Posted on 03/20/2014 8:26:29 PM PDT by DIRTYSECRET
Empty it on the world market. This should effect Russia. The others? Who knows. We won't be needing it soon.
Sell to Ukraine and Europe.
Ping.
The strategic oil reserve is literally a drop in the bucket of world demand - its totality doesn’t amount to enough to cause any Sultan to break a sweat. BUT, it’s strategic to the U.S. in the event of some unforeseeable catastrophic interruption in supply; even at that, it only amounts to a few days usage for the U.S., it’s not worth much as a weapon as you seem to see it.
Europe and Ukraine can buy oil from many different countries. Russia is using natural gas to coerce Ukraine and the EU. Ukraine controls the pipelines within it’s boundaries that controls a large percentage of the flow to the EU.
If you want to screw with Russia’s finances you start the process to export LNG to Europe just like the recent project to export LNG to Japan.
Some Obama crony is about to get his/her payoff
At its capacity, the SPR holds about 35 days of normal usage for the US. In a real emergency, that number would be about 70 days, maybe even 100.
It should always be full and never released outside of a genuine national emergency. Putting it all on the market at once would would have a negligible impact on the market for a brief period. It would ultimately harm us a hell of a lot more than Putin. Which is why it’s actually possible that this government might be considering such an idiotic thing.
I agree with all of you. It’s a bummer.
I tend to keep my own 3-6 mo tactical reserve, mostly to offset holiday and hurricane season price increases.
No do not release the strategic oil reserve. It is trap to do so. Oil prices will rise. Do this release and suddenly the US does not have enough oil itself.
Not only no for the reasons listed above, but also, the SPR is low-quality crude, and therefore more expensive to refine.
Crimea has been absorbed back into Russia and that will not change. Russia won this match and there is nothing productive we can do to change the outcome.
Prepare for their next move (Why bother, Obama will fold anyways) is our only alternative at this time.
About the only thing we can gain out of this situation is to point out the weakness of the left in general and their incompetence on the world stage, but even that won't amount to much due to the ignorance and dependence of the majority of voters in this country.
Keep you powder dry and be prepared.
Dumbest crap ever. This is like saying empty the grain silos to eat, even destroying the grain kept for replanting.
We need an industry, a farm, a building of a keystone pipeline. We cannot do that easily if we burn up the oil reserves needed to produce that pipeline and give it to make money or to feed EBT looters.
Indeed, this is the replanting grain silos, it is not meant for open consumption.
But we live in a homosexual liberal free for all economy... and in the name of a bit of more pleasure we are completely destroying children and posterity.
This will end very badly and plays in the hands of our enemies or exilers.
Say hello to Russian.
George Soros recommended the same - so I guess Soros is short oil futures.
Exactly, Soros is short on oil, and he needs to fill his orders.
If Soros says it, probably shouldn’t do it.
Plus, many other reasoned comments here indicate it would be the proverbial drop in the bucket.
Obama just ordered 5 million barrels be released. He said it is part of a “test”; of what, I don’t know.
You forgot the “/S”
Soros recommended it. I would be suspicious:
http://www.zerohedge.com/news/2014-03-20/soros-has-modest-proposal-how-punish-russia
Having warned of Putin’s blind-spot (and Merkel’s position of potential leadership) in the Europe-US-Russia debacle, billionaire investor George Soros has some ideas on how to punish Russia (and some warnings on the consequences)...
•*SOROS SAYS PUTIN ‘ACTING OUT OF WEAKNESS’
•*SOROS SAYS UKRAINE CRISIS IS LEADERSHIP CHANCE FOR MERKEL
•*SOROS SAYS MERKEL’S LEADERSHIP HAS GROWN IN UKRAINE CRISIS
•*SOROS SAYS U.S. SELLING OIL RESERVES WOULD HURT RUSSIA
•*SOROS SAYS U.S. HOLDS ‘STRONGEST SANCTION’ WITH OIL RESERVE
We need the reserve, more or less intact, but we should drop the term “strategic,” because on that front the whole initiative is pathetic.
For decades, OPEC countries have been richly rewarded every time there has been any risk of a supply disruption. Iran threatens to close shipping lanes, prices rise 30%, and Iran collects a windfall without ever having to carry out the threat. It is mystifying to me that Western nations abide this.
At every moment in time, I believe that the SPR should have long-term call options out for 10-20% of the SPR. These options would allow those who exercise them to purchase the oil at a price, let’s just say $110/barrel, that is set modestly above market prices. Doing this would shift the windfall from these threats to the U.S. Treasury and thereby serve two purposes — neutering OPEC threats and making a bit of coin for the SPR.
This is one of many instruments available to the US to counter Russian aggression in Crimea and elsewhere, and to bring OPEC to its knees. Freeing up energy markets, building pipelines, and even perhaps taxing oil/gasoline would all contribute, as well.
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