the government will
sell about 8% of this stockpile over the next decade.
Between 2018 and 2025, the government will sell a total of 58 million barrels from its
Strategic Petroleum Reserve, or SPR.
The current budget draft also gives Congress the ability to ask for an additional $2
billion worth of sales between 2017 and 2020 to improve the SPR itself.
end snip.....
http://www.businessinsider.com/strategic-petroleum-reserves-budget-deal-sale-2015-10
The US government is about to sell a bunch of its oil — and
it might be a pretty dumb decision
Do we really need this anymore? This was built in the 70s when we were “running out of oil” and OPEC could manipulate the price of oil. Now we have oil literally up our wazoos.
Our ships are in port because they can’t afford fuel and now they are selling the reserves when the price is low.
Just how stupid is the decision maker?
Factoid:
If you put 1 million barrels of oil in the SPR, you can’t recover all of it. Some gets into rock pores and won’t come out.
There is loss in storage.
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